PORTLAND, Maine — Portland is facing a budget gap larger than in recent years and could consider spiking property taxes up to nine percent. The move comes as pandemic relief funds dry up and Maine's largest city looks to other revenue sources.
On Monday's city council meeting, Portland's Finance Director Brendan O'Connell said the $20-million gap in revenue is concerning.
"I will say, this is the biggest challenge we have faced in my time," O'Connell said. "We know we have a lot of work to do to get that number down."
According to projections shared with the council, a nine-percent increase in property taxes could average into a $400 to $500 increase in taxes.
Mayor Mark Dion said this would impact not only homeowners but businesses in Portland as well. He added that Portlanders who rent could see increases as well.
"I'm not sure how we get around those deficits we may have to reduce services in certain sectors and operations," Dion said.
Dion said the situation is dire, noting he has not seen a budget gap this significant in his years working in the city.
"We're in a very tough spot right now... It's going to be dicey, very dicey," Dion said.
The mayor and City Manager Danielle West plan to lobby in Augusta for more money. They are looking for at least $8 million from general assistance bills from lawmakers, but would like to see more.
Mayor Dion said Portland continues to grow and is depended on as the hub for social services in the state.
"Whether it's in the issue of immigration... refugees, schools trying to meet the needs of those in those situations... the unhoused, they come to Portland. Yes, there are other cities, but none of them are to the scale and the cost as we are in Portland," Dion said.
Dion said if money from Augusta is not secured, taxes could spike and services around the city could slow.
He is suggesting Portlanders show up to city council meetings and voice their priorities for what services they think are important, and give input into how the city should structure its budget.
A draft budget will be presented to the city council on Feb. 22, according to Dion.