Cuts made in the RSU 39 school budget likely won’t affect Caribou’s mill rate, city councilors learned Monday.
Taxpayers faced a 4.2 mill rate hike with the passage of the $12.5 million municipal budget in March: 2.5 mills from the city and another 1.7 from school and Aroostook County contributions.
City leaders cut nearly $1 million from municipal expenses in June, and councilors urged the school district to pare down its numbers as well. After residents rejected the school budget in a June referendum vote, the district cut $60,000. But that won’t make a dent in the mill rate, City Manager Penny Thompson said.
“The school did come back and they did reduce their expenses by $35,059, and they increased revenue by $25,000,” Thompson said. “But I would just like to remind everyone that last year the increase was over a million dollars, so that’s still going to be a mill increase based on last year’s budget.”
Based on Caribou’s total property values for last year, that 1 mill increase represents $474,000, so the $65,000 reduction will have little effect, she said.
The school board originally proposed a $24.9 million budget that was $1.5 million more than last year’s. The board’s revised figure is still $24.9 million, down by $35,000.
There is some confusion because the city’s fiscal year goes from January to December, while the school district’s is July to June, Thompson said. So each year, the city raises half its school commitment for one year and half for the next.
Deputy Mayor Jody Smith moved to change the city’s fiscal year to July through June, so the city would align with the state, Aroostook County and RSU 39 fiscal years. He has recommended the change before and will continue to push for it, he said.
Councilor Dan Bagley favored the change, saying it could eliminate the confusion that happens with school budgets.
Councilors noted there could be financial repercussions, like there were when Aroostook County changed its fiscal year in 2023. That year, county commissioners set a special six-month budget and towns needed to pay an extra six months ahead to catch up.
Mayor Courtney Boma said her only concern is making the change right now when taxpayers already face higher taxes.
“I think we need to think about doing that when it’s maybe a little bit more feasible for our taxpayers, because when the county moved to a fiscal year it did impact our taxpayers,” she said. “If we were to turn around and do the same thing in the next year, I think it’s going to cause a bit of a burden for the taxpayers.”
The charter committee can discuss the matter, Thompson said. The process would be complex and would also impact Cary Medical Center, as the hospital is municipally owned, she added.
Plans for the new police station hit a snag when all four construction bids came in over budget, Thompson said. City leaders are working with the lowest bidder to try to bring that bid down.
Councilors also recognized the Caribou High School Tech Center’s Future Farmers of America students, who reaped numerous awards, including several first place nods, during the recent state FFA competition.
The following earned awards.
First place, farm business management team: Kayden Guerrette, Megan Martin, George Solomon and Kaleb Poitras. Members also earned all three individual placements.
First place, floriculture team: Joslyn Griffeth, Lexi Botting, Trista Walker and Eleanor Rothlauf, with members taking all three individual awards.
First place, nursery and landscaping team: Joslyn Griffeth, George Solomon, Eleanor Rothlauf and Simon Disy, with team members taking first and second individual placements.
First place, dairy cattle evaluation team: Lexi Botting, Trista Walker, Ian Russell and Eleanor Rothlauf.
First place, safe tractor driving individual, Jaden Corey.
Teams won second place in agricultural sales, veterinary science, forestry and also agricultural technology and mechanical systems, and third place in environmental and natural resources, livestock evaluation and horse evaluation.
Boma presented students with certificates of recognition from the council, and also recognized instructor Scott Moir and Tech Center Director Amy White.
Now, the first-place winners will travel to national events, including the Big E in Springfield, Massachusetts, and the national competition in Indianapolis.
Caribou Parks and Recreation Superintendent Gary Marquis asked permission for the Central Aroostook Chamber of Commerce to hold its 2026 banquet and awards ceremony at the Caribou Wellness and Recreation Center. Though alcoholic drinks are typically not allowed at the venue, he requested council approval for the one-time event.
Councilors unanimously approved the request.
In other business, the group appointed Steven Stubbs and Hannah Holmes of Caribou as ballot clerks and Lori Knight-Phair to the Nylander Museum Board of Directors.
The council also countersigned the warrant for the second school budget validation vote, which will take place on Tuesday, July 8.
Following an executive session, councilors voted to continue Thompson’s employment as city manager. As per the city charter, the council appoints the manager by majority vote for an indefinite term.
The group also voted after executive session, based on the Airport Advisory Committee’s recommendation, to offer space in the Caribou Municipal Airport terminal for an aircraft service mechanic.
