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Lewiston weighs $7.8M Lisbon Street fire station, HUD grant and timing amid tax concerns
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Summary
Councilors reviewed a proposed $7.78 million Lisbon Street fire station LCIP project with a $1 million HUD congressionally directed grant. Officials said ~25–30% of the grant has been spent on land and surveys, but delays could increase costs and risk repayment if the project is not completed by the grant deadline.
Director Roy and Fire Chief Karen presented the fire department’s portion of the operating budget and the proposed Lisbon Street fire station LCIP at the council’s budget workshop.
Director Roy said the fire budget shows an overall increase of roughly 12%, with firefighter personnel costs rising because of a new labor contract and fixed‑cost increases including higher hydrant rental due to recommended water rate changes. He identified a Lisbon Street fire station replacement project in the LCIP estimated at about $7.78 million, of which the city’s share is roughly $7.04 million after expected offsets.
Chief Karen and Deputy Administrator O’Malley explained the project’s federal funding: the city secured a congressionally directed U.S. Department of Housing and Urban Development grant (applied for through Senator Collins’ office) for $1 million. Chief Karen said the city has spent about 25%–30% of that grant on land acquisition and wetland surveys and is continuing design and engineering. “The grant is for $1,000,000. We've spent 25 to 30% of it already,” Chief Karen said.
Councilors asked whether the city is locked into the funding and whether a delay would require repayment. Deputy Administrator O’Malley said staff emphasized the project’s emergent need during the application and that HUD/office guidance suggested the funding was intended for a timely replacement. Staff noted the grant requires the project to be complete and reimbursable expenses submitted by about 09/15/2031; if the project is not completed by that date the city may risk losing the grant or having to return funds.
Several councilors expressed concern about moving forward immediately given large taxpayer impacts this year. Councilor Chidham said the station is needed but raised the option of delaying construction to mitigate near‑term tax pressure; others warned delays often increase construction costs and could jeopardize the grant. Deputy Administrator O’Malley and Chief Karen said much preliminary work is already done and that missing the deadline could carry financial consequences.
The workshop did not resolve whether to proceed this year; councilors asked for additional timeline and cost detail. Director Roy noted LCIP spending typically leads to bonding two years after LCIP approval, which affects when debt service hits the tax rate.
Ending: The council requested additional documentation on schedule, remaining grant‑eligible expenses, and potential budget timing scenarios before deciding whether to proceed on construction this fiscal year.
