LEWISTON — City officials have settled on last-minute adjustments to next year’s budget that will reduce the impact to taxpayers ahead of a vote May 6.

Late last week, the City Council gave informal approval to proposed changes by finance staff that will lead to a property tax rate increase of $1 for fiscal 2026. As of last week, the proposed budget reflected a $1.29 increase.

If approved next week, and the school budget is given the stamp of approval by voters May 13, the tax rate will rise to $32.77 per $1,000 of assessed valuation.

Lewiston’s tax rate is among the highest in Maine. But a coming revaluation and new value from the New England Clean Energy Connect converter station project will change the equation in 2027.

Part of the reason the tax rate is so high is that the city has been assessing properties at much less than the actual 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.

While officials have called next year’s budget “lean” because it features several frozen positions and no new programs, they have also been trying to reduce the impact to taxpayers, who have been outspoken regarding increased taxes and the looming revaluation.

Earlier this month, councilors debated ways to reduce the impact to local taxpayers without cutting staff or services, with some calling for the city to use more of its fund balance — or rainy day fund — to achieve that.

However, after city staff and administration opposed using the fund balance, Finance Director Tracy Roy said she would look to find additional savings.

Last week, Roy presented her findings to councilors, stating that the resulting cuts brought the tax increase down to $1, which councilors readily supported.

The city is also using roughly $7.4 million in fund balance next year, including $400,000 toward the Lincoln Street shelter under development by Kaydenz Kitchen.

A city policy says the city should maintain between 8% and 12% of its total budget in the fund balance, and Roy said the use of $7.4 million would put the city at about 9.7%.

Staff has previously said they are reluctant to use too much fund balance, especially for recurring expenses, because bond agencies look at how cities are using fund balance in making interest rate decisions.

Councilors were largely in support of the changes and the final numbers heading into next week’s vote.

Councilor Josh Nagine said he continues to be concerned about deferred maintenance across the city, which he said could “create emergencies that cost more in the long term.”

He said Monday that he had hoped the council could deliver a “net neutral” budget to avoid another tax rate increase ahead of the revaluation, but that would’ve meant “cutting programs our community expects or the city is obligated to provide,” or cutting staff.

“I do, however, believe that the city and school budgets are fair and responsible and take into account the challenging landscape we find ourselves regarding the increased costs of all things,” he said.

Mayor Carl Sheline, who was absent from last week’s budget workshop, called it “a defensible budget” Monday.

“We were able to keep all of our current staff, which was a top priority for me, while at the same time holding down costs,” he said. “I want to thank city staff and my fellow members of the council as we worked together to help craft a budget that will meet the needs of our city.”