LEWISTON — Officials are hoping to make some last-minute adjustments to next year’s budget in order to reduce the projected impact to taxpayers.

Ahead of a budget workshop Tuesday, the most up-to-date numbers for next year showed a 4% increase across municipal, school and county budgets, resulting in a tax rate increase of $1.29 per $1,000 of assessed valuation.

Councilors last week wrangled over 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 openly opposed using the fund balance, Finance Director Tracy Roy said she would look to find additional savings. The council will vote on the 2026 budget May 6.

As of now, the city budget accounts for 79 cents of the increase, while the school budget accounts for 27 cents, and county tax 23 cents. If approved, the tax rate would increase to $33.06 per $1,000 of assessed valuation.

“As we bring budget discussions to a close, we’re looking to find any additional savings that we can,” Mayor Carl Sheline said Tuesday.

Officials in Lewiston have worked from the start with a budget that has no new programs or staff, but are also looking ahead to next year when a revaluation is slated to be implemented and new value from the NECEC converter station project will be recognized.

During last week’s budget discussions, Councilor Tim Gallant argued that the city should use more of its fund balance in order to lessen the city’s portion of the tax rate.

To keep up with capital expenses, administration had already proposed using $6.9 million in fund balance. A city policy says the city should maintain between 8% and 12% of its total budget in the fund balance, and staff has said using $6.9 million would put the city at about 10%.

While staff said bond agencies look at how cities are using fund balance in making interest rate decisions, Gallant and Councilor David Chittim argued that the city could use a portion of its rainy day fund while still following the city policy.

Others, including Sheline, were wary of using the funds. Sheline called it “a bad idea from a fiscal management standpoint.”

“We dip into savings to fund our budget, next year we’ll have to do the same thing to avoid a larger tax increase,” said Councilor Scott Harriman.

Roy said that bond agencies look at the total amount of fund balance, but also what it’s being used for, in determining bond ratings.

Nate Libby, director of economic and community development, said the city has “worked hard to position itself” for a credit rating upgrade, by which it can receive more favorable interest terms, particularly in an uncertain bond market. He said drawing down the reserves could lower that rating.

Gallant countered that Lewiston’s “whole structure is going to change next year” with the incoming revaluation and NECEC project affecting valuation, and that bond agencies would “look at the full picture.”

After a lengthy debate, Roy said she would prefer to comb through the budget again and potentially propose other items that could be cut before considering using fund balance.

When reached Tuesday, Councilor Josh Nagine said the budget has been lean from the start, and that officials face the challenge of “maintaining a large city infrastructure where maintenance has often been deferred while attracting and retaining city staff in all departments.”

He said that, combined with Lewiston being a service center, “means we often run into a scenario where we have to balance all of that against the tax burden born by the constituents when our tax base isn’t expanding with the increase of costs.”

“This isn’t the budget where we make large investments in the future of the city, but I believe it does cover the basic costs without cutting currently offered services and maintenance expectations,” he said.