Ellsworth council adopts FY2027 budget after intense debate over taxes and staffing

The Ellsworth City Council approved the fiscal year 2027 operating budget on June 15, 2026, after an extended public hearing and council debate that focused on property‑tax impacts, city staffing and transparency in financial reporting. The budget passed by a 5‑to‑2 vote.

City Manager Pierce framed the budget as a response to rapid valuation and service‑demand growth, telling the council the city has seen “an incredible amount of growth” and noting large increases in employee benefits, public safety costs and deferred capital needs. He described the challenge as “boom and gloom,” pointing to a mix of long‑term growth and near‑term pressures that required careful prioritization of services and capital investments.

Residents who spoke during the public hearing pressed for clearer, line‑by‑line budgeting and criticized perceived overruns. Tiffany Gasper presented detailed line‑item concerns, citing what she described as “$3.3 plus million under in revenues for the fiscal year” and multiple overages on payroll and departmental items. Several speakers urged the council to cut nonessential spending; others defended city staff and said added investment was needed to sustain services.

Councilors debated tradeoffs at length. Supporters of the adopted budget argued the city must fund public safety, maintenance and backlog repairs and that modest tax increases were necessary. Opponents proposed targeted cuts to nonessential spending and questioned the pace of hiring and new mid‑management positions.

The council also voted unanimously to award a $3 million tax‑anticipation note (TAN) to Bar Harbor Bank & Trust at a 4.72% bid to manage cash‑flow ahead of tax collections. Deputy Finance Director Ashley Brown said the TAN is a short‑term instrument drawn as needed and repaid once tax revenues arrive.

The budget resolution adopted by the council includes appropriations for municipal services and enterprise funds; the council recorded the wastewater expenditures at $2,292,748 and water at $1,963,430, and stipulated that the budget is subject to the school budget ratification that voters approved on June 9.

The city manager told the council he will continue to refine financial reporting and pursue a stronger undedicated reserve balance and enhanced financial controls. He and councilors asked staff to examine options for additional revenue tools (including solid‑waste fee adjustments and downtown parking strategies) and to return with follow‑up recommendations.

The council’s action ends a months‑long budget process that included seven public workshops and new data collection efforts by the finance and assessing teams. Officials said a newly hired finance director is expected to help stabilize reporting and support longer‑term fiscal planning.

What’s next: the city will implement the FY2027 budgets and continue work on budget transparency, reserve policy and capital‑planning priorities.