Lewiston finance director warns reserves will be drawn down as capital priorities grow

Amy Gordon, Lewiston finance director, told the City Council at a work session that the city prepares a separate, balanced budget for each fund and that some capital projects have materially drawn down reserves. "Going into fiscal year 2026, we had 5 and a half million left in that fund," Gordon said of the assigned building fund, which she said has had roughly $13 million contributed and about $7.7 million spent to date.

Gordon reviewed the assigned building fund’s origins (surplus transfers, property taxes, and sale proceeds) and the projects it has supported, including the library second floor and Fire Station 4. She said 2023 was the last year council contributed to that fund and that the council has approved approximately $400,000 in expenditures from it this year.

The finance director also outlined how the capital fund and property taxes have been reallocated in recent years. She said the capital transportation allocation is now about $2,731,000 and that capital parks historically receives $100,000. Gordon warned that some funds—particularly transportation and cemetery—are programmed to spend down reserves in coming years: "We're spending down about 200,000 in reserves in 2026," she said of cemetery projects, and she flagged an estimated $447,000 use of transportation reserves in the 2027 preliminary plan.

Councilors asked about options to rebuild reserves or replace lost revenue streams. Gordon said the mayor and finance office have not finalized numbers and that she will prepare a preliminary draft before meeting with the mayor to produce a proposed budget. She noted possible responses include shifting property tax allocations among funds, restoring a road and bridge tax (she said it historically generated roughly the high $300,000s), or considering a new operational levy. During the facilities presentation, Parks Director Justin Glenn suggested a 1% levy as a funding option; Glenn said such a levy would generate about $240,000—close to the $250,000 in supplemental reserve funding used in recent years.

Gordon emphasized the role of reserves and the tradeoffs of using them: some funds have dedicated revenues and are constrained to particular purposes, while the general fund is more flexible but also more complicated to balance. She described the budget drafting sequence: department budgets are assembled, the finance director and mayor reconcile fund-level proposals and property tax decisions, and then the mayor’s proposed budget is produced for council consideration.

The session closed with council discussion about possible uses of foregone taxes and other one‑time options; the council adjourned without taking a formal vote on new taxes or levies.

Next steps: Gordon will deliver a preliminary budget draft and meet with the mayor; council will review the mayor’s proposed budget in a future work session.