FAYETTE — The Board of Selectmen met April 1 at Starling Hall, where members heard updates on the upcoming spring auction for Starling Hall, reviewed the school board’s budget request, and discussed a potential federal policy change affecting municipal bonds.

Lori Beaulieu of Friends of Starling Hall presented an update on the group’s annual online auction, which began April 4 and runs through May 2. “We have generous donations from all over the state of Maine,” Beaulieu said. “We have over 30 donators just from Fayette and over 200 items.” She encouraged community participation, saying, “Bid high, bid often.”

Winning bidders will be notified by email the morning of May 2. Auction item pickup will take place Saturday, May 3, from 7:30 a.m. to noon at Starling Hall, which will also host a bake sale and breakfast that morning rain or shine. The board thanked Beaulieu and expressed appreciation for the group’s continued efforts to support the renovation of the historic building.

Vice Chair Michael Carlson reported on recent school board of directors budget discussions. He said the board plans to request an additional $173,000 from the town, in addition to using $150,000 from the school’s unrestricted reserve fund. “That number is not set in stone,” Carlson said. “They are considering taking more.”

Carlson cited a projected $130,000 decrease in state revenue sharing and an increase of 56 units in the state-required local EPS [essential programs and services] share as key factors driving the request. Additional increases are expected in secondary education costs, up $109,000, as well as health insurance premiums, which are rising by 12%. Teacher salaries are also under renegotiation this year, and the addition of a new special education student is contributing to higher expenses.

Savings are expected in several areas, including $31,000 from the food service budget and $11,000 from heating costs. Carlson also noted a cut to a part-time maintenance position and changes to how health services are delivered to students. “They do not see any major decreases in the cost to run the school in the foreseeable future,” he said. “It’s either going to be flat or it’s just going to keep going up.” Chair Lacy Badeau thanked Carlson for the report.

Town Manager Mark Robinson shared the Fayette Parks and Recreation Committee had prepared a flyer highlighting upcoming recreational programs for local students. A fund approved at Town Meeting will be used to provide financial assistance to families in need.

Robinson announced the town received a mini-grant from the Galen Cole Family Foundation and Cole Land Transportation Museum to help replace American flags displayed along Route 17 near the village. The grant will cover half the cost of 10 new flags. “People do give voluntarily to that fund,” Robinson said, which helps ensure the flags are displayed from Memorial Day to Veterans Day each year.

Robinson also met with a representative from the Maine Historic Preservation Commission to discuss exterior improvements to a local building. “We are encouraged that we will not see peeling paint on this building before this fall’s snow occurs,” he said.

He closed his report with a warning about a federal proposal that could eliminate the tax exemption on municipal bonds. Robinson said Fayette was awarded a $1.5 million tax-exempt bond in October 2024, intended for use in October 2025. If the exemption is repealed, the town could face up to 30% in taxes on the bond, translating to an estimated $450,000 cost. “That’s two mils on our tax rate, approximately,” Robinson said.

“We’ve notified our congressional folks and explained to them how difficult a situation like this will be for all municipalities,” he said. “Unfortunately, I can’t make a move until we get this sorted. It is what it is. I’m hoping to get more info from our folks in Washington. So, stay tuned. There is an effort to tax tax-exempt bonds.”

The board concluded the meeting by recognizing the seriousness of the issue and the potential financial implications for future town projects.

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