Lebanon budget committee approves FY 2025–26 spending plan, advances urban renewal payments

The Lebanon Budget Committee on May 6 approved the city's proposed fiscal year 2025'26 budget and recommended one-year urban renewal tax levies, voting to forward the measures to the City Council for adoption.

The approved measure as read at the meeting set the proposed budget at $95,677,938 and included a property tax levy described in the motion as $5.01364 per $1,000 of assessed value and a $2,000,000 general obligation levy; the committee also voted to adopt the agency budgets and tax divisions for four urban renewal districts.

Committee chair and Finance Director Brandon presented the budget and described key choices that shaped the package, including using a recently enacted $18 monthly city services fee on residential doors and apartment units to shore up the general fund. City Manager Ron Whitelatch and department directors summarized their department-level changes in a series of presentations that preceded the approval vote.

Committee members spent significant time on remaining fiscal risks: long-term pension (PERS) liabilities, projected declines in some state-shared taxes, and major future capital needs in the city's utilities. Committee discussion produced no change to the fee this year; the budget keeps the $18 monthly charge in place but does not raise it for FY 2025'26.

The committee also moved separate approvals to authorize tax increment collections and budgets for the Northwest, North Gateway, Downtown and Millrace urban renewal districts. The Northwest URD will receive accelerated debt-service payments under the adopted plan to enable earlier dissolution of that district in 2027 rather than at its previously scheduled date, a change intended to return property tax revenue to other taxing jurisdictions sooner.

The committee approved the city and urban renewal budgets by voice vote and forwarded them to the City Council. The meeting record shows the committee's votes as voice votes; individual roll-call tallies were not recorded in the public hearing minutes.

Looking ahead, staff flagged several follow-ups for the council and community: continuing state advocacy on pension funding and infrastructure grants, planned capital projects for water and wastewater systems, and ongoing fiscal monitoring of state shared revenues.

The budget committee's approval begins the final steps toward formal council adoption; the forwarded package will appear on the City Council agenda for final action.