The Lincoln City Council unanimously approved the mayor’s biennial budget on Monday, laced with several spending increases and a bump of $32 million in the city’s general fund over the next two years.
The first year of the budget (2024-25) will see the biggest increase of $21 million in general funds, with a smaller $11 million increase for the second year (2025-26).
A rise in funding for StarTran bussing services and city employee salaries accounted for a bulk of spending increases. With $8.7 million allocated for city employee salaries and benefits, including $3.5 million for firefighter raises (8% in the first year and 6% in the second year). Nearly $50 million will be allocated for streets in the first year, an increase of $3 million. Due to reduced state funding, the loss of a University of Nebraska-Lincoln route, and increased fuel costs, StarTran received a funding increase of $2.1 million.
The source of funds will be provided primarily by property and sales tax revenue, with an estimated $1.3 million annually from casino revenue and other taxes. The city’s property tax did not grow past the current 29.533 cents per $100 of valuation, but property taxes revenue may increase in the future if property values rise.
Distinct from main budget proposal, the council also approved an additional $3 million in municipal bonds over two years for sidewalk repairs.
A total of $215 million will be dedicated to further a second water source project for the city, with $105 million of that total coming from federal American Rescue Plan Act funds.
The council also shifted $625,000 from general fund reserves for additional police and firefighter training, a heat pump incentive program, a community forestry plan, and a tree inventory update. Lincoln Parks & Recreation will also utilize $50,000 from their capital improvement program to improve city ballfields.
The city’s total budget over the next two-years is over $700 million, with the tax-funded portion at $282.4 million for 2024-25 and $293.2 million for 2025-26.
