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Council approves biennium budget amendments; public raises questions about reserve use and overtime
Summary
Council adopted Resolution 2025-025 to approve mid‑biennium budget adjustments. Public commenters asked for clarity about the general fund reserve decline and overtime spending; staff said some drawdowns reflect one‑time capital projects and a prior $3 million Section 115 trust transfer.
The City of Lincoln council unanimously adopted Resolution 2025-025, approving mid‑biennium adjustments to the city’s budget for the 2023–25 period and administrative changes requested by finance staff.
Nita (finance) described the amendments as routine mid‑cycle adjustments and said the city remains conservative in budgeting. The staff report and presentation outlined a series of transfers, a requested new position and various capital and one‑time expenditures. Nita told the council this is the last midyear update before the new biennium budget for July 1, 2025–June 30, 2027.
Public commenters pressed staff and council for more detail on the general fund reserve and overtime. Stella (public commenter) noted figures in the materials showing an available cash reserve she read as “20‑something million” and a projection by June 30, 2025 of “17‑something million,” asking whether the city was drawing on reserves and how quickly that could deplete cash balances. Nita and other staff said some draws reflected council‑authorized one‑time capital projects and that the city maintains multiple liquidity practices (including an informal six‑month cash buffer tied to county payment schedules). Staff also said the council earlier directed a $3 million contribution to a Section 115 trust for future labor liabilities; that transfer appears in fund accounting and reduced the general fund balance but is held in a separate account.
Council discussion acknowledged long‑term fiscal concerns. One council member summarized: the city is not currently in immediate crisis but will need revenue or expenditure changes in coming years to maintain long‑term balance. The council voted by roll call: Council member Pearl—yes; Council member Reedy—yes; Mayor Pro Tem Brown—yes; Council member Eklund—yes; Mayor Andreatta—yes.
The adopted amendments reflect adjustments described in the staff packet, including a requested position and other technical transfers. Staff said finance will continue monitoring overtime, which is concentrated in police and fire, and will report results in future updates.
