Caribou City Budget Requests Rise Nearly 5%

Caribou city councilors discuss a proposed $13.6 million expense budget and $2 million capital request for 2026.

Published on Feb. 9, 2026

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Caribou city councilors heard initial departmental budget requests for 2026 that marked a 4.6% increase over the previous fiscal year, totaling $13.6 million in expenses and $2 million in capital requests. Major expenses include a new $625,000 ladder truck for the fire department and $475,000 to remount several ambulances.

Why it matters

Caribou's municipal budget accounts for around 40% of local tax bills, so any significant increases can impact residents. The city is balancing growing public safety needs with other departmental requests and the burden on taxpayers.

The details

The $13.6 million expense budget is roughly $575,000 higher than in 2025, driven by a 9% increase in the police and fire department budgets for salaries, overtime, and retirement costs. The $2 million capital request is nearly double the previous year, largely due to the new ladder truck and ambulance remounting.

  • The city council will hold a budget workshop on March 9 to work towards passing a budget for the new fiscal year.
  • The $625,000 ladder truck purchase will require voter approval in a November referendum, as it exceeds half a million dollars.

The players

Brian Lajoie

Caribou Fire Chief, who discussed the department's capital requests including the new ladder truck.

Dan Bagley

Caribou city councilor, who responded to the fire chief's comments about the large capital requests.

RSU 39

The school district based in Caribou, whose budget increased by nearly $1 million for the third year in a row but is set to decrease its burden on local taxpayers.

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What they’re saying

“It's a huge amount,”

— Brian Lajoie, Fire Chief (bangordailynews.com)

“But it's needed,”

— Dan Bagley, City Councilor (bangordailynews.com)

What’s next

The city council will hold a budget workshop on March 9 as it works toward passing a budget for the new fiscal year. The $625,000 ladder truck purchase will require voter approval in a November referendum.

The takeaway

Caribou is balancing growing public safety needs with other departmental requests and the burden on taxpayers, as the municipal budget accounts for a significant portion of local tax bills. The city will need to carefully weigh these priorities in the upcoming budget process.