South Lebanon holds public hearing on fiscal 2026 tax budget; council adopts interim tax budget resolution

The South Lebanon City Council opened a public hearing July 1 on the city's fiscal year 2026 tax budget and later adopted an emergency resolution authorizing the director of finance to submit the interim tax budget to the Warren County auditor.

Finance staff explained that municipalities must pass an annual tax budget by July 15 and submit it to the county auditor for certification. The city's current property tax rate is 1.3 mills, producing about $287,000 for the general fund; the primary revenue source is a 1% municipal income tax estimated at about $2,675,000 for 2026, a conservative projection staff described as roughly a 4% increase over 2024 collections.

The tax budget summary presented to council estimates $9,800,000 in total revenue for 2026, operating expenses near $10,700,000 and a projected year-end fund balance of about $15,100,000. Staff said the tax budget uses the 2025 budget as a baseline and excludes one-time grants not expected in 2026.

Council later voted to adopt emergency resolution 2025-26 (interim tax budget submission) by title only following a motion by Council member Lisa Feder, seconded by Council member Mary Anne Harrison; council members Allen, Feder, Harrison and Spicer voted "yay." The resolution authorizes the director of finance to submit the interim tax budget to the county auditor.

Ending: Finance staff circulated a '26 operating and capital budget calendar and said administrative review and committee meetings are planned through October–December as staff prepare the final 2026 budget for council approval.