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Hallowell council adopts FY2026 revenue and expenditure budgets; TIF, accounts and tax dates also approved
Summary
At a special meeting the Hallowell City Council adopted the FY2026 revenue and expenditure budgets (orders 2503 and 2504), approved routine tax orders for the year and discussed unused TIF funds and how to invest excess cash. Public commenters urged deeper tax cuts and greater fiscal restraint.
The Hallowell City Council unanimously adopted the citys FY2026 revenue and expenditure budgets on the third reading after brief public comment and staff clarifications.
Chair George Lapointe presided as Ross (city staff) described a $180,000 revenue adjustment made to align projected property tax receipts with expenditure plans. “We are putting those into longer term, high… high yield accounts,” Ross said when asked whether excess funds had been moved into higher‑yield investments. Public commenter Matt Morrow thanked the finance committee and asked whether county excess tax funds had been moved and whether TIF funds could be redirected; Ross and Councilor Cooper said $350,000 had been placed in a CDR and that roughly half a million dollars in TIF funds still require a strategy for reallocation or use.
The council also reconciled a $1,000 clerical transfer requested by the Conservation Commission that moved funds into the trail maintenance account; Ross said the entries were a data‑entry issue and would be corrected for the next fiscal year and when funds are expended. Council discussion included an unresolved question about a credit enhancement agreement with Treetops Housing; staff said the first potential payment timing remained unclear and that any cost could be covered with unexpended funds or surplus if needed.
Public commenter Larry Davis urged stronger tax cuts and criticized previous councils for what he described as a large prior property tax increase; the council responded that the municipal portion of the budget had decreased by 15% in the current proposal.
The council approved Order 2503 (adoption of the municipal revenue budget for FY2026) and Order 2504 (adoption of the municipal expenditure budget for FY2026) by unanimous voice/hand vote. Members then approved a set of related tax orders for the year, including tax due dates and interest rates set by statute.
Votes at a glance: the council approved Order 2503 (adopt revenue budget, passed unanimously), Order 2504 (adopt expenditure budget, passed unanimously), Order 2505 (tax due dates, passed unanimously), Order 2506 (delinquent tax interest 7.5%, passed unanimously), Order 2507 (overpayment interest 3%, passed unanimously), and Order 2508 (chronological application of payments per 36 MRSA §906, passed unanimously).
The council said staff will continue work on a TIF review with a consultant and follow up on investment of excess funds; the chair noted a work session scheduled for the 26th to continue budget discussions.
