FY 2026 Proposed budget presentation 9.25.25.pptx

This presentation provides a clear and accessible overview of key topics, using concise visuals and focused talking points to guide the audience. It is designed to communicate essential information in a way that is easy to follow, with highlights that support discussion, decision-making, and shared understanding.

1. FY 2026 Proposed budget Presented by: City Manager Sonja Eyler, City of Presque Isle

2. FY January 1, 2026-December 31, 2026 Budget Philosophy & Overview Maintenance of effort budget meaning no major initiatives Council Priorities City manager and leadership focus Community priorities Budget workshop road map Federal American Rescue Plan Act of 2021 investments Budget overview Revenue and Expenses overview Key Points, Challenges, & Community Priorities Next Steps

3. Commits to fiscal responsibility in current inflationary environment in Aroostook County at 4.1% Maintains core services and core positions Balances community needs with available resources Invests for long-term sustainability Focuses on equity and value-added service delivery Practices stewardship of our existing resources Explores approaches to retain staff, improve recruitment, and balance work-life Meets all Charter and policy requirements Budget Philosophy

4. City Council Priorities Complete airport terminal and develop Aerospace Park Develop Code Enforcement protocols with service delivery results in our neighborhoods Reduce tax burden on property owners Maintain close involvement in State’s Downtown Village Partnership Initiative (VPI) engineering phase Housing and Community Development Move from slow growth to faster economic growth Financial stewardship – stabilizing taxes, seeking grants and funding, budget preparation with departments Increase recreation, event, and activities programming encouraging tourism and local engagement Continue to reduce homelessness and debris on streets, public land, and riverbeds

5. City manager & Leadership focus areas Develop a strategic and master planning discipline Beautify our neighborhoods, Downtown, & ports of entry Align City projects into a shared vision Enhance civic pride and quality of life for our residents Improve communication with listening sessions and outreach through radio, social media, television, and direct conversations Strengthen and reshape workforce for efficiencies Develop interagency and public/private partnerships Improve neighborhoods with response teams Secure grants to off-set tax burden (y-t-d $2,748,500) Strengthen recovery of unpaid taxes $80,000 (approx.) Improve collections processes to secure funds due $400,000

6. Safer and well-maintained neighborhoods and public spaces Road repair and maintenance Identify and improve quality of life issues including access to services and cultural events Better communication with citizens to improve transparency and accountability in government Reduce residential tax burden Fairness and equity – services and decision-making that treat residents consistently and respectfully Economic opportunity (job growth, housing, infrastructure that attracts investment) Ordinances that address fireworks, animal clean up, and vendors Neighborhoods without health hazards or public nusiances Community Priorities

7. Budget Workshop road map

8. Budget Workshop Road Map

9. Budget Overview Current Investment Projects, ARPA Funds, and Total Revenues and Expenses

10. Current Investment projects underway New Airport Terminal Presque Isle Bypass Project by the State of Maine Land Use / Solar Code Changes Housing Development Partnerships Downtown Village Partnership Initiative by Maine Department of Transportation John F. Kennedy Aerospace Research Park Bike Path Extension Echo Lake Project

11. Department Description Amount Premium Pay – Essential Workers – Misc. $1,000 bonus to all staff $95,204.26 Fire Department - equipment Respiratory fit test machine $17,758.00 Police Department - equipment Ballistic vests, Delta4 helmets, and rifle plates $54,796.00 Street Lighting - infrastructure Central Drive street lights $28,073.00 Emergency Power - equipment Generator $106,544.00 Forum - investment Kitchen Grant Match $74,000.00 Forum - equipment Camera Upgrades $60,415.00 Public Safety Building – infrastructure Overhead doors $9,597.00 Public Safety Building - infrastructure Floor draining & piping (Police Department) $5,976.00 Public Works Building - infrastructure Heating system upgrade $200,000.00 Infrastructure Paving and Software Upgrades $300,023.50 City of Presque Isle ARPA Expense Report As of September 10, 2025 $952,386.76 Total ARPA Allocation

12. Factors outside of our control Revenue Sharing down 16.26% or $686,749 Various union contract wages 4% COLA $564,000 Enterprise Leasing $375,000 up $65,000 Significant utility increase to 6.36% $85,000 Inflation Aging infrastructure needs Insurances 10% increase (unknown until mid-Nov)

13. What is State Revenue Sharing? State revenue sharing is money that the State of Maine collects through sales and income taxes, and then shares back with towns and cities. It helps local governments pay for services so they do not have to rely on property taxes alone. Our share is decided by how much property value we have compared to the state overall, our population, and how heavy our tax burden is compared to others.

14. Impact of revenue sharing If revenue sharing had been funded at the rate that it was last year, this draft of the 2026 budget would be two cents ($0.02) higher than the 2025 approved budget.

15. Deep cuts to public works equipment and paving projected needs reduced by $723,770 and paving $300,000 Conservative projections for facility maintenance needs Delayed purchases or refurbishments of trucks or equipment at the fire department Flat-funded significant number of line items within the operating budget Increased revenues by $171,164.00 Negotiated better fuel rates to decrease budget by $59,000 ($2.675 for #2 fuel oil) Aligned staffing levels with service demand Recommended surplus supplement at $750,000 (average over past three years is $780,000) How we got to the current budget numbers

16. Key priorities and challenges Major cost impacts, capital investments, key challenges

17. Key challenges

18. Areas for improved forecasting Tax-acquired expenses Public health and safety cleanup costs Environmental remediation (campsites) Blighted properties/general community clean up Outreach Coordinator supplies Technology infrastructure needs Revenue projections Housing investments such as site development and incentives for developers

19. Next Steps in the budget process Public hearings Council Workshops Final adoption by December 31 st Gathering data on costs throughout process Implementation January 1 st , 2026 Workshops are open to the public. Community input is vital Citizens can review the proposed budget online Equity Responsibility Growth

20. Future Considerations Security for City Hall Assess need for engineering and planning expertise within city staff to strengthen infrastructure Advance housing development through targeted investments, working with Development Fund for site planning, and city planning Expanding tourism initiatives across arts, culture, recreation, and events Cultivate pride of place and strengthening community identity through public art and beautification across the city Master planning brings separate initiatives into one roadmap for progress that we can advance together Solar consultant to maximize our solar credits

21. Thank you Sonja Eyler and staff [email protected]