LEWISTON — City councilors and School Committee members are just getting started on talks for the 2024-25 fiscal year budget with an initial outlook that would raise the property tax rate by more than $5 per $1,000 of assessed valuation.

During a workshop Tuesday, City Administrator Heather Hunter gave an overview of the starting points for the city and School Department as negotiations begin.

The initial municipal budget of $60 million would be an increase of $4.19 million, or 7.5%, while the school budget is proposed to increase by $13.8 million, or 13.6%. If approved as is, the total budget would raise the property tax rate by $5.07 to $35.07 per $1,000 of assessed valuation. The school budget would account for $4 of that increase.

However, it’s common practice for municipal and school officials to include new personnel or programming requests in the initial budget, only to be whittled down by elected officials. Hunter told the City Council that during last year’s talks the initial proposed tax rate was $34, but it was ultimately reduced to $30.

“So this is just that starting point,” she said.

The City Council will continue its budget workshops Thursday and meet with the School Committee next week.

During the initial overview, Hunter summarized some of the larger costs affecting the municipal budget, including personnel and capital expenses. While revenues are expected to increase by $1.6 million, expenses are also rising for contractual services, fixed charges, and joint agencies with Auburn.

She said half of a $2.6 million increase for fixed charges is General Assistance rent. While she said the number is “staggering based on prior years,” the city is reimbursed 70% from the state, which will be reflected on the revenue side.

Hunter said budget talks will also include consideration of $1.7 million for 22 new positions and other costs that were part of departmental requests. She said even if those positions were ultimately funded by the council, Lewiston would still be 37 employees short of the 1994 peak.

Other proposed costs include a community sports aide position and body cameras for code enforcement officers.

The council will also have to decide how much of its Capital Improvement Plan to bond, which stands at $18.4 million. Hunter said the council would have to cut roughly $13 million in bonding in order not to trigger a rule that would require a council supermajority to approve.

In the coming weeks, the council will discuss each section of the budget separately, including the capital bonding.

The city is expecting a $55.1 million increase in assessed valuation next year, Hunter said.

The city is also prepping for its first full revaluation since 1988, which is slated to become effective in fiscal year 2027. During previous budget talks, officials have argued that Lewiston’s high property tax rate is a deterrent to economic development, even as assessments have remained very low.

At the School Department, revenues are expected to increase by $4 million, with a carry forward of $5.1 million. However, the initial budget increase of $13.8 million will likely leave a lot of work for the School Committee.

Asked by councilors, Hunter said the school district’s philosophy this year was to build all new programs and services into the base budget ahead of committee deliberations.

The Androscoggin County assessment rose 16.1%, which will add 19 cents to the tax rate. Councilors said that increase doesn’t include funding toward plans for a new county public safety building.

According to Hunter, no rate increases for Lewiston utilities are recommended.

The council and School Committee will meet Monday at The Green Ladle at Lewiston Regional Technical Center to discuss budgets

Asked if the council will be fed dinner, Hunter said, “No. They’re cutting the budget.”

The initial budget can be found at www.lewistonmaine.gov, or by clicking here.