Town of Cape Elizabeth
BUDGET REVIEW SCHEDULE FY 2026
 Need help understanding the budget process?
Prior to his departure as interim Town Manager, Michael McGovern reviewed the Financial Principles of the municipal budget at a September 4, 2024 Town Council workshop. Below are excerpts from the presentation.
General Fund: The General Fund s the general operating fund of the Town. All general tax revenues and other receipts that are not allocated by law or contractual agreement to another fund are accounted for in this fund. Most governmental services are provided by the General Fund including general government, public works, public safety, education, recreation, health and welfare, and assessments from other governmental agencies.
Special Revenue Funds: Special revenue funds are established to account for resources obtained and expended for specific purposes that are restricted or committed by law or administrative actions.
Capital Project Funds: Capital project funds are established to account for resources obtained and expended for the acquisition of major capital facilities.
Key Town Charter Provisions
Sec. 1. Fiscal Year. The fiscal year of the town government shall begin the first day of July and shall end on the 30th day of June of each calendar year, or such other fiscal year as the council may decide. Such fiscal year shall constitute the budget and accounting year as used in this charter. The term "budget year" shall mean the fiscal year for which any particular budget is adopted and in which it is administered.
Sec. 2. Preparation and submission of the budget. The town manager, at least 75 days prior to the beginning of each budget year, shall submit to the council a budget and an explanatory budget message. The budget authority of the council shall be limited to the final determination of the total appropriation to be made to each of the several offices, departments and agencies of the town.
The budget shall contain:
1. Statement of financial condition. Exact statement of the financial condition of the town.
2. Statement of appropriations. An itemized statement of appropriations recommended for current expenses and for permanent improvements, with comparative statements in parallel columns of estimated expenditures for the current year and actual expenditures for the next preceding fiscal year. An increase or decrease in any item shall be indicated.
3. Statement of estimated revenue. An itemized statement of estimated revenue from all sources, other than taxation, and a statement of taxes required, comparative figures from current and next preceding year.
4. Other information, as may be required by the council.
Sec. 6. Expenditures and departmental revenue. The budget for all departments shall include all proposed expenditures, and the council shall make a gross appropriation for each department for the ensuing fiscal year. The gross appropriation for each department shall not be exceeded except by consent of the council.
Sec. 8. Transfers of appropriations. At the request of the manager and within the last 3 months of the budget year, the council may by order transfer any unencumbered appropriation, balance or portion thereof between departments.
Sec. 9. General fund appropriations. Every general fund appropriation shall lapse at the close of the fiscal year to the extent that it has not been expended or encumbered, except that an appropriation for a capital expenditure shall not lapse until the purpose for which it was made is accomplished or abandoned.
Financial Decisions Apart from the Annual Budget:
Carry Forward Balances Authorized by the Town Council. These constitute encumbrances approved before the end of the Fiscal Year or before the commencement of the annual audit.
Appropriations from the Unassigned Fund Balance.
Bonding Decisions, Union Contracts, Fee Setting, Myriad Decisions Having Budgetary Impact and Impacting Staffing Requirements, Fund Balance Policies, Investment Policies etc.
Unassigned Fund Balance
The current target unassigned municipal fund balance is equal to 12.50% of annual general fund operating revenues for the most recent fiscal year. If the unassigned fund balance falls below its target level, an interim objective is to increase as a percentage of operating revenues the unassigned fund balance every year.
WELCOME, ASSESSOR DESJARDINS!
The Town Council has appointed Nicholas Desjardins as the Town Assessor. The Town Council voted in a Special Meeting on December 16, 2024, to approve the hiring committee’s recommendation. The committee, headed by councilor Stephanie Anderson, began its search in November following the resignation of former assessor Clinton Swett.
Desjardins, whose first day with the Town was Monday, January 6, 2025, comes to Cape Elizabeth from Biddeford after serving as their City Assessor since 2022. Before that, Desjardins served as Assessing Director for Biddeford and Saco from 2018 to 2022. Certifications include a Level 2 Certified Maine Assessors License, Real Estate Appraisers License, and active International Association of Assessing Officers (IAAO0) memberships, including the Maine Chapter.
Please join us in welcoming Desjardins to the ACP Office!
TOWN COUNCIL
* News from January 8 Workshop with State Legislators
State Senator Anne Carney and State Representative Michelle Boyer attended the Town Council and School Board Joint Workshop on January 8, 2025. The discussion highlighted the legislators' plans for the upcoming session to address critical issues impacting Southern Maine communities. As the Fiscal Year 2026 budget process begins in earnest this month, the conversation provided valuable insights to guide the council and school board in evaluating key budget drivers.
Carney, now in her eighth year in the legislature, previously served two years in the House of Representatives before moving to the Senate, where she is currently in her third term. During her time in the Senate, she served on the Judiciary Committee, including as its Senate Chair. Carney expressed pride in representing Cape Elizabeth and looks forward to the upcoming legislative term. She acknowledged the state's challenges, particularly those related to the budget, property taxes, and education construction funding. She believes that legislators statewide share these concerns, which affect Cape Elizabeth, fostering cooperation across suburban, urban, and rural regions.
Currently, Carney is working on legislation focused on energy pricing and access, particularly for low-income individuals, seniors, people with fixed incomes, and those with young children or disabilities. The goal is to help these vulnerable groups afford electricity and prevent their power from being shut off. Last year, she helped strengthen the Maine Dependent Tax Credit, increasing its refundability and expanding eligibility to include care for dependent adults, not just children. Additionally, she supported extending significant income tax breaks on pension income.
Addressing property tax issues in Southern Maine, where rising property valuations affect many areas, Carney is co-sponsoring legislation that would create a local-option food and lodging tax. This tax would allow municipalities with high tourism to impose a tax, with the revenue explicitly earmarked for property tax relief, providing targeted financial support to affected communities. Carney highlighted three key actions to ease the property tax burden: fully funding revenue sharing, ensuring the state's share of the education formula is funded at 55%, and providing support for childcare providers. The enhanced Property Tax Fairness Credit provides targeted property tax relief by linking credits to income. This approach shifts the tax burden from property taxes to income taxes while excluding low-income individuals from the shift. A special program was also introduced specifically for older Mainers, making the credit an effective tool for supporting those with limited financial means.
Boyer, the newly elected representative for most of Cape Elizabeth, serves on the Health Coverage, Insurance, and Financial Services Committee. She stated that with her background in banking and healthcare, this committee is an ideal fit for her. Her primary focus for the current legislative session is to work on public school construction funding, aiming to make changes to the program so that more schools can receive state support for construction.
In response to questions about the state’s school funding formula, Boyer remarked that while it is frequently reviewed and challenged, it hasn’t been adjusted in some time because of its widespread impact across the state. Adjusting it would shift costs from property tax to income tax, leaving policymakers in a difficult position between the two taxation systems. Boyer acknowledged that school construction funding poses a significant challenge, particularly in Southern Maine, where communities struggle to finance projects independently due to limited state support. Currently, the state funds only one school per year, which many consider inadequate. Efforts are underway to address this issue. A task force is exploring ways to distribute existing funds more effectively, potentially funding partial projects to support more communities.
Boyer noted that there is considerable focus in Augusta on addressing school construction funding and that a task force established by the governor is expected to release a report by mid-April. While the group is not considering increasing the funding pool, it is exploring ways to distribute existing funds more effectively, such as supporting multiple schools annually instead of just one. Additionally, Boyer mentioned that she is sponsoring a bill to revise the funding formula, ensuring the state covers at least 25% of construction costs, with adjustments based on district funding levels. While some efforts aim to increase the overall funding pool, the emphasis remains on creating a fairer distribution system to meet statewide needs.
Town Council Meeting - Monday, January 13 @ 7 PM
The agenda includes:
- Finance Committee Report, from Finance Chair Elizabeth Scifres
- Town Manager's Monthly Report, Pat Fox
- Review of Draft Minutes from
- December 9, 2024
- December 12, 2024
- December 16, 2024
- Item #25-2025 Consider 2025 Uses for Fort Williams Park
- Item #26-2025 Consider Proposed Fee Increases for the Riverside Memorial Cemetery
- Item #27-2025 Consider Scheduling a Public Hearing on Town Center Amendments
- Item #28-2025 Acknowledge Receipt of the Property Tax Assistance Program Annual Report
This meeting will be streamed on CETV LIVE, provide optional remote participation, and be available for on-demand viewing.
Town Council Workshop - Wednesday, January 15 @ 7 PM
 REIMAGINE ROUTE 1
How would you improve Route 1? Greater Portland Council of Governments is conducting a study of Route 1 from Biddeford to Freeport with the goal of improving the accessibility of the corridor for pedestrians, bicyclists, transit users, motorists, and freight operators. This study will look at everything from safety improvements to potential charging locations and will include assessments of key areas for potential housing and mixed-use development.
If you’re interested in staying up-to-date about the project, visit our project page to sign up for updates. By signing up, you’ll be the first to know when there are opportunities to get involved!
1. 2025 DOG LICENSES NOW DUE!
2. SHORT TERM RENTAL RENEWALS DUE JANUARY 31
Short Term Permits expire on December 31st of each year and must be renewed by January 31st. The permit application fee is $500 if renewed by January 31st OR $1,000 if submitted on or after February 1st.
Short Term Rental FAQs can be found at: https://www.capeelizabeth.com/ShortTermRental
You can renew your permit two ways:
- Use our Online Permit Program located at capeelizabeth.patriotpermitpro.com OR capeelizabeth.com / services / CEO permitting system to launch the program. Credit cards are accepted.
- Visiting the Code Enforcement office located on the 2nd floor of the Town Hall, 320 Ocean House Road. Checks or cash accepted only.
Should you have any questions, please contact the Code Enforcement Office at 799-1619.
Cape Elizabeth Fire and Rescue numbers for 2024
The Cape Elizabeth Fire Rescue Department answered 1,635 calls for service in 2024. This is more than in 2023, which received 1,441 calls. Fire Chief Steve Young attributes the increase in part to severe weather events in 2024.
The calls consist of Fire, EMS, WETEAM and Mutual aid given to South Portland. The majority of responses were medical in nature.
Polar Day Plunge Success! Thank you WETeam!!
The Annual Kettle Cove Polar Plunge went off as planned despite the forecasted inclement weather on January 1st. By the time Fire and Rescue blew the horn at 11 AM, over 60 people jumped into the water. For some, it was their first time jumping into the ice-cold winter waters of Maine to commemorate a new year. For others, plunging in the water is an old tradition offering an opportunity to wipe the slate clean; one plunger said, "It's so chilling and exhilarating, but honestly, a great way to kick off a new year!" By the time the Fire and Rescue
Prior to the horn, Cape Elizabeth's Fire and Rescue's very own Water Extraction Team (WET) prepared the area for safety with three divers in the water well beyond the plungers and a few on land to assist in the event of an emergency. Special thanks to Lieutenant Nate Perry and his for their support of this event benefiting Project Graduation. Over $800 were raised through this event alone!
As always, donations received at the Polar Plunge benefit CEHS Project Graduation. Project Graduation provides our CEHS seniors a safe and memorable way to spend together as a class on Graduation Day.
It's not too late to donate on to the Polar Plunge event on behalf of Project Graduation. Donations are still being accepted through this Venmo account, indicating PG2025. Alternatively, checks made out to CEHS / Project Graduation 2025 may be mailed to the high school at 345 Ocean House Road. |
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SAND FOR SENIORS
Sand buckets to make driveways and sidewalks safe are available to Cape Elizabeth senior citizens. Please call or email Officer Darin Estes:
207-767-3323 EX 208 OR darin.estes@capeelizabeth.org
COMMUNITY EVENTS
Do you have an event that you would like featured? Just email our Public Communications Coordinator at susana.hubbs@capeelizabeth.org
COMMUNITY LINKS
Cape Elizabeth Community Services • Cape Elizabeth School Department • CETV On Demand •. Thomas Memorial Library •. Meetings Calendar
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