Lewiston Council Reviews FY27 Budget, Discusses 12 Frozen Positions and Cost Savings

The Lewiston City Council held a budget workshop to review the proposed Fiscal Year 2027 budget, focusing on personal services, fringe benefits, and capital projects. Director Michael Roy presented a budget that includes 12 frozen positions and a new public health officer role, while noting significant increases in workers' compensation and health insurance costs. Councilors discussed the financial implications of underfunded liabilities and the administration's plan to present additional cost-saving options.

Key points

• The proposed budget includes 12 frozen full-time positions, including police officers and highway workers, to manage costs without immediate layoffs.
• A new public health officer position is included in the budget, though Councilor Joshua Nagine recommended removing it or freezing it due to tight fiscal constraints.
• Workers' compensation costs are projected to increase by approximately $488,000, with the city's unfunded liability currently at $2.9 million.
• Councilor David Chittim questioned the long-term impact of underfunded workers' compensation on the city's credit rating, prompting a review of historical deficit data.
• The administration confirmed that the city will not advertise for frozen positions but can unfreeze them later if revenue allows or if candidates are available.
• Councilor Bret Martel emphasized the need for difficult decisions to avoid service cuts, while Mayor Carl Sheline noted that the administration is preparing a menu of additional cost-saving options.

Next steps

• The administration will provide historical data on the workers' compensation deficit trajectory over the past decade.
• The city clerk will review the budgeting for voting machine programming costs to address discrepancies between prior years and the current proposal.
• The administration will prepare a menu of additional cost-saving options for council review.
• The next budget workshop is scheduled for March 17 to discuss economic development, TIF, and CDBG.
• The first public hearing on the budget is scheduled for April 7.

Read the full transcript