City Council Approves Of Mayor’s Plan To Balance Budget

LINCOLN–(KFOR August 27)–The Lincoln City Council Monday evening passed Mayor Leirion Gaylor Baird’s plan to fill the nearly $7- million gap in the two year budget on a 7-0 vote.

Several people testified about the mayor’s proposed budget changes and most of them were concerned about changes to StarTran’s Handi-Van services, which gives rides to people who are handicap, have mental health issues, etc.

Transport Plus had been handling those services the past four years and the budget change eliminated their contract, saving the city $125,000.

Now at the mid-point of the 2018-2020 biennium, the City Finance Department is projecting a $2.66 million shortfall for the current 2018-2019 fiscal year and a $4.13 million shortfall for the 2019-2020 fiscal year due to aggressive sales tax projections and lagging sales tax receipts.

To address the gap in the current fiscal year ending August 31, Mayor Gaylor Baird recommended using cash reserves to make up the difference in projected revenues. The reserves are currently equivalent to 35% of the City’s general fund budget, well above the 20% required by the City’s cash reserve policy.

To address the 2019-2020 shortfall, the mayor recommended making $3 million in cuts and using a portion of a $1.8 million increase in projected property tax revenue due to revaluations and construction growth.