Lincoln Town Council probes FY26 revenue assumptions, focuses on gambling receipts and state aid

Lincoln Town Council spent much of its meeting reviewing projected municipal revenues for fiscal 2026, focusing on gambling receipts, several lines of state aid and a $500,000 transfer recorded to Fund 50.

Why it matters: the council said portions of Lincoln’s operating and capital plans depend on gaming-related receipts and several state reimbursements. Council members pressed staff to explain the governor’s FY2025 assumptions, asked for line‑by‑line documentation, and discussed routing gaming receipts into the town’s Fund 50 (the capital/earmarked fund) to avoid treating potentially volatile gaming proceeds as general operating revenue.

The council opened the revenue review by noting the packet pulled together state estimates (motor‑vehicle phase‑out, personal property/tangible reimbursements, library aid, airport impact aid, hotel and meals taxes) and local receipts posted through Dec. 31. Members highlighted three recurring questions: (1) which receipts are already posted versus projected; (2) whether internet/iGaming and sports betting revenues are being treated like table‑game/table‑lottery commissions; and (3) whether any gambling proceeds should be routed to Fund 50 rather than into the general fund.

Gaming and Fund 50. Council members discussed several casino and wagering lines that appear in the packet. The governor’s budget and the town packet list separate estimates for video lottery/table‑game commissions, sports betting and internet (iGaming) receipts; the packet included the town’s current conservative budgeting assumptions (internet gambling shown at $100,000 in the governor’s materials, sports betting at $200,000). Several council members said the town has seen higher-than-budgeted receipts in prior years and that online gambling growth could shift revenue between categories. One council member asked staff to ask the state how internet wagering receipts are being allocated and whether they can be included in the town’s Fund 50 contributions instead of general revenue. The council did not adopt an ordinance; members asked staff to return with an analysis and, if needed, a proposed ordinance or resolution to change the treatment of gambling receipts.

State aid lines and one‑time corrections. The packet traces multiple state aid programs and specific corrections: the motor‑vehicle phase‑out reimbursement was described as unchanged and effectively embedded in town budgets; a correction described in the packet showed a personal‑property (tangible) reimbursement adjustment of about $247,512 from the state; airport impact aid remains the statutory minimum for smaller airports ($25,000 listed for Lincoln in the packet); and library aid calculations were discussed (the FY2025 packet notes distribution is at 24.2% of the statutory formula rather than 25%). Council members asked staff to request the state’s underlying calculations for library aid and other line items so the council can understand drivers and eligibility rules.

Local receipts and bookkeeping items. The council flagged a $500,000 transfer shown in the packet as a general‑fund transfer into Fund 50 and asked the town administrator and finance director to confirm whether that entry was appropriate in the expense lines. Members also reviewed local receipts posted through 12/31 (interest on investments, licenses, building permits, recording fees, municipal court receipts) and identified several categories where posted receipts already exceed the conservative amounts used in the packet; the finance director was asked to provide supporting spreadsheets showing actual receipts through year‑to‑date posting and to explain any classification differences between “other,” “miscellaneous” and restricted/insurance receipts cited in the packet.

Requests and next steps. Council members asked staff to provide: (1) detailed back‑up spreadsheets that show the state calculations used to produce line items in the packet; (2) a breakdown of which gambling receipts (table games, video lottery, sports betting, internet/iGaming) flow into Fund 50 today and how the state and host‑community distribution rules apply; (3) documentation of the $500,000 transfer into Fund 50 and any suggested corrections; and (4) clarifications on which state aid lines (library, motor‑vehicle phase‑out, tangible/personal‑property reimbursement, airport impact aid, hotel/meals taxes) are one‑time adjustments vs. recurring. Staff said they would return with requested spreadsheets and calculations.

Meeting workflow. The council also set tentative dates and format preferences for upcoming budget nights: members asked the town administrator to schedule two or three nights where department heads would meet with the council so questions can be asked in real time. The council emphasized it wants the finance director to attend those sessions.

Votes at a glance - Motion to accept minutes of Feb. 18: motion made by Dave; seconded by Bruce; voice vote recorded as “Aye” with no opposed responses noted — accepted. - Motion to accept minutes of Feb. 20: motion made by Dave; seconded by Bruce; voice vote recorded as “Aye” with no opposed responses noted — accepted. - Motion to adjourn: motion made by Bruce; seconded by Aiden; voice vote recorded as “Aye” with no opposed responses noted — meeting adjourned.

Taper: Council members said they will revisit the packet after staff provides the requested spreadsheets and a short memo that lays out options for treating gambling receipts and for any bookkeeping corrections staff recommends.