LEWISTON — The fiscal 2023 budget season is officially underway, and the initial outlook in Lewiston shows a projected tax rate increase of more than $4.

However, with a series of budget workshops already behind them, officials will likely offer a list of budget cuts to trim the proposed $50.7 million municipal budget, as well as an initial school budget that reflected a $9.1 million increase.

Earlier this month, City Administrator Heather Hunter presented the initial budget to the City Council, offering a starting point for budget talks.

The municipal budget marks an increase of $3.6 million, or 7.8%, with major increases listed as personnel costs, benefits, supplies and contractual services such as utilities, solid waste disposal and training.

Hunter said the proposed personnel increase includes three positions that were frozen during the previous pandemic-impacted budget: two police officers and a public works engineer position.

She said about half of a projected $248,000 increase in supplies comes from increases in oil and gas prices, and that training costs have increased due to catching up on training that had been put off during the pandemic.

For revenues, the city projects an increase of $147,000, with state revenue sharing up but items such as General Assistance aid, and parking-related revenue down. All city parking garages have been experiencing gate and ticketing malfunctions, funding for which is included in the Capital Improvement Plan.

During last year’s budget talks, the council set a firm goal of capping the city’s tax rate at or below $30 per $1,000 of assessed valuation. Due to increases in valuation, the city eventually dropped the tax rate this year, landing at $28.26.

As of now, the proposed budget would increase the tax rate to $32.35.

Hunter said next year’s Capital Improvement Plan, which includes the city’s major infrastructure costs, will be paid with $6.9 million from the fund balance, with an additional $13.5 million to be bonded.

The initial outlook for the School Department put revenues up $3.7 million, and expenditures up $9.1 million, with a $5.1 million carry forward from this year.

The proposed tax rate increase is also likely to fall based on local and state laws that stipulate how much the tax rate can be increased in a single year.

Hunter said a recent charter change shifted how the city limits annual increases to the tax rate, with the city now using the Consumer Price Index Urban Northeast as a measuring tool. According to Hunter, that would cap a tax rate increase at 5.9%. With the initial budget reflecting a 10% increase, Hunter said that would require $3.16 million in reductions to comply.

However, the council can override the limit with a two-thirds majority, or five votes.

The budget also shows a county tax increase of $3.1 million, a 4.8% hike.

In all, the city budget would represent a $1.55 tax rate increase, while the School Department would be $2.48, and the county 6 cents.

Hunter said no utility rate increases are recommended.

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