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Knox County replenishes contingency, awards TAN and freezes sheriff pay as interim budget work continues
Summary
While two previously tabled interim budget actions remained tabled, the Commission approved a transfer to restore the Contingency Reserve to $100,000, awarded the 2026 Tax Anticipation Note (TAN) to Machias Savings Bank, and amended and approved keeping the sheriff's 2027 salary at the current rate pursuant to Title 30‑A §373.
The Knox County Commission on Jan. 13 approved several finance actions while continuing work on interim budget strategy.
The Commission voted to transfer funds from the undesignated fund to replenish the Contingency Reserve to $100,000 to meet a statutory requirement; the Finance Director said the funds had been used to cover Communications per‑diem costs and stressed the Contingency Reserve should not be used as an ongoing funding source. The Commission also awarded the 2026 Tax Anticipation Note (TAN) bid to Machias Savings Bank, the county’s primary banking partner, which offered the lower interest rate for the bid (the bank has offered the lowest TAN rate for the past five years).
Two previously tabled action items—using the 2025 adopted budget as the county’s interim operating budget beginning Jan. 1, 2026, and prioritizing CPI and step adjustments during the interim period—remained tabled; no motion or vote was taken on those items at this meeting. Staff said more information is needed from 2025 close‑out numbers to determine specific interim‑budget strategies, and current guidance caps spending at 2025 levels while the 2026 budget is finalized. The Commission noted that any approved CPI and step adjustments would be applied retroactively to Jan. 1, 2026.
On the issue of sheriff pay, Commissioners approved setting the elected sheriff’s salary to “remain the same” beginning in 2027 pursuant to Title 30‑A §373 after a motion to amend the item passed and the amended motion then passed 3–0; Sheriff Patrick Polky indicated his support for holding the salary steady given current financial pressures.
The Commission recessed into executive session on a personnel matter and scheduled a special meeting in the near term to continue interim budget work.
