Waterville adopts 2026 budget; council sets 15% levy increase amid resident concern

The Waterville City Council on Dec. 2 adopted the city’s 2026 budget and approved a 15% levy increase that officials say is driven largely by Fire Hall debt service.

Administrator Teresa Hill described the levy change and how it translates to individual taxpayers: "The City’s proposed levy increase was 15% (levy from $1,242,949 in 2025 to $1,429,391 in 2026, an increase of $186,442); with added taxable value included in taxpayer statements, the effective impact on many individual tax bills was closer to 12%." Hill also noted overall revenues of $3,133,311 against expenses of $3,272,882 and that reserves were applied to reach a projected surplus of $5,110.

Residents pressed the Council during public comment about the tax impact. Resident Ron VanHoudt "raised strong concerns about property tax increases and the impact on residents, urging the council to reduce the levy and control spending." Sue Mariska asked for clarification on the difference between the 15% levy increase and about a 12% household effect; Hill reiterated the distinction between levy-to-levy percentage and effective taxpayer share after valuation changes.

Council members said most departmental budgets had already been trimmed and that the largest budget driver is the new Fire Hall. Hill told the Council the fire hall debt service "increased to $296,188 for 2026 (down from 2025 debt of $273,000 with some debt dropping off)." Councilmember Tim Smith moved to adopt Resolution 2025R-041 approving the 2026 budget as written; the motion passed 5-0. Council subsequently approved Resolution 2025R-042 setting the 2026 levy by a 5-0 vote.

The council did not change the levy amount at the meeting and said additional cuts would likely reduce services. The Council directed staff to provide further clarity on debt terms and any follow-up information requested by residents; Administrator Hill said she would confirm the exact term of the Fire Hall debt for those who asked.