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City councils

Lincoln City Closes $12 Million Budget Gap Without Increasing Property Tax Rate

Strategic Insights

— 2 min read

The city of Lincoln has issued a proposal to close a significant budget gap of $12 million through a combination of cuts and revenue enhancements, without raising the property tax rate. The budget gap is largely due to the economic impact of the COVID-19 pandemic on city revenues, including a decline in projected sales tax receipts. Mayor Leirion Gaylor Baird's proposed budget for the 2020-2021 fiscal year includes reductions in department budgets, capital improvement projects, and cost-of-living adjustments, as well as increases in non-tax revenues.

Key Takeaways:

  • The city of Lincoln proposes to close a $12 million budget gap for the 2020-2021 fiscal year without increasing the property tax rate.
  • The budget gap is largely due to the impact of the COVID-19 pandemic on city revenues, including a decline in projected sales tax receipts.
  • The proposed budget includes reductions in department budgets by nearly $8 million, including $2.5 million in interest earnings taken from individual departments.
  • The budget also includes a reduction in capital improvement projects by $878,000 and a proposal to freeze cost-of-living adjustments (COLA) wages, saving $670,000.
  • Non-tax revenues are expected to increase by about $2.3 million, including increases in Parks and Recreation fees and a new franchise agreement with Black Hills Energy.
  • The proposed budget includes key investments in public safety, health, and quality of life, including the implementation of body-worn cameras in LPD and funding for Read Aloud Lincoln and three new neighborhood parks.
  • The city's property tax levy will remain at 31.980 cents per $100 of assessed valuation, with a total tax-funded budget decreasing from $214.0 million in the current fiscal year to $210.4 million in 2020-2021.
  • The budget also includes funding for water and wastewater improvements, broadband conduit, and several other infrastructure projects.

Statistics:

  • The proposed budget includes a total of $210.4 million in tax-funded expenditures for the 2020-2021 fiscal year.
  • The budget proposes to reduce department budgets by nearly $8 million and capital improvement projects by $878,000.
  • Non-tax revenues are expected to increase by about $2.3 million, including $1.25 million from a new franchise agreement with Black Hills Energy.
  • The city's property tax rate will remain at 31.980 cents per $100 of assessed valuation.
  • The city's total tax-funded budget will decrease by $3.6 million from the current fiscal year.

Sources:

  • City of Lincoln, Mayor's Proposed Budget for 2020-2021 (June 14, 2020)
  • HT Media Ltd., "Lincoln City Closes $12 Million Budget Gap Without Increasing Property Tax Rate" (June 14, 2020)

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