9051_LGP_MechanicFalls_2024AnnualReport_Web

BUDGET SUMMARY

February 3, 2025

FY ’26 Budget Letter

To: The Town Council, Budget Committee, Staff, and Citizens First, I once again want to extend a big thank you to Lisa Prevost for her invaluable assistance in the creation of this proposed FY ’26 Budget. Second, I want to thank all the Department Heads for working with us and taking the time to comb through this budget line by line. As many of you know, creating a municipal budget is indeed a balancing act of providing necessary town services weighed against the ability of the taxpayer to afford those services. In the end, while no budget is perfect, I hope you’ll agree that all involved gave a good faith effort to achieve a livable balance. The FY ’26 budget journey begins with a few important themes to keep in mind and they are as follows: 1. Surplus – FY ’26 will see a substantial increase in available surplus dollars… this year’s number is $464k, up from $178k. We continue to see a feast/famine scenario with the year-to-year surplus number. 2. FY ’26 Maine State Revenue Sharing – Great news! We are on course to receive an increase of $162,461 from our share of Maine State Revenue. 3. 5 Year CIP – Our rolling 5-year capital improvement plan has been updated. This FY ’26 budget lays out a plan to pay for major capital assets with cash, while saving monies for future capital purchases… all without the use of debt, and unwanted interest payments. 4. Employees – They are the soul of our operation, and this FY ’26 budget continues the quest to keep good people… with a 4% cola for non-contracted staff, along with ongoing wage adjustments. As of the revised writing of this letter, on the expense side, the overall General Fund budget for FY ‘26 is up by 5.0%, with 4 budgets less than the current year. On the revenue side… We continue to forecast with a conservative eye. We estimate FY ’26 total revenues to be a little over 1.8 million dollars. This includes all estimated State and local revenue sources. Updated revisions of course may make this number increase or decrease. This presented FY ’26 budget has a decrease of $61,131 in the net to be raised calculation. A reminder to all, it is normal and commonplace for some of these presented numbers to change as a part of the budget process. Better and updated information can result in a line-item number change, as well as further direction from the Council or Budget Committee. We will do our best to keep everyone informed and up to date with the latest and greatest information. I look forward to working with you on completing the Town of Mechanic Falls FY ’26 Budget. Feel free to reach out anytime with any questions or concerns you may have.

Vic Hodgkins, Town Manager

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