It’s almost budget season, and initial budget overviews show taxpayers in Greater Bangor communities will likely be asked to pay more.
First glances at budgets in Old Town, Orono and Brewer show rising costs for staff and services, coupled with undetermined school budgets and an increased county tax. Many of the rising costs stem from emergency services being more expensive and cost of living adjustments for employees.
Old Town and Orono increased their budgets in 2025 due to similar cost jumps, while Brewer decreased its municipal budget but still had an overall property tax increase due to school and county budgets. This year, all three may see increases that are handed down to residents.
Although final budgets are not due until June, councils in the three communities have either already started their budget discussions or are beginning to this month. First looks from the communities show some costs increasing by 10% or more.
In Brewer, which currently has its lowest property tax rate in 30 years, the City Council has started the budget process but has not made any decisions.
Nevertheless, City Manager Eric Glidden said there were notable jumps in expenses in health insurance and public safety, which increased by 17% and 10%, respectively. Glidden also pointed out that Brewer will be paying $127,000 more, an 8% increase, to the county because of the budget increase.
“With revenues flattening and expenses continuing to rise due to inflationary pressures and other factors, the city expects another challenging year in its work to minimize the impact of these negative trends on taxpayers,” Glidden said.
Old Town City Council starts the city’s budget process at its meeting on Monday, but City Manager Bill Mayo said the council will face the same challenges Brewer and Orono are experiencing.
“I don’t see any outliers [in this budget], but we will certainly be impacted by the same factors such as [cost of living adjustment] increases and rising cost of services that Orono and Brewer are experiencing,” Mayo said.
Old Town’s property tax spiked by 10% last year despite 11 full-time and four part-time employees being cut. The city’s budget actually decreased, but the loss of property and business tax from the paper mill’s closure pulled $2 million from revenue.
Orono presented a “big picture” budget during Monday’s council meeting, one and a half months before the town started its process last year.
The budget showed a roughly 12.5% increase to the town’s expenses. Most of the increase stems from a more than $1.1 million increase in operating expenses.
Changes to pay scales, insurance and other benefits along with “post-COVID inflation” have caused the budget to increase, Town Manager Clint Deschene said.
The county’s increased tax rate will also cost Orono more than Brewer.
Penobscot County’s tax increase will cause Orono to pay roughly $231,000 more than last year, a nearly 23% hike, Deschene said.
Expenses and other figures in the preliminary budget aren’t final, with the Town Council not approving a budget until June, he said. Town expenses are going to change throughout the budget process and have already been tweaked, Deschene said.
“We’re going to make changes. We’ve already made changes to the draft that has gone out. We’re refining many things,” he said.