WATERVILLE — Facing rising costs and reduced state revenue, the city recently wrapped up the last of four budget workshops as officials work to shape next year’s spending plan.
The sessions, along with a public hearing on the budget proposal set for Thursday, May 7, are meant to get Waterville residents more involved in the budget process.
City Manager Nick Cloutier is urging taxpayers to be proactive about sharing their opinions as the city works through significant financial pressures.
“If I was, you know, all the taxpayers, I would want to know now, how’s it going to impact me … What’s the projected tax rate increase,” Cloutier said. “Am I going to notice any change in services that I’ve come to get used to?”
That, he said, is “my primary advice: Don’t just sit back and let it happen to you, but as much as people are interested or able to be involved, contact your city councilors. And I get people’s lives are busy, they might take for granted what is going on until they get the bill, and then have something to say.”
A combination of domestic, state and local factors means the city is facing significant financial pressure for the coming fiscal year, beginning July 1.In a March 26 letter to department heads, Cloutier wrote, “This is an unusually difficult budget year” for a variety of reasons, with the city looking at a possible double-digit tax increase.
Locally, Cloutier points to city personnel as a major cost driver, at about $1.9 million each year. That does not include any new full-time positions for the coming year.
Additionally, the state is providing $500,000 less in revenue sharing, while the Kennebec County budget assessment is increasing by 15 percent, or another $200,000.
Because of these budget pressures, Cloutier and Mayor Michael Morris said they are looking for places to reduce costs so there is no major increase for taxpayers.
They are “trying to find efficiencies, even if it’s creative with new sources of revenues, or using the TIF (tax increment financing) funds more strategically, or foregoing some nice to have,” Cloutier said. “All of those things combined — not any one of them — would be the solution.”
One example of this is the current hiring freeze. While not a complete halt on all hirings, the approval process is much more rigorous to prevent any potential inefficiencies.
Cloutier, who started in his role as city manager in January, was uniquely positioned coming into this budget season. Waterville has not had consistent city management since 2020, which has led to short‑term views on budgetary measures, such as drawing from the city’s fund balance.
But “this is not a sustainable plan, to keep drawing from that savings account, (and using) fund balance,” he said.
Cloutier and Morris are working to find $1 million in cuts to avoid a major tax increase.
“So, rather than pass on the very high percentage that would have happened, making these types of cuts, or trying to find efficiencies … so that’s where, you know, in our initial memos, the try to cut a million dollars came from,” Cloutier said, adding that “the alternative was, use a million dollars more fund balance, or try to use the same amount.”
City officials have identified about $800,000 in potential reductions so far, and they plan to present their findings to the council next week.
The Waterville Board of Education, which manages its budget separately, also recently presented its proposal. The board is asking for less than expected, which Cloutier said will help the council reach its own reduction target.
City officials said they are taking a broad approach to hit the $1 million mark without major changes for residents.
“If it were to come to further reductions, there likely would be a change in the amount or quality or speed of services,” Cloutier said. “And that’s a real value question, about where we are willing to make those changes.”
More information is expected soon on the budget page of the city’s website.
