9358-R3_LGP_MechanicFalls_2024AnnualReport

FY 2027 Budget Letter

FY 2027 Budget Information

108 Lewiston St. Mechanic Falls, ME 04256

Phone: (207)345-2871

Fax: (207)345-9201

www.mechanicfalls.org

108 Lewiston St. Mechanic Falls, ME 04256 108 Lewiston St. Mechanic Falls, ME 04256

Phone: (207)345-2871 Phone: (207)345-2871

Fax: (207)345-9201 Fax: (207)345-9201

www.mechanicfalls.org

www.mechanicfalls.org

February 9, 2026 February 9, 2026

FY ’27 Budget Letter FY ’27 Budget Letter FY ’27 Budget Letter

February 9, 2026

To: The Town Council, Budget Committee, Staff, and Citizens To: The Town Council, Budget Committee, Staff, and Citizens 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 ’27 Budget. Second, I also want to thank all of 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. 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 ’27 Budget. Second, I also want to thank all of 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. 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 ’27 Budget. Second, I also want to thank all of 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 ’27 budget journey begins with a few important themes to keep in mind and they are as follows: The FY ’27 budget journey begins with a few important themes to keep in mind and they are as follows: The FY ’27 budget journey begins with a few important themes to keep in mind and they are as follows: 1. Debt Free – I am proud to report that as of the start of FY ’27 the town will have no outstanding debt in our operational budget… this is great news! 2. Surplus – FY ’27 will see a substantial decrease in available surplus dollars… this year’s number is $219k, down from $464k. We continue to see a feast/famine scenario with the year-to-year surplus number. 3. 5 Year CIP – Our rolling 5-year capital improvement plan has been updated. This FY ’27 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 ’27 budget continues the quest to keep good people… with a 3% 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 ‘27 is up by 2.3%. On the revenue side… We continue to forecast with a conservative eye. We estimate FY ’27 total revenues to be a little under 1.9 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 ’27 budget has an increase of $201,629 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 ’27 Budget. 1. Debt Free – I am proud to report that as of the start of FY ’27 the town will have no outstanding debt in our operational budget… this is great news! 2. Surplus – FY ’27 will see a substantial decrease in available surplus dollars… this year’s number is $219k, down from $464k. We continue to see a feast/famine scenario with the year-to-year surplus number. 3. 5 Year CIP – Our rolling 5-year capital improvement plan has been updated. This FY ’27 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 ’27 budget continues the quest to keep good people… with a 3% 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 ‘27 is up by 2.3%. On the revenue side… We continue to forecast with a conservative eye. We estimate FY ’27 total revenues to be a little under 1.9 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 ’27 budget has an increase of $201,629 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 ’27 Budget. 1. Debt Free – I am proud to report that as of the start of FY ’27 the town will have no outstanding debt in our operational budget… this is great news! 2. Surplus – FY ’27 will see a substantial decrease in available surplus dollars… this year’s number is $219k, down from $464k. We continue to see a feast/famine scenario with the year-to-year surplus number. 3. 5 Year CIP – Our rolling 5-year capital improvement plan has been updated. This FY ’27 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 ’27 budget continues the quest to keep good people… with a 3% 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 ‘27 is up by 2.3%. On the revenue side… We continue to forecast with a conservative eye. We estimate FY ’27 total revenues to be a little under 1.9 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 ’27 budget has an increase of $201,629 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 ’27 Budget. Feel free to reach out anytime with any questions or concerns you may have. Sincerely, Feel free to reach out anytime with any questions or concerns you may have. Feel free to reach out anytime with any questions or concerns you may have.

Vic Hodgkins, Town Manager

Sincerely, Sincerely,

87

Vic Hodgkins, Town Manager Vic Hodgkins, Town Manager