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Saco council adopts FY2027 municipal and school budgets, seeds housing and infrastructure funds
Summary
The Saco City Council unanimously adopted the FY2027 municipal appropriation order and approved the school budget; amendments included a $300,000 allocation to seed an affordable housing trust and $200,000 to a committed infrastructure fund for transit/active-transport projects. The municipal budget totals $43,982,264; the school budget totals $59,954,304.
The Saco City Council voted unanimously on May 11 to adopt the city’s fiscal year 2027 appropriation order and to approve the school budget for 2026–2027.
Key votes and totals: Council adopted the municipal appropriation order (approved gross municipal expenditures cited at $43,982,264) and the school budget with a total appropriation shown in the record of $59,954,304. The council also adopted the Water Resource Recovery Department operating budget of $5,844,665, supported by a sewer user fee of $10.10 per unit, and approved other budgeted items and fee schedule changes.
Affordable housing and infrastructure amendments: Councilor Johnston moved—and the council approved—an amendment to transfer $300,000 from the unassigned fund balance into a committed fund to seed a proposed affordable housing trust to support future housing incentives and partnerships. Councilor Johnston also moved and the council approved transferring $200,000 from unassigned fund balance to a committed infrastructure fund for active-transport and transit‑oriented projects. Both amendments passed on roll call votes and were incorporated into the adopted appropriation order.
Tax timing and interest rates: Separately, the council set FY2027 tax rules: the delinquent tax interest rate was set at 7% (the maximum under Title 36, MRSA §505 as cited in the record) and the overpayment/refund interest rate at 3%. The first half tax payment due date is 10/14/2026 (interest accrues 10/15/2026) and the second half is due 03/10/2027 (interest accrues 03/11/2027); the EasyPay program was continued with eight monthly payments from 10/14/2026 to 05/14/2027.
Why it matters: The adopted appropriation order sets the city’s spending priorities and funds services for the coming fiscal year; the housing and infrastructure seed funds are intended to leverage outside funding and public–private partnerships to support affordable housing and active‑transport projects in Saco. Councilors highlighted the growing size of the municipal budget and emphasized the need for transparency, council involvement in planning, and careful long‑term management of commitments.
Next steps: With council adoption, the budget will be finalized for the referendum and administrative implementation steps; councilors expect staff to return with policy language detailing how the new committed funds will be governed and spent.
