Lewiston officials propose $73 million FY27 budget, freeze 12 positions amid revenue shortfalls

City Administrator Brian Cameron presented a proposed fiscal year 2027 municipal budget Monday evening that would put the city operating budget at roughly $73,000,007.57 and a projected 7.1% increase in city-side operating costs.

The presentation, led by Cameron with finance director Tracy Ward, outlined $4.1 million in reductions already taken from department requests and proposed freezing an additional six vacant positions (bringing total frozen vacancies to 12). "We've already cut $4,100,000," Cameron said, adding that the goal of the reductions was to avoid layoffs and maintain funded positions currently filled.

Why it matters: Officials said a mix of contractual labor increases, rising workers' compensation and health insurance costs, higher maintenance and licensing expenses, and a decline in state revenue sharing have combined to put pressure on the budget. Cameron said the city is not alone in facing these headwinds and that last year's heavy use of fund balance — roughly $7 million — is not recommended for FY27.

Council questions and comparisons: Councilor Harriman pressed staff about an apparent large drop in the revenue column between last year's approved totals and the FY27 recommended figures. Ward and other staff explained that last year’s approved tax-rate-based numbers are not carried into the recommended column until rates and final valuations are set; staff scheduled a detailed revenue review for the next workshop.

Valuation and tax bills: Cameron explained Lewiston's first citywide revaluation since the late 1980s, estimating a roughly 90% increase in assessed value (about $2 billion). "This is not more revenue for the city," Cameron said. "This is a redistribution of the tax burden across the city." He projected the mill rate could fall from about 32.78 to roughly 19.68 post-revaluation but warned that lower mill rates do not automatically reduce every taxpayer’s bill.

Enterprise funds and rates: The administration recommended targeted utility adjustments: a 10% water-rate increase, no change for sewer, and a 7% stormwater increase to address higher payroll, debt and capital costs. Councilor Chittum noted the water-rate increase requires Public Utilities Commission approval and urged staff not to count that revenue until PUC approval is secured.

Nonprofit exemptions and tax equity concerns: Councilor Nadine said many constituents are concerned about rising bills and asked for a breakdown of properties listed as tax-exempt nonprofits, their owners and parcel types, suggesting some nonprofit-designated parcels may effectively operate as businesses and should be reviewed for appropriate taxation. Staff confirmed about one-third of the city's property is tax-exempt and agreed to provide further detail.

What's next: Staff will email the presentation to councilors and bring departments to future workshops for deeper review. Revenue-specific discussions were scheduled for the upcoming Thursday session. No formal votes were taken at the workshop.

Sources and attribution: City Administrator Brian Cameron and Finance Director Tracy Ward presented the figures and answered council questions. Councilors Harriman, Chittum and Nadine raised follow-up questions and requests.