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Old Town finance committee hears midyear update; county audits and jail costs raised
Summary
Bill Mayo told the finance committee the city is about halfway through the year with revenues at roughly 83% and expenditures below 50%; committee members pressed for clarity on Penobscot County audits and noted a $336,000 state pay requisition for the Stillwater bridge.
Bill Mayo, who led the midyear financial review for the finance committee, told members the city is about halfway through the fiscal year and “we've collected almost 83% of our revenue for the year” while overall spending is tracking below 50 percent.
The report noted wastewater expenses appeared low—around 28 percent—because sewer billings had just gone out and will raise that percentage when recorded. Mayo also flagged a pending state pay requisition of about $336,000 for the Stillwater Bridge that had not yet been recorded in the current statements.
The presentation also flagged two budget pressures that could affect fiscal 2025 planning. Mayo said the county budget increase will likely be about 10 percent—“just over $100,000” charged to the city budget—and he warned the regional school unit (RSU) is expected to request additional funds, though the RSU had not provided a percentage at the time of the report.
A committee member pressed for greater transparency on county finances, saying it “looks like Penobscot County is the only one that is not doing audits,” and asked for details on where the county is spending increased revenue, noting much of the growth appears tied to jail costs. The committee discussed whether the county can currently accept prisoners; staff said capacity, licensing and fluctuating inmate counts affect that ability.
Members asked several operational questions, including whether the city could earn interest on temporarily held funds and for an explanation of a $79,000 unexpected balance in the heavy-equipment reserve; staff said they would provide follow-up detail.
Staff outlined the preliminary budget calendar: distribute prior-year budget reports and payroll worksheets around Feb. 12; department head meetings Feb. 17–21; quote and capital-item reviews March 3–7; and department presentations to council around March 17. The committee concluded with a motion to adjourn.
What happens next: staff will return with the requested clarifications on the heavy-equipment reserve, answers about investment options for idle cash, and the finalized projections for county and RSU budget impacts as the council begins its budget work in February.
