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Eastport council adopts amended FY2027 budget; audit costs and valuation changes push mill‑rate higher
Summary
Council approved the fiscal year 2027 budget as amended, increasing the audit line to $35,000 and reducing capital to offset the cost; staff warned state valuation ratios and a required federal single audit raised pressures on the mill rate and tax burden.
The Eastport City Council voted to adopt an amended fiscal year 2027 budget after staff recommended two adjustments to address higher audit costs and state valuation effects.
City staff said audit fees and a required federal single audit together required increasing the audit line from $21,000 to $35,000. The city manager explained that finding auditors has become difficult since COVID and that engagement letters showed higher fees this year. To offset that increase, staff proposed reducing the capital appropriation by $25,393.13. "There's no way to avoid this cost," staff said during the meeting, and asked council to approve the amendment so the audit could proceed.
Staff also described how the state's valuation‑ratio review affects tax revenue: the municipality's current ratio had fallen well below the ideal range, meaning homestead exemptions and state‑funded programs would interact with local valuations and push the mill rate higher. The manager gave specific municipal totals and a proposed mill‑rate target; after accounting for the audit increase and other adjustments, staff read final budget figures into the record and moved the motion to adopt the amended budget.
Councilors raised concerns about sewer rates and affordability for residents on fixed incomes; staff said sewer is often handled as a separate budget and that a 3.3% sewer increase was under consideration, historically implemented in October. The council also approved a set of related housekeeping items including reallocating a December county tax payment ($323,130.12) entirely from unassigned funds and transferring $22,304 in unspent LRAP funds to capital for road repair.
A separate appropriation of $60,000 from capital was approved for targeted road work (Water Street near the Fisherman statue, a low spot on High Street, corner repairs on 3rd, and spot work on Redoubt Hill Road). The motions were moved, seconded and passed on roll calls recorded in the minutes.
Next steps: staff will complete the final commitment calculations and publish updated tax‑commitment figures and line‑item details. Council asked staff to continue work on a five‑year capital plan and to post historical tax commitments on the city website for public review.
