Calais council votes 4-3 to sign armory purchase agreement

For more than two years the City of Calais has been waiting for the State of Maine to make a final determination on the use of the National Guard Armory on Calais Avenue. About three months ago, the city was notified that the state would be selling the armory and that the city would have the right of first refusal as required by state law, with the purchase and sale agreement received last month.

Following an executive session on October 8, the council voted 4-3 to authorize the city manager to sign the agreement on behalf of the city. Councillors Eddie Moreside, Michael Sherrard and Bill Quinn voted against the motion. The council committed to a public discussion on the purchase at a future council meeting to provide the public with details surrounding the decision. The closing would be December 31, pending final council approval.

During recent discussions on the purchase, councillors Sherrard and Moreside have protested the impact on local property taxes of the $578,000 purchase price, plus the future expenses to relocate from the city building on Church Street. City Manager Mike Ellis has provided the council with potential funding sources, including federal grants and congressional earmarks, although the deadline for applying to the delegation has passed for the current funding cycle.

Ellis has been requested by the council to complete a cost analysis of the renovation and relocation costs. Tentative plans include relocation of the recreation department and police department into the armory, which would require a dedicated entrance for the police. Additional renovations would be needed to relocate the staff from the current city building. Longer term plans include renovating the garage building on the property for the fire and EMS department and, potentially, the public works department.

Ladder truck funding accepted

The fire department was notified that they have received a $1 million grant from FEMA under the Assistance to Firefighters Grant Program. After mandated fees and administrative costs, the city has $952,381 in grant funding for the purchase of a new ladder truck to replace the current 41‑year‑old ladder. Following a discussion of various options and costs the council voted 5‑2 at the October 8 meeting to accept the funding, with councillors Sherrard and Moreside opposed due to the impact of the city share of between $350,000 to $600,000 on the local property taxes.

City financial consultant Hank Farrah provided the council with an update on the municipal enterprise funds. Enterprise funds are budget categories that operate separate from the general fund and are expected to be self‑funding. The ambulance fund has operated at a loss every year, with a deficit of $395,146 for fiscal year 2026 based on the unaudited financial statements and an accumulated deficit of $1,029,598. The water department showed an operating deficit of $59,126, and the sewer department $494,832. Farrah recommended that the city consider restructuring the city budget and at a minimum include the ambulance budget as part of the fire department in the general fund. Farrah noted that enterprise funds are intended to be self‑funded and not rely on property taxes but that he has found across his municipal clients that, due to the nature of ambulance reimbursements and payments, this is not a realistic model. Bringing the budget under the general fund improves the financial accounting, as the deficit is already paid by the city using the line of credit; however, the city has used a substantial amount of the available credit.

The council approved the change to a business zone for a small parcel at Baring and Boardman streets following a public hearing. The zone change was for a 40' by 40' parcel adjacent to the existing business zone to permit construction of a fiber optic connectivity station. The council also approved the local election warrant for the November 3 election.