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Old Orchard Beach council adopts FY2027 budget, taps $1.5M fund balance to limit tax increase
Summary
The council adopted a $28.59 million municipal budget for FY2027 and amended appropriations to use $1.5 million from the unassigned fund balance, a move the town says will keep the proposed mill rate near $11.98 per $1,000; the measure passed 5-0 on June 16.
The Old Orchard Beach Town Council voted 5-0 on June 16 to adopt the FY2027 municipal operating budget of $28,589,406 and an amended package that uses $1,500,000 from the town's unassigned fund balance to reduce the property tax commitment.
A town staff member presenting the figures said the combined municipal-and-school total is about $41,163,852 and that using $1.5 million from reserves would reduce the projected mill rate to roughly $11.98 per $1,000 of assessed value under current valuation assumptions. "With $1.5 million from the unassigned fund balance, it goes down to 3.3% and about $11.98," the staff member said while reviewing the spreadsheet.
Council discussion centered on how much of the fund balance to use and the trade-offs between immediate tax relief and preserving reserves for infrastructure. One councilor said the town has a healthy fund balance and favored the larger draw to provide relief to residents; another argued for continued investment in roads and sidewalks. "To keep it under $12 a mill is a fair opportunity to provide relief to residents," the chair said during debate.
The budget package approved includes a capital improvements appropriation of $2,653,754 and non-property tax revenue assumed at $9,229,225 after the amendment. Line items highlighted by staff include wages and benefits (roughly 56 percent of the municipal budget), utilities and fuels, contracted services and public safety revenue sources such as parking meters.
Councilors moved, amended and voted to increase the original $500,000 unassigned-fund draw to $1,500,000 and to allocate $500,000 from the rescue billing fund; both the amendment and the final FY2027 adoption passed 5-0.
The council also set the property tax due dates for FY2027 (Sept. 16, 2026 and March 17, 2027) and established a 7 percent interest rate for delinquent property taxes pursuant to 36 MRSA section 506.
What happens next: staff will finalize the assessed valuations and mill-rate calculations with the assessor; council discussion indicated the town expects final numbers to shift slightly when assessment data are complete, and the commercial revaluation currently planned for FY2028 could further affect future rates.
