Initial outlook for Lewiston’s 2023 budget shows tax rate hike

LEWISTON — The 2023 budget season is officially underway, and the initial outlook in Lewiston shows an expected tax rate increase of more than $4.

However, with a series of budget workshops already behind them, officials will likely come up with a list of budget cuts to reduce the proposed municipal budget by $50.7 million, along with an initial school budget reflecting a $9.1 million increase. millions of dollars.

Earlier this month, City Administrator Heather Hunter presented the initial budget to City Council, providing a starting point for budget discussions.

The municipal budget marks an increase of $3.6 million, or 7.8%, with significant increases for staff costs, benefits, supplies and contracted services such as utilities, disposal of solid waste and training.

Hunter said the proposed staff increase includes three positions that were frozen in the previous pandemic-hit budget: two police officers and a civil engineering position.

She said about half of a projected $248,000 increase in supplies comes from higher oil and gas prices, and training costs have increased due to catch-up training that had been postponed during the pandemic.

For revenue, the city projects a $147,000 increase, with state revenue sharing but items such as general assistance assistance and parking-related revenue falling. All of the city’s parking lots have experienced gate and ticketing malfunctions, funding for which is included in the capital improvement plan.

During budget talks last year, council set a firm goal of capping the city’s tax rate at $30 or less per $1,000 of property assessment. Due to the increased assessment, the city finally lowered the tax rate this year, landing at $28.26.

Effective immediately, the proposed budget would increase the tax rate to $32.35.

Hunter said next year’s capital improvement plan, which includes major city infrastructure costs, will be paid for with $6.9 million from the fund balance, with $13.5 million additional dollars to bond.

The school department’s initial outlook increased revenue by $3.7 million and expenses by $9.1 million, with a carry forward of $5.1 million from this year.

The proposed tax rate increase is also likely to fall depending on local and state laws that stipulate how much the tax rate can be increased in a single year.

Hunter said a recent charter change changed the way the city limits annual tax rate increases, with the city now using the Northeast Urban Consumer Price Index as its measuring tool. According to Hunter, this would cap a tax rate increase at 5.9%. With the original budget reflecting a 10% increase, Hunter said it would require $3.16 million in cuts to comply.

However, the board can override the limit with a two-thirds majority or five votes.

The budget also shows a county tax increase of $3.1 million, a 4.8% increase.

In total, the city budget would represent a tax rate increase of $1.55, while the school department would be $2.48 and the county would be 6 cents.

Hunter said no increase in utility rates was recommended.

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