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Skowhegan Select Board reviews highway budget, weighs leasing loader and excavator
Summary
At the March 17 meeting the Skowhegan Select Board heard the highway departmentbudget, including a recommendation to lease a loader and excavator rather than purchase outright; members discussed capital reserves, FEMA reimbursements being applied to paving and bridges, and a state increase in local roads assistance funding.
SkowheganSelect Board members on March 17 spent the first half of their budget workshop on the highway departmentbudget, focusing on equipment needs, reserves and road maintenance plans.
"I have a loader that's due to be replaced," Jason, speaking for the highway department, said as he presented options. He told the board a municipal lease would be about $58,500 a year for a loader (five years), while an outright purchase would cost roughly $248,000. The board discussed leases for both a loader and an excavator as a way to spread costs rather than drawing down limited reserves. "So, we're going to be leasing a loader and an excavator," Jason said during the presentation.
Finance staff explained personnel and benefits changes produced a slight net reduction in the operating line, while some benefits (healthcare, dental) rose modestly. Board members noted an increase in state Local Roads Assistance Program (LRAP) funding the town receives for maintaining state-delegated local road segments; the LRAP receipt rose from about $174,308 last year to about $218,368 this year.
Board members and highway staff discussed capital reserve balances and a long-term replacement strategy. The townhas limited capital on hand for expensive equipment; the presenter said the highway equipment reserve balance is being rebuilt but remains modest relative to replacement needs. He recommended staged saving plus selective leasing to avoid large one-time purchases that the budget cannot absorb.
The board also discussed using FEMA flood-recovery funds received for 2023 damage. Finance staff said FEMA reimbursements would be split and used as a one-time infusion to the paving plan and the bridge reserve (about $450,000 to each), noting FEMA reimbursements and timing vary and should not be treated as a recurring revenue source.
Members questioned equipment useful life and maintenance capacity. The presenter said loaders are typically kept 10to 15 years and that some newer machines require dealer-level computer diagnostics for repairs, which increases outside-service costs; the townis considering maintenance staffing changes to reduce outsourcing. Board members asked whether a single additional excavator operator could help prepare future ditching work and reduce long-term paving costs.
The highway discussion also touched briefly on the townlandscaping/mowing contract. A past contract award involving a former board member (Paul) was mentioned as a previously disclosed potential conflict of interest, and members emphasized transparency when awarding municipal contracts.
The board did not take a final vote on equipment purchases at the meeting; members asked staff to pursue bids and lease proposals and to return with more precise financing figures and implementation timing. The highway review ended when the board recessed to continue administration budget items.
Votes at a glance - Consent agenda (minutes of March 10, 2026): motion moved and seconded; chair stated the motion carried (tally not specified in the transcript). Amber moved; Kevin Nelson seconded. - Treasurer's warrants #69 and #70: motion carried; transcript records a 5-0 vote on that motion.
Next steps: Staff will obtain formal lease and purchase bids, refine interest and term comparisons and report back to the board with recommended procurement options and timing for capital replacements.
