Southwest Harbor Select Board Confronts Budget Pressures and Talks Capital Projects

Harbor Committee Members Split on the Value of Zoom Meetings

Carrie Jones

Jan 08, 2026

Select board member Carolyn Ball. File photo.

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SOUTHWEST HARBOR—Finances were at the forefront of the Southwest Harbor Select Board business during its January 6 meeting.

First, Town Manager Karen Reddersen gave a quick review of the draft budget for the town’s next fiscal year. The board will also meet with the Pemetic School Committee about the elementary school budget, this Thursday at 6 p.m.

Reddersen said that the current draft budget has a 26% percent increase with an 11.44% mill rate. “We recognize this is a significant increase.”

Police and dispatch salaries increased with the union contracts. Public works was also renegotiated. The Hancock County budget and its increases also is expected to increase.

Board Chair Noah Burby said that municipalities don’t have leverage once the warrant has been issued by the county for its services.

This is similar to the school board’s budget, select board member Natasha Johnson agreed.

In regular business, the board members authorized the town manager to invest $125k in CD funds with Bar Harbor Bank and Trust.

According to Reddersen, “A current six-month CD with Bar Harbor Financial Services in the amount of $125,000 has matured with bond interest in the amount of $2,969.71.”

Johnson said that she’d like to move toward longer CDs than the originally suggested 13 months. Carolyn Ball said it was a very modest investment. The board agreed to have $125,000 into a 24-month CD at the best rate available as of January 7, 2026.

At the last meeting in 2025, the board accepted a bid of $2,544,893 for the public works replacement garage.

“The town has received approval for Congressionally directed funding (CDS) in the amount of $2,415,000,” Redderson explained. “An additional 25% funding match needed for the project is estimated at $805,000. It is estimated that the town would need to obtain an estimated $624,835 in bonded funding or other funding to complete this project, with acceptance of the CDS funding of $2,415,000.”

A special town meeting related to this project is tentatively scheduled for mid-March. There will be additional time for public comment and hearings before then.

“The public works garage facility is in significant disrepair,” Reddersen said. It is not currently insurable.

Also at that December meeting, the board accepted a bid for the storm damaged shore repairs project.

Whitcomb Landscaping was the low bidder at $463,050.

FEMA funding is available in the amount of $263,481.18. It requires 10% matching town funds, making it likely that the town will need to fund an additional $197,000 to complete this work. A special town meeting related to this project will likely be in mid-March.


WASTEWATER PLANT ON SCHEDULE

At that same meeting in late December, board members learned that the town’s wastewater plant will have substantial completion in April 2026 and is on schedule. It’s also slightly below budget with very few change orders.

“I keep in touch with engineers quite regularly,” Interim Director Aaron Zurek said, and they predict no change orders in the next four months.

”It’s so tiny of a spot and it’s been so hard to get some things done, but we’ve managed to do it quite well,” Zurek said.

The new plant is more complex with more machinery and pumps. The pumps won’t foul and will last longer, he explained. There’s more machinery, but a better product in the end. However, rates will likely raise because of the electricity consumption of the new equipment.

There hasn’t been a rate increase since last year, which was a 1.5% increase. A 15% increase might be likely, he said.

“Electricity costs keep going up and up and up. You know, we run big pumps and we’re seeing it,” Zurek said.

He said that they’ve gone down from six to five staff members. He doesn’t want to be district manager any longer, but would like to continue in his old position. They hope to hire a new district manager. With six full-time people, they can get back on track, he said.


HARBOR COMMITTEE AND ZOOM USAGE

Select board member Natasha Johnson. File photo.

Dan Norwood, the harbor committee’s select board liaison, asked to discuss Zoom meeting usage by the committee.

Many committees use Zoom, Reddersen said, but it’s been up to each committee.

“It does provide a record of events,” she said.

Norwood said that he’d heard that many members of many committees like to use Zoom especially in the winter time if committee members chose.

Johnson said it’s imperative for the community to be able to Zoom committees, which helps increase transparency, participation, and disseminates information.

“I think it’s a great tool to be able to provide that for our community,” she said.

They agreed that it would be good to have a policy around the use of Zoom and town staff would draft one.

Harbor committee Chair Nicholas Madeira said, speaking for himself and not for the harbor committee, he was not a fan of Zoom and said that the Bangor City Council has had problems with its Zoom meetings. He said that members of the public seldom come to the meetings currently.

“I don’t see it as necessary. I see it causing more problems than helping. Distractions, again, I just, I am not a big supporter of the Zoom,” he said. “I don’t see a lot of people tuning into the Southwest Harbor Harbor Committee Zoom meeting. Personally, I’m not a fan.”

One member doesn’t like to drive in the dark, another goes away in winter, he said. The night before the select board’s meeting, the harbor committee didn’t have a quorum, he said.

“It’s just another headache. It’s something else we have to monitor, have to control,” he said.

Harbor committee member Anne Napier said she’d been asking for a Zoom for several years.

“Last night was a perfect example where we had two people with flu, one with a broken wrist, and me who did not feel safe coming out in the dark on the ice and snow. I speak strongly in support of having Zoom at our meetings. I think it’s a useful tool. There are many people on the committee who are willing to participate if they can do it from a distance,” Napier said, “because they’re invested in the committee and they would participate wherever they are if they had that option.”


CODE OF CONDUCT

At the January 6 meeting, the board members performed the annual review of its current Code of Conduct Policy to see if it needed to be changed.

Chair Noah Burby read the code in its entirety. Members spoke to potential comma usage changes as well as the phrasing of “personal benefit” rather than “personal interest” in relation to conflict of interest.


POLICE CHIEF UPDATE

Also at the December meeting, Chief John Hall provided an update of the overtime budget for the department as the department is fully staffed.

The primary driver of overtime budget has been the 24-hour-shifts, Hall said. It’s also the town’s primary retention driver.

“That was the reason the officers came here, for that type of a shift,” Hall said.

The marathon and other public events also make fall the heavy overtime season for the police department.

“Knowing that the overtime budget is very high and that we are kind of over, it has forced us to look at some opportunities in the coming future as a way to reduce the overall overtime budget,” Chief Hall told the select board.

They’ve saved 48 hours in overtime in the two weeks prior to the December meeting by shifting an officer to another shift rather than using vacation time.

“We’re paying regularly people overtime as part of their regular shift because they work more than 40 hours a week,” Vice Chair Chapin McFarland said.

It’s not working overtime if it’s just their regular shift, McFarland reasoned.


OTHER BUSINESS

Bub’s Burritos LLC’s liquor license was renewed at an earlier meeting in December.

Also at that meeting, Jarrod Kushla, the town’s new code enforcement officer was appointed as the town’s E911 addressing officer, health officer and has already started.

“Welcome back,” Chapin McFarland said to Kushla, who had previously been harbormaster in the town.

“Thank you, appreciate that. It’s good to be back,” Kushla said.

“The town’s sustainability committee has identified a firm, Stanley Electric, who will provide a no-cost energy walk-through and lighting efficiency assessment for the town office building, as well as Pemetic Elementary School,” Reddersen explained in her manager’s memo. “This is designed to potentially save money on energy by identifying cost-effective lighting upgrades. There is no obligation to utilize this firm for the purchase and/or installation of potential items identified by the review, but will provide additional information related to budget, potential rebates, and energy efficiency.”

The sustainability committee’s David Kruger said they were asking for an electricity and lighting audit rather than a full-fledged energy audit. The hope, he said, is to find ways for the town to reduce its energy consumption and thus reduce the cost.

“The best way to start is with lighting and electricity because usually the payback periods are so short and there’s so much low-hanging fruit,” Kruger said.

Stanley Electric is offering the audit for free. The town is under no obligations to accept any recommendations, but the state has good rebates that help with making technology innovations more affordable, Kruger said.

The board approved the request.

The board also accepted a Maine SHIP grant of $100,000 and authorized matching funds of 50%, which had been approved by voters in May 2025 at the town meeting.

“It’s a major upgrade for the harbor,” Harbormaster Rob Leavitt said.

The board also approved the purchase of a front-end loader during its last meeting of 2025.

The low bidder was Chadwick-Baross, Inc. for $143,165.42, including a trade-in of the existing loader at $40,000.

There were safety concerns with the town’s existing front-end loader, Reddersen said.

“It’s a ten-year old machine and we’ve had a lot of maintenance issues,” Road Forman Scott Alley said. “It’s a tippy machine.”


LINKS TO LEARN MORE

https://swhdistrict.org

Volunteers Needed for the Following Positions:
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Water & Sewer District Board of Trustees – 3-year term
Board of Appeals – 3-year term
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Anyone interested in filling these positions is encouraged to attend upcoming meetings & complete a volunteer application.


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