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Belfast council adopts FY2025–26 budget after debate over school costs and use of reserves
Summary
After extended discussion of a near‑$800,000 increase in the RSU 71 school assessment and the use of two city stabilization accounts, the Belfast City Council approved a $29.77 million fiscal year 2025–26 budget by a 5–0 vote.
The Belfast City Council voted unanimously to adopt the city’s fiscal year 2025–26 budget, approving a $29,772,035 gross spending plan that city staff said represents a $997,091 increase over last year.
City staff told the council the largest driver of the increase is the Regional School Unit 71 assessment, which raises the city’s required payment by almost $800,000 — about 7.32% — and represents roughly 40% of the city’s gross budget. The manager’s presentation also noted more than $2.5 million in federal grants for a proposed public safety building and separate grant awards for street and intersection projects.
The council’s discussion focused on how to absorb the school district increase without unduly raising taxpayers’ bills. One councilor who moved adoption, Neil Harkness, said department heads had been asked to cut and that the staff and council had worked to pare requests "so we didn't have to raise taxes more than necessary." He added that much of the budget pressure comes from higher wages and retirement costs for emergency services.
Councilors explained the budget relied on two stabilization accounts set up after the pandemic. The manager reported the council elected to draw $725,753 from one stabilization account and $187,233 from the other — a total of $912,986 — to help offset the immediate tax impact. The presentation noted those accounts will be depleted by the decision.
The manager also outlined major expense categories: the RSU 71 payment at about $12 million; employee benefits of roughly $2.4 million; public works operations; county services; police and fire/ambulance; and capital projects including vehicle and equipment purchases. The manager said most capital work proposed will be funded with a mix of grants and planned capital funds.
After discussion and brief remarks from councilors acknowledging the difficulty of the year’s choices, the council voted to adopt the budget (motion passes 5–0). The manager and council said the city will continue to explain the changes to residents when property tax bills go out this summer.
The council did not alter the school district’s budget in this vote; the RSU 71 increase was presented as a separate district decision that the city must fund.
