Town administrator presents recommended FY2026 budget; ARPA funds, school ask and capital needs highlighted

Town Administrator presented the town nd school recommended budgets and a municipal capital plan during the February meeting of the Lincoln Budget Board, and outlined how prior federal ARPA funds and new grants are being used as the town prepares FY2026 spending plans.

The administrator said the town took a conservative approach to $6.5 million in American Rescue Plan Act (ARPA) funds and committed nearly all of it to infrastructure, equipment and building projects. "Our goal was not to give back a penny or a dime to the federal government on those funds, and we did get it all committed," the Town Administrator said. The administrator added the last remaining $350,000 of ARPA will be used for a centralized rescue building under construction next door.

The presentation laid out a municipal recommended operating budget of $20,441,553 for FY2026 and a municipal capital request that the administrator described as roughly $1,500,000 in local capital ask this year (with larger program-level figures shown elsewhere in the budget document). Of the $1.5 million local capital ask, the administrator said about $700,000 is associated with a National Resource Conservation Service (NRCS) grant to buy out four homes on Blue Avenue in a floodplain and convert that area to a holding/detention area to reduce repeated flooding.

Why it matters: the town no longer has the ARPA funding cushion it used for recent projects, and the budget discussion focused on whether to replace vehicles and equipment now or delay purchases and risk higher future costs. The administrator warned that postponing capital purchases could increase long-term cost and create a backlog of replacements.

Discussion highlights and context

- Schools and state aid: The administrator said the governor—s budget provides roughly $2.4 million additional state aid to the school department, which the school said allowed it to request no increase in operational funding for FY2026. The school department did present separate capital requests (the administrator referenced a capital ask around $1.9 million) and noted it already has existing bonding and revolving-fund plans for larger projects.

- Centralized rescue building and Lincoln Learning Center: The administrator outlined a centralized rescue building project with a planned March 7 groundbreaking and projected occupancy in summer 2026; the project includes a 2,424-square-foot Lincoln Learning Center classroom space funded at $2,000,000 to provide workforce and health screening programs adjacent to the rescue facility.

- Capital tradeoffs: The administrator highlighted two large municipal capital needs: stormwater/flood mitigation (including the Blue Avenue buyout tied to an NRCS grant) and replacement of heavy equipment (for example, a new garbage truck the administrator estimated at about $300,000). The presentation urged the board to prioritize a multi-year replacement plan so one-year postponements do not lead to greater future expense.

- Casino and gaming revenues: The administrator reviewed recent gaming revenue trends: table games and VLTs (video lottery terminals) have softened, while iGaming has partially offset declines. He said one quarter of VLT revenue was down about $200,000 year-over-year; overall gaming revenues remain a material but uncertain revenue source, and the town has previously capped conservatively its budgeted casino revenue at $5.2 million.

- Tax collections and collections strategy: The town reported about a 97.5% current tax-collection rate and said it will resume more aggressive collections practices, including pretax‑sale letters and turning uncollectible motor-vehicle and tangible accounts over to Rossi Law Office for collection. The administrator said the town has not held a tax sale since 2019 and plans to begin that process after the annual town meeting; the board discussed sending pre‑tax‑sale notices as soon as possible to allow payment plans.

- Staffing and operations: The administrator said several town departments have requested additional personnel (police, DPW, HR administrative assistance and an IT assistant). He said department heads will be invited to budget board sessions to explain personnel requests and operational impacts.

- Audit and financial controls: The town has engaged CliftonLarsonAllen as its new audit firm; the administrator said the 2023 audit was completed in October and that 2024 work is expected to be finalized in the first quarter of the year. He said the new auditor will provide management-letter recommendations and support improved internal controls and reconciliations.

Formal actions and votes at the meeting

- The board approved the minutes of the Jan. 30 meeting (motion by Bruce; second by Jen). The approval was recorded by voice vote; no roll-call tally was recorded in the minutes.

- The board approved a motion to adjourn moved by Dave and seconded by Jennifer; the motion passed by voice vote.

What happens next

The budget board scheduled a follow-up meeting to review the school business administrator—s presentation (the school business administrator is expected to appear Thursday) and agreed to invite department heads to present personnel and capital requests in detail. The administrator said an electronic version of the budget will be distributed with embedded notes and assumptions for reviewers to examine ahead of follow-up meetings.

Quotes

"That money is now gone," the Town Administrator said of ARPA funds, noting the town will rely on grants and careful capital planning going forward.

"We're putting [the last $350,000] towards the centralized rescue building," the Town Administrator said, describing the final ARPA allocation.

Ending

Board members asked for detailed backup in advance of the next meeting, including copies of contracts or collective-bargaining details affecting the FY2026 budget, and requested printed and electronic budget files with explanatory notes. The administrator said he would provide the electronic workbook and bring department heads to the next round of review sessions.