FAIRFIELD — Town officials are hoping the third time’s the charm as they come back to voters with a new proposal to pass two budget articles that failed at June’s annual town meeting.

The latest proposal calls for funding the budgets for general government and capital improvements, equipment and reserve accounts through undesignated fund balance, instead of taxes. It also proposes using additional available fund balance to further offset taxation.

If approved, budget figures show that the portion of the municipal budget funded by property taxpayers would significantly decrease compared to last year — a stark difference from the 24% increase that would have come had voters approved the entire budget as originally proposed. 

Residents can learn about the proposal, question officials and share their opinions at a public hearing planned for 6:30 p.m. Wednesday at the Fairfield Community Center, 61 Water St.

A special town meeting to vote on the latest proposal is set for Wednesday, Oct. 14, at 6:30 p.m. at the community center. Unlike the annual town meeting in June and the special town meeting earlier this month, which were conducted via secret ballot at the polls, this special meeting will be a traditional, open forum.

Here are a few key points to know before then.

WHAT VOTERS REJECTED

In June, town voters approved most of an approximately $9 million 2026-27 municipal spending plan, which included a roughly 24% increase in the amount to be funded by taxation in the Town Council’s proposal. Officials attributed the increase to the increased cost of the Delta Ambulance contract and new fire department positions aimed at supporting a new town-run emergency medical transport service. 

Voters rejected a proposed $1,201,007 for general government and $260,000 for capital improvements, equipment and reserve accounts.

In the proposal put to voters earlier this month, town officials proposed $1,182,591 for general government and $250,000 for capital funds.

The articles failed to pass, again.

Under the town charter, any budget article not adopted at the annual town meeting reverts to the funding approved in the prior fiscal year until a new budget passes.

The general government line from the 2025-26 budget, records show, was approximately $1.18 million, about $55,000 less than what went to voters for review earlier this month. The capital line from 2025-26, meanwhile, was $265,000. That figure is actually $15,000 higher than the article voters rejected earlier this month.

THE NEW PROPOSAL

Officials are proposing appropriating $1,209,480 on general government and $280,000 for capital accounts.

The amounts, which are higher than June’s original proposal in both categories, would be funded entirely by undesignated fund balance.

On top of that, officials propose using another $1,210,520 from the undesignated fund balance to offset taxation. Voters already approved using $1.15 million at June’s town meeting.

In all, the proposal means using an additional $2.7 million in fund balance, for a total of $3.85 million, in the 2026-27 fiscal year, budget documents show.

ADDITIONAL FUND BALANCE

The undesignated fund balance totals municipal funds that are not otherwise assigned to designated accounts.

When the Town Council and budget committee began the fiscal year 2026-27 budgeting process, they did not know the undesignated fund balance as of the end of the previous fiscal year June 30, 2025, town officials wrote in a mailer sent to all Fairfield residents.

Since then, officials received their completed 2024-25 municipal audit, which showed a higher undesignated fund balance than anticipated.

“This increase is primarily due to funds that had been appropriated for staffing positions that remained vacant for portions of the fiscal year, as well as revenues that were higher than anticipated,” town officials wrote to residents. 

The audited undesignated fund balance as of June 2025 is listed as approximately $8.82 million in budget documents. 

Last year, the town used $1.45 million from it to offset taxation. Subtracting out three months of estimated operating expenses — what officials believe they need, at minimum, to remain in the undesignated fund balance — leaves about $4 million that could potentially be used in this year’s budget.

That is just a bit more than the $3.85 million now being proposed to be used.

IMPACT ON TAXES

Taxes have not yet been committed, and the tax rate has not yet been set. Town Manager Michelle Flewelling said the new proposal and special town meeting mean the commitment has been delayed from when officials usually do it each fall.

If the articles all pass at October’s special town meeting, Flewelling said, residents could be looking at a slight decrease in their tax bills. But that depends on year-to-year changes in property valuations.

Budget figures show that if the entire proposal passes as written next month, the net amount going to taxpayers to fund will be about $2 million less compared to the 2025-26 budget. In other words, the portion funded by taxes would decrease roughly 71%.

The municipal budget, however, is only one portion of what factors into residents’ tax bills, typically representing less than half of the total. Somerset County and Maine School Administrative District 49 assessments make up the rest.