The town of Harpswell is proposing a budget of just over $7.8 million for 2025, an increase of about 6.5% from 2024.
Under the proposed budget, roughly $6.3 million would go toward operations, a 7.8% increase, while about $1.5 million would be designated for capital projects, a 1.6% increase.
It isn’t yet known how the proposed increase would affect property taxes. The town’s current property tax rate is $6.36 per $1,000 of valuation, up 26 cents, or 4.3%, over the previous year. Harpswell has one of the lowest property tax rates in Maine.
Some of the largest anticipated cost increases are in the areas of employee benefits and public safety. Those increases would be partially offset by a decrease in debt payments and funds for special projects.
One of the biggest line-item increases would be for additional emergency services staffing. The town is proposing a 36% increase in municipal firefighter costs — from $252,539 to $343,109 — to add daytime shifts on Saturdays and Sundays.
In addition, the town anticipates a 7.2% increase in its contracts with Cumberland County for patrol deputies and dispatch services. That figure would increase from $483,379 to $518,118.
The cost of benefits for town staff would increase by nearly 17% to $651,646 under the proposed budget. Most of the hike stems from an anticipated increase in health insurance costs, town officials said.
Harpswell is budgeting $421,300 for the 24/7 paramedic service run by Mid Coast Hospital, up $45,455 or 12.1%. Town Administrator Kristi Eiane attributed the proposed increase to a higher contract price from Mid Coast. The price increased by 13.7% in 2022, 10.7% in 2023, and 3% in 2024.
Eiane attributed the recent trend toward higher annual increases to rising personnel costs for paramedics.
Harpswell also proposes adding about $1 million to its capital reserves, including $400,000 for road construction, $200,000 for emergency vehicles, and $200,000 for improvements to the recycling center. The town added $955,000 in 2024, and current reserves total about $2.1 million.
Proposed road projects in 2025 include the reconstruction of Peabody Road and repairs to Little Island Road and Ocean Street, which were damaged in the January 2024 storms.
There are a few areas in which the town anticipates a decrease in costs. Foremost among them are debt payments for past projects. Harpswell expects those payments to ease by about 9.6% to $515,000, following last year’s payoff of a 2014 loan for road projects.
Harpswell also is proposing a 44% decrease in its budget for special projects. That figure would drop from $150,000 in fiscal year 2024 to just $84,000. The 2025 figure includes $44,000 toward the cost of a townwide property revaluation, set for completion in 2026; $20,000 for a fund to remove marine hazards; and $20,000 for a wage and salary study to ensure Harpswell remains competitive in recruiting and retaining quality staff.
The Harpswell Select Board has recommended approval for all the major budget items.
Voters will ultimately decide whether to approve the proposed spending at the next annual Town Meeting on Saturday, March 8, at Harpswell Community School.
CORRECTION: An earlier version of this story incorrectly reported that the proposed budget is for a fiscal year beginning July 1. The proposed budget is for the 2025 calendar year.
