Budget board holds FY 2026 public hearing, reclassifies grants and approves several line‑item changes

The Lincoln Budget Board held a public hearing April 3 on the town administrator’s recommended FY 2026 budget and approved several line‑item changes, including moving a $7,500 contract out of the grants line into personnel, creating a $10,000 senior‑center meals line, and removing a $500,000 placeholder transfer from the FY 2026 revenue/expense worksheet.

The hearing reviewed the complete recommended budget, which the board read aloud during the meeting as the municipal and education sections were presented. The administrator’s recommended combined municipal and school budget total shown at the hearing was $106,315,340 (the board read the line‑item totals aloud during the session). The board heard staff responses to questions about fund balances, grant classifications and capital projects before taking votes on specific adjustments.

Board action and why it matters

- Reclassifying Community Care Alliance: The board voted to remove a $7,500 line listed under grants and contributions and then voted to create a new personnel/contract line in Human Resources for Community Care Alliance at $7,500. Minutes record a motion by “Bob,” seconded by “Bruce,” to zero the grant line, and a subsequent motion to create the contract line; both motions were approved by voice vote. The board clarified during discussion that Community Care Alliance provides employee counseling and post‑incident counseling services and should be recorded as an operational contract rather than a grant.

- Senior‑center meals: The board voted to move an existing $10,000 “Aging Well” item from the grants page into the senior center operating lines as a new line titled “Meals.” Members said the money is used to subsidize congregate meals and should be treated as an operating expense for the senior center rather than a grant. The motion carried by voice vote.

- Placeholder transfer removed: The board voted to remove a $500,000 placeholder transfer that had appeared on the draft FY ’26 worksheet. Members described that line as a leftover placeholder rather than a planned appropriation; a motion to remove the amount passed by voice vote.

Other budget items discussed (no formal votes recorded)

- Town Hall HVAC/OER grant: Staff presented a possible Office of Energy Resources (OER) grant to replace inefficient window units at Town Hall. Attendees were told the project would require an ANGI audit and that the project estimate the board received ranged up to roughly $261,000 in total project cost, with the town’s share (including in‑kind project management time) estimated at about $136,000. Board members asked that the scope and match be clarified before committing local funds; staff said the actual scope and system (mini‑splits versus rooftop units) would be determined as part of the grant design. The board was informed that ARCA funds previously identified for the match cannot be commingled with this OER grant.

- Front Street corridor and capital grouping: Members heard an update that Front Street design work is underway and that state paving plans may be coordinated to include curb‑to‑curb paving if possible. The board reviewed a staff proposal to group capital requests into themed buckets (fields/courts, flood mitigation, library/human services, public safety/public works, school buildings/facilities, digital learning, and town hall) to simplify the number of individual resolutions to be presented at financial town meeting.

- Revolving fund and school capital: Board members debated the town’s practice of transferring money to a school revolving fund to support projects that will be reimbursed later. Some members voiced concern about repeatedly infusing limited town capital into the revolving fund year after year and asked staff to justify which school projects should be funded from the revolving fund versus traditional capital resolutions. Staff explained the revolving‑fund approach is used so the district can show the ability to pay up front and then receive state reimbursement during the project lifecycle.

Process and next steps

The administrator asked agencies seeking town contributions to submit letters or emails by the board’s next meeting (the administrator indicated a hard deadline of the board’s Tuesday meeting); staff said agencies that do not provide documentation by that meeting may not be funded. The board asked the finance staff to provide updated assessed values and updated tax‑rate support sheets (staff noted assessed values are not final until certification in June). The board also asked for a clearer breakout of consumable versus capital components in the school curriculum request before deciding whether to include curriculum items as capital.

Votes at a glance

- Motion: Remove Community Care Alliance $7,500 from grants and contributions. Moved by Bob; seconded by Bruce. Outcome: approved by voice vote (no roll‑call recorded). Note: members discussed reclassifying the item as an HR contract.

- Motion: Create personnel/contract line for Community Care Alliance, $7,500 (Human Resources). Moved by Bob; seconded by Dave. Outcome: approved by voice vote (no roll‑call recorded).

- Motion: Move Aging Well $10,000 to a new Senior Center “Meals” line (Human Services). Moved by board member; seconded. Outcome: approved by voice vote (no roll‑call recorded).

- Motion: Remove $500,000 placeholder transfer to other funds from FY 2026. Moved by Bob; seconded by Aiden. Outcome: approved by voice vote (no roll‑call recorded).

What the board asked staff to provide

Board members requested: (1) copies of contracts and documentation for organizations listed in the grants and contributions page, (2) the consumables versus capital breakout for the school curriculum request, (3) fund balance and debt service figures used for the budget book, and (4) updated assessed values and the tax‑rate support sheet prior to financial town meeting.

The board continued the broader capital and school‑revolving‑fund discussion with no additional formal actions. The board scheduled follow‑up at its next meetings and directed staff to circulate updated documents and any outstanding agency letters ahead of the April financial town meeting.