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Saco council narrows and defers nonprofit funding decisions, sets budget vote for May 11
Summary
At a May 4 workshop, the Saco City Council reviewed proposed FY2027 municipal, school and capital budgets and carried a series of adjustments to supported-entity requests for a final vote on May 11, 2026. Councilors debated whether municipal funds should sustain long-standing nonprofit support and asked staff for clearer financial documentation and MOUs.
SACO — The Saco City Council spent much of its May 4 workshop parsing requests from dozens of nonprofits and city commissions as it prepares to vote on the fiscal year 2027 municipal and school budgets on May 11.
Councilors signaled a consistent desire to tighten criteria for municipal support, debating which programs provide a clear and direct benefit to Saco taxpayers and which should rely on private fundraising. "I believe the city council should not decide which 501(c)(3) organizations are deserving of my tax dollars," said Phil Hatch, a resident who addressed the council during public comment and submitted a report recommending clearer categories for supported entities.
The council carried most requests to next week with recommended adjustments rather than making final cuts on the floor. On long-running items: the Dyer Library’s request was recommended to be carried “flat” while staff prepare a memorandum of understanding to clarify the level of city in-kind services; Saco Main Street’s $100,000 TIF allocation was carried forward as requested; Seeds of Hope ($20,000) and the SSAFA food pantry ($15,000) were recommended to move forward. Several smaller or newer requests drew stronger scrutiny, and multiple councilors suggested striking or reducing recurring donations that originated from past informal approvals.
Library director Sophie told the council the Dyer Library’s visitation has grown substantially, noting that "we have gone from 10,000 people a month to 14,000 people a month coming through our doors," and described cuts made to keep the operating request flat. City Administrator Pelletier said staff will present a formal MOU outlining what municipal departments will provide (facilities, IT, plowing) so the council can assess the full cost of city support.
Councilors also raised transparency and financial-review requirements for supported entities after spotting organizations that had not had a documented professional review or audit in many years; members asked staff to amend application language to require periodic financial documentation for future asks.
Procedurally, the council had opened and closed public hearings on the municipal and school budgets and on the five-year capital program that evening and set the final votes for May 11, 2026. The suspension of rules to enter the workshop was approved by roll call 6–0.
The budget packet will be updated based on tonight’s guidance and returned to the council next week for final motions and recorded votes.
