FAYETTE — The Fayette Select Board hosted a public hearing on April 29 to present the town’s proposed 2026 municipal and school budgets and to preview the June 10 annual town meeting where residents will vote on the final warrant.

Town Manager Mark Robinson opened the hearing by explaining the process. “This is the public hearing portion,” he said. “There will also be a public meeting two weeks from tonight, when the selectmen review warrant articles. That is a very public process.” He added that the Fayette School Committee will finalize their portion one week later at Fayette Central School.

The proposed general government budget for fiscal year 2026 is $432,888, up from $419,721. The public safety budget increased to $125,100 from $113,780. Debt service rose sharply to $361,057 due to payments on a $1.5 million bond approved last year to fund road improvements. “That provides the money to pay the principal and the interest on that loan,” Robinson said. The town’s public works budget remains level at $524,976.

Due to a healthier and smaller staff, the town will not request any new taxpayer funding for the health care reserve account in 2026. “We are not asking the taxpayer to contribute to that reserve,” Robinson said, noting the fund was adequately supported by past contributions.

Solid waste costs for the Readfield Transfer Station increased slightly to $98,999, up from $93,740, and include Fayette’s share of the annual hazardous waste collection event this July.

The library and recreation budget remains unchanged at $27,129, with $5,000 raised by taxpayers for recreation and $22,129 allocated to support the Underwood Memorial Library. “They have been improving the library; new well and bathroom, no more port-a-potty,” Robinson said. “We have finishing touches being done, septic system will be in soon. The people at the library and the trustees and Heather Chalmers have gone above and beyond with other volunteers. It is remarkable.”

The total municipal budget does not reflect the use of town surplus, which the Budget Committee recommended. Select Board members will decide that on May 13 during final budget review. The town’s current tax rate is $13.53 per $1,000 of valuation. Robinson noted that a factor revaluation is underway following state guidance. “RJD Appraisal said we are at 83% across the board,” Robinson said. “The waterfront folks will be hit the most.” He explained that the revaluation, driven by rapidly rising property values, will likely redistribute the tax burden more equitably and could result in a lower mil rate.

The county tax assessment rose to $333,811, a 26.25% increase from $264,400 in 2025, reflecting a higher state valuation for Fayette. “That is governed by what the state says,” Robinson said.

The proposed school budget includes a local taxpayer request of $2.2 million up from $2.08 million in FY2025. Superintendent Courtney Lyons attributed the rise to a nearly $130,000 loss in state funding due to the town’s increased valuation. “Our local share has to increase $56,000, which puts us in a deficit,” Lyons said.

Lyons added that the district plans to use $200,000 from its reserve to help offset the shortfall. “We’re always looking for grant money. We are doing everything we can to build up the reserve fund,” she said.

Other increases in school costs include a $123,000 year-over-year rise in expenses, partially due to the school taking over its own food service operations, which cost about $30,000 annually. Lyons noted efforts to reduce those costs and establish reserve accounts in case federal support lapses.

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