Houlton’s Board of Budget Review last night passed a $16.2 million proposed budget, $1.4 million higher than last year, that the Town Council will review and modify on Jan. 8.
The budget includes increases in fuel and utility costs from what the former Town Manager Cameron Clark initially proposed for the coming year.
The review board held its final session Tuesday night, recommending that the $16.2 million budget be reviewed by the Town Council prior to a Jan. 26 public hearing on the matter.
During the four-hour discussion about each line item presented by town officials, many municipal departments requested budget amounts similar to last year. Some cost centers, such as the cemetery budget, decreased from 2025. The review board proposed increasing utility allotments in light of cold weather and rising gas and electric rates.
Last year, the review board cut $1 million from then Town Manager Jeremy Smith’s initial $16.5 million draft. Smith’s proposed budget would have increased the local tax rate by nearly 5.5 mils and at the time, several councilors said that was unacceptable, further slashing Smith’s budget to $14.75.
Councilors said then they did not want residents to be hit with another big tax hike, following large increases in recent years from a market revaluation on properties and increases in county and school mandates.
The 2026 mill rate will not be determined until the council finalizes the budget in January.
The 2026 County tax mandate increased $88,320 from $839,505 in 2025 to $927,825 for 2026.
The RSU 29 obligation decreased slightly for 2026, from $3.2 million in 2025 to $3.1 million for 2026.
Board members recommended that the Town Council consider reducing the capital expense reserve from an initial $973,809 to $434,840. Some capital expense requests from department heads included two police cruisers at $59,000 each, new police portable radios at $8,000 and police tasers at $14,559.
Chief of Police Tim DeLuca said the tasers were at a negotiated savings of about $5,000.
Other requests included several Civic Center improvements such as a kitchen remodel and boiler upgrades.
The detailed budget worksheets are available online.
The Board of Budget Review will present this budget to the Town Council on Jan. 8. A public hearing is slated in the council chambers on Jan. 26.
