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Lewiston treasurer unveils 2027 budget plan; proposes 2% property tax increase and use of foregone funds
Summary
City Treasurer Amy Gordon presented the mayor's proposed budget approach: a 2% property tax increase (approx. $482,590) to balance core needs, a 1% foregone levy to fund department requests and potential FOP contract costs, reductions to state shared revenue assumptions, and a schedule for hearings and readings in August.
City Treasurer Amy Gordon told Lewiston City Council the mayor's proposed 2027 budget will rely on a modest property tax increase and targeted use of foregone levy authority to close a projected shortfall.
"The mayor's proposed budget will be published in the Tribune on August 2nd and August 9th," Gordon said, laying out the public-notice and hearing timetable and urging councilors to review department requests in budget packets. Gordon walked council through the budget process — department review, identifying contract escalators and reconstructing payroll — and explained the revenue picture.
Gordon said state shared revenue is budgeted at about $4.2 million but noted a changed state formula and a history of variance between budgeted and actual collections; she recommended trimming that budgeted figure gradually (a 10% reduction per year until aligned). Liquor sales distributions have declined and are projected to fall roughly 7% annually, she said. Interest income remains relatively strong but the city has fewer reserves invested than in prior years.
On reserves, Gordon said the city had about $9.7 million in unassigned reserves at the end of 2025 (roughly 106 days cash on hand) and currently projects using about $721,000 of reserves for FY2026, leaving a projected fund balance of roughly $9 million (about 98 days cash) heading into the next fiscal year.
To balance the operating budget, Gordon proposed using 2% of the taxable base (roughly $482,590) and to replace the $250,000 facilities maintenance draw from reserves with an ongoing $241,000 levy (1%). The third funding piece would come from tapping foregone levy authority for department requests and to cover any negotiated labor costs; the full allowable package discussed is about $965,000 across the 3% statutory increase plus foregone uses. Gordon said the city's accumulated foregone balance is approximately $3.4 million.
Gordon outlined the schedule: proposed budget publication Aug. 2 and Aug. 9, public hearings and first reading on Aug. 10, a second reading on Aug. 17 and a third reading and adoption targeted for Aug. 24.
Councilors questioned the size of the deferred maintenance backlog and whether the proposed levy approach would create ongoing revenue for the assigned building fund; Gordon said levying a portion of foregone for operations and maintenance would add to the tax base in perpetuity, while levying for capital is a one-time infusion. She also noted that any negotiated changes in the FOP contract would need to be built into the budget.
Next steps: Gordon and the mayor will finalize the proposed budget for publication and the council will consider the fee resolution and the ordinances and readings in August.
