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OLDTOWN — The Oldtown City Council passed a $567,295 budget for the 2026–2027 fiscal year, a decrease of $383,235 from 2025– 2026, at a Monday, Aug. 24 budget hearing.
The budget is decreasing significantly now that the city has transferred around $300,000 in urban renewal tax revenue to the West Bonner Water and Sewer District, a payment toward the city’s loans.
City clerk-treasurer Alicia Ehrmantrout said the city was able to do so after submitting its audits for 2022, 2023 and 2024 to the state.
She is hoping the state will give the city a waiver on its audit for 2025, which is still in progress.
“They should release any money that’s being held from property taxes, and then they should allow us to levy this year,” Ehrmantrout said at the meeting. The city is budgeting $30,713 in property tax revenue but will receive 3% less than that if not allowed to levy.
Health insurance expenditures have also decreased, as some employees in the water-sewer department are young and cost less to insure, Ehrmantrout said. She also budgeted less for propane, internet and telephone costs, as the city over-budgeted for those items last year. On the other hand, road and bridge money has increased by about $1,300 to $2,000. Equipment and reserves are increasing from $25,000 to $70,000, as the city anticipates a need to replace or repair some equipment.
“Our budget will stay lower now because the money is being transferred at every year,” Ehrmantrout said.
After the budget hearing, the council reconvened as the Oldtown Urban Renewal Agency and passed a budget of $165,000 for the 2026–2027 fiscal year.
The agency expects to receive $70,000 in property taxes, with a carryover of $95,000 from prior years. Of that, $149,690 will be transferred to the West Bonner Water and Sewer District toward the city’s loans. The city is spending another $13,310 on accounting and administrative costs associated with its audits, as well as another $2,000 on a flat audit fee for this year.
“It’s just because we’re getting caught up,” Ehrmantrout said of accounting and administration. “This will probably drop to $2,000 or $5,000.”
