LEWISTON — The City Council approved next year’s $67.8 million municipal budget Tuesday, and forwarded the school budget to voters for a May 13 referendum.

If approved as is, the tax rate will increase by $1.01, to $32.78 per $1,000 of assessed valuation.

Councilors largely agreed during the budget process that the fiscal 2026 spending plan would sustain current services while having the least amount of impact on property taxpayers at a time when the city’s tax rate is a point of concern for many residents.

Officials on Tuesday said they’ve continued to hear concerns, but also pointed to a forthcoming citywide revaluation that will change the equation in 2027.

Councilor Tim Gallant said “we wouldn’t be sitting here arguing over pennies” if past city councils hadn’t put off a full revaluation.

Residential properties in Lewiston are generally assessed much lower than current market value. As of 2022, a state estimate said Lewiston’s “full value” tax rate would be closer to $17 per $1,000 of assessed value.

Gallant said his home is currently assessed at $130,000, but should likely be valued closer to $400,000.

However, Councilor Josh Nagine said the continued increases in taxes are also due to the need to increase the tax base in the city. He said maintaining city services without budget increases is impossible “without an increasing tax base.”

He said he wanted a “net neutral” budget this year, but that it wasn’t possible.

Councilor David Chittim also said that it’s “impossible” to deliver the same services without increased costs given the current economy. He also said “to someone who says they can’t afford the minimal increase, ‘that’s life.'”

Mayor Carl Sheline said that while “any increase is tough,” next year’s budget “is within the realm of reason.”

During an earlier public hearing, resident Matt Roy said the budget process needs to be overhauled, calling it “not transparent” and “illogical.”

Lewiston resident Matt Agren said officials “need to be prepared” for the loss of state or federal funding that could impact the budget plans.

In a separate vote, the council approved $7.4 million in spending from the city’s fund balance, or rainy day fund. The funding includes $400,000 toward homeless shelter operations that is expected to be used toward the new Lincoln Street shelter operated by Kaydenz Kitchen, but officials said there are “conversations that need to happen” before the funds are appropriated.

Prior to the council’s vote on the school budget, David Rackmales criticized the School Committee for its handling of recent discussions over violence in its schools, and he urged residents to vote against the school budget.

Last year, the school budget was voted down twice before it was finally approved.

Councilor Eryn Soule-Leclair said she’s fearful “we’re going to end up back here” following more public opposition to the school budget.

The proposed school budget totals $116.7 million, while the county budget is $4.42 million.

Lewiston’s school budget referendum is May 13.