Interim town manager Jim Bennett outlines FY27 budget preview, flags $646,000 hydrant charge

Jim Bennett, interim town manager, told the Lisbon Falls Town Council he has suspended the 2% merit-pay program and built a 2% cost-of-living impact into his draft FY27 municipal budget, structured as a 2.5% base increase split into a 1.5% raise on July 1 and 1% on Jan. 1 if the council approves the plan.

Bennett said the budget is a work in progress but emphasized improved transparency: spreadsheets and detailed employee compensation sheets are posted online, and department heads will present on March meetings to outline capital needs and answer council questions. "This is the first of four meetings where you'll have presentations to the council," Bennett said, describing the process and urging councilors to use upcoming workshops to request follow-up information.

Why it matters: Bennett recommended a multi-year approach to restoring capital funding, saying the town should aim for roughly $750,000 to $1 million annually for capital projects and use lease purchases to phase that in over three to four years. That target affects long-term tax implications and the town's ability to address deferred maintenance across municipal buildings.

Revenue outlook and staffing recommendations Bennett reviewed key revenue lines and flagged areas of uncertainty. He said excise-tax receipts last year totaled about $1.927 million and he conservatively projected $2,000,025 for FY27. He noted cable-franchise receipts are running below budget (roughly $55,429 received vs. an $83,000 projection). On state revenue sharing, Bennett included $2,055,000 in the draft, slightly above the state's own forecast.

Bennett singled out investment income as an area for improvement, saying the town historically budgeted $300,000 but had only earned about $46,000 because of limited cash-management activity. To address that, he asked the council to confirm his nomination of a new finance director, "Beth," a CPA with municipal audit experience; Bennett said investing roughly $20,000 more in that position could yield higher investment returns.

Personnel, benefits and targeted adjustments Bennett recommended specific position adjustments to address market inequities, including higher pay for a police lieutenant (who does not receive overtime) and reclassification/adjustment for the assistant town manager/HR director (Sarah), who performs both roles. He explained budget practices intended to smooth payroll spikes by appropriating 52.2 weeks for full-time positions and centralizing fringe-benefit accounting rather than leaving benefits embedded in every departmental line.

He also discussed health-plan mechanics and vacancy budgeting: the draft assumes a town contribution level that could create exposure if employees move from single to family coverage during open enrollment and noted the town currently provides a $5,000 stipend to employees who waive coverage.

Operations, special revenues and capital concerns Bennett said he moved Parks & Recreation programs into six special-revenue accounts (events, after-school, summer programs, youth sports, etc.) so program revenue and expenditures can be tracked separately; he estimated $45,000 might be available transferably to offset taxes if the funds consistently sustain those programs.

He warned of deferred maintenance across town buildings and called the town's facilities funding a "sleeping time bomb," recommending the council consider shared building-expertise arrangements with nearby entities like the school district to better manage capital needs.

Hydrant rental and other large exposures A notable line-item Bennett flagged was a PUC-determined hydrant-capacity charge (often called a hydrant rental) that he put at roughly $646,000; he said he missed catching part of that issue in prior budget work and that staff will reconcile whether the number is correct and how it should be budgeted. "Knowing that they had an increase last year, the number has to go up," he said, adding staff will research the charge and discuss options with water commissioners or challenge the PUC determination if appropriate.

Next steps and council authority Bennett said staff will follow up with department-head presentations next Monday and Thursday and will bring forward recommendations, fee-comparison information and any necessary adjustments. The chair and other councilors confirmed that changes to the fee schedule require a vote of the council. After questions and discussion the chair moved to adjourn; the council voted aye on roll call and the meeting ended at 7:55 p.m.

Quotes in context: "I've gone on the record that I think you need to have about 750,000 to a million dollars a year as a target number," Bennett said about capital needs, and later acknowledged the hydrant number as a missed reconciliation item.

What remains unresolved: Bennett left several items marked for further research, including final hydrant charges, wastewater benefit allocations between funds, the precise impact of open-enrollment insurance shifts and the final level of investment income that a confirmed finance director could achieve. Those items will return for council consideration during the upcoming workshops and department-head hearings.