Lewiston presents challenging FY27 budget with 7.1% operating increase

City Administrator Bryan Kaenrath and Finance Director Tracy Roy presented the proposed FY27 municipal budget, highlighting significant cost pressures from labor contracts, county increases, and a drop in state revenue sharing. The proposal includes $4.1 million in cuts to avoid layoffs, freezing 12 vacant positions, and recommending a 10% water rate increase. The council also reviewed the legal process for amending the city charter, with a specific clerical correction scheduled for the November ballot.

Key points

• The proposed FY27 municipal budget is $73.75 million, representing a 7.1% increase in the operating budget after $4.1 million in cuts.
• The city is freezing 12 vacant positions, including police officers, highway workers, and a finance accountant, to control personnel costs.
• A 10% rate increase is recommended for the water utility, while stormwater rates are proposed to rise by 7% and sewer rates remain unchanged.
• Councilor Scott Harriman questioned a significant drop in projected revenue figures, which the administration explained was due to the tax levy not yet being finalized in the spreadsheet.
• Councilor David Chittim requested that budget discussions use the old property valuation for comparison to help residents understand actual tax bill changes versus mill rate changes.
• Chief Counsel Mike Terry explained the difference between charter amendments and revisions, noting that a clerical error in the charter will be submitted for a November referendum.

Next steps

• The council will hold a revenue-focused workshop on Thursday to address questions about the budget figures.
• The water division will initiate the Public Utilities Commission approval process for the proposed rate increase in April.
• Councilor Chittim will submit a charter amendment to correct a subsection reference for inclusion in the November ballot.
• The administration will distribute the budget presentation materials to council members via email.

Read the full transcript