Hallowell City Council members approved a first version of next year’s budget at Thursday night’s meeting.

The $8.6 million budget, of which about $3.3 million is planned for city spending, represents an approximate 1.5% increase in city-level expenditures for the 2027 fiscal year. A final budget is expected to be voted on at the council’s June 22 meeting.

The Kennebec County and Regional School Unit 2 budgets will minimally change tax bills this year: Hallowell’s portion of the county tax collection decreased by about 0.2%, and RSU 2’s budget calls for a 0.32% increase to local taxpayer contributions.

On Thursday, the council voted to add $50,000 to the proposed budget for ordinance software and Hall-Dale Elementary School playground improvements, and set aside $110,000 from a sheltered fund for a new sidewalk snow removal machine.

Here’s what else to know at this point about the city’s spending plan.

NO FIFTH COP

The city council’s finance committee did not come to an agreement on funding a fifth police officer position, a contentious debate in the past two budget cycles after an unexpected tax increase in 2024. The committee — At-Large Councilor Scott Cooper, Ward 2 Councilor Michael Frett and Ward 4 Councilor Danielle Obery — has met regularly since January to develop the budget.

Former Police Chief Christopher Giles and City Manager Ross McLellan recommended adding the fifth position to reduce strain on scheduling. Between salary, benefits, insurance and equipment, the position costs about $110,000.

With just three patrol officers, McLellan said Hallowell police cannot maintain staffing at all times and must rely on the Kennebec County Sheriff’s Office or Maine State Police to respond to calls.

“There is an expectation in this city, whether most people realize it or not, that we have officers on duty, essentially 24/7,” McLellan said. “That’s not the current staffing level that we’re at.”

Five of the seven councilors declined to add the position.

Ward 5 Councilor Lauren McPherson said she questions whether the city, being just 6 square miles, has an obligation to provide 24/7 police service. Ward 3 Councilor Benjamin Gagnon said the council should have a deeper conversation with Hallowell residents about the feasibility and need for the fifth position before deciding to fund it.

“This is a policy discussion that needs to happen: Do we want to be a city that has 24/7 coverage or not?” Gagnon said. “If we do, then we should fund it. This conversation always happens. It’s always a budget question of whether to fund it. But in the interim, before next year comes around — inevitably, to the city manager’s point, the police chief will probably recommend another officer — we should be having the policy discussion.”

Only Obery and Frett voted to fund the position.

STILL IN SHADOW OF 2024 INCREASE

Cooper, the finance committee chair, said he looked at the fifth police officer position — and other contentious points — through the lens of the bottom line.

If the position were added, it would translate to a small tax increase. That’s why he voted not to add it, he said.

“One of the goals of the large tax increase two years ago was to try to keep these budgets without having any more tax increases across the city,” Cooper said.

The 2025 budget unexpectedly raised taxes by about 20%, causing outrage among property owners. City councilors attempted to reverse it — a process the city’s attorney later said was illegal.

In light of the previous year’s increase, councilors cut 15% in city spending in the 2026 budget. Mayor George Lapointe said at the time that the cuts were “a step in the right direction.”

NO FINAL NUMBERS YET

Hallowell doesn’t yet have final figures for expected revenue from the city’s assessor, Cooper said.

Without those figures, taxpayers can’t know the impact on their property taxes, but the city would need to raise about $6.6 million from taxpayers, up just over $100,000 from last year.

The budget requires two more public readings before its final approval. Those readings are scheduled for June 8 and June 22 at City Hall, at 1 Winthrop St.