Lincoln holds public hearing on mid‑biennium 2024–26 budget adjustments; residents urge more transit funding

The Lincoln City Council held a public hearing Aug. 18 on proposed mid‑biennium adjustments to the city’s 2024–26 operating budget and capital improvement program, hearing a staff presentation on revenue trends and proposed spending changes and receiving more than a dozen public comments focused largely on StarTran transit funding, pool repairs and broader affordability concerns.

City budget presenter John Carlson, speaking with members of the city’s finance and budget team, outlined five primary adjustments under consideration: an additional $936,000 for the police and fire pension; roughly $150,000 to fund pay incentives for 911 emergency dispatchers; one‑time funds to close an operating gap at StarTran; a proposed $1.5 million pool maintenance and repair fund; and incorporating debt service for the voter‑approved stormwater bond into the biennial budget. Carlson said the council would hold the formal vote on the ordinance and related resolutions on Aug. 25, after the public hearing record is closed.

Why it matters: the mid‑biennium adjustments would allocate a mix of ongoing and one‑time dollars toward pensions, public safety staffing, transit operations and aging neighborhood pools. City staff said some proposed funding would come from expected valuation increases and one‑time sales tax receipts; the council will decide whether to adopt those changes at a later meeting.

Staff presentation and proposed adjustments

John Carlson and the budget team described the city’s revenue picture and drivers for the requested changes. Carlson said sales tax remains the city’s single largest revenue source and noted the city saw an unusually large one‑time spike in sales tax receipts earlier in the year tied to federal and market factors. He said the spike could be used to cover one‑time needs but cautioned that recurring obligations should be matched to recurring revenue.

Key figures presented by the budget team included: - Police and fire pension: an additional $936,000 sought after the city’s actuarial settlement for the pension plan. - 911 dispatch pay incentives: roughly $150,000 to retain and hire dispatchers following a period with as many as 16 vacancies earlier this year. - StarTran operating gap: officials described about a $1 million shortfall to close out the current fiscal year, driven by two factors: federally funded transit dollars routed through the state that had been budgeted but were not delivered the last two years, and increased overtime costs. The city proposed using one‑time sales tax receipts to close the current fiscal‑year gap and asked the council to consider longer‑term funding strategies later. - Pool repairs: $1.5 million proposed as a pool maintenance and repair fund to respond to increased repairs at five neighborhood pools (Arnold, Belmont, Ballard, Eden and Irvingdale), some more than 60 years old. - Stormwater bond debt service: the council was advised to program debt service for the stormwater bond voters approved Nov. 5, 2024.

The budget presentation also recapped the capital improvement program (CIP): staff noted roughly $200 million planned for the Water 2 project as a multi‑year investment and multi‑million dollar planned expenditures for water and wastewater infrastructure (staff cited $47 million in year 1 and $45 million in year 2 for water CIP elements presented), along with landfill, solid‑waste and street projects. Carlson reiterated that water and wastewater rate increases (programmed as 5% increases in the CIP) would produce an approximately $1.76 monthly increase for the average water bill in year 2 as presented to the council.

Public comment: dozens urged more transit service and late/Sunday hours

A majority of the public commenters addressed StarTran, Lincoln’s public bus system, and urged increased operating funds to add cross‑town routes, evening service and Sunday service.

Richard Schmeling, president of Citizens for Improved Transit, said, “I am grateful to the mayor for giving StarTran some additional funds, but it isn’t enough. We have a stagnant bus system.” Schmeling told the council an example of a job candidate who lost a $16‑per‑hour second‑shift job because he could not get home on the bus after the shift ended.

Other public commenters echoed that view. Patrick Helwig said the city should “extend service in the evening on all the bus routes” and add cross‑town routes so riders do not have to travel downtown to transfer. Marian Malone and several others said Sunday service and later evening service would expand access to jobs, church and shopping for residents who cannot afford or cannot operate a car.

Marilyn Krueger, a retired Lincoln bus driver and founding member of Citizens for Improved Transit, told the council, “It is well documented that for every dollar invested in public transportation, Lincoln receives $4 in return revenue,” and urged renewed investment to make the system more competitive and accessible.

Other public comments and resident concerns

Speakers also addressed broader affordability and neighborhood services. Gary Nelson said rising property taxes, insurance and service fees were pushing some residents from homeownership into renting. Roy Helm and others supported pension funding and the proposed 911 pay elements, calling those investments essential to public safety staffing and emergency response.

Next steps

City staff told the council the public hearing record will remain open through Aug. 28 for comments related to the 1‑ and 6‑year streets and highways program. The formal vote on the budget amendments and related CIP transfer ordinance was scheduled for the council meeting on Aug. 25. The staff presentation said some of the proposed increases would be matched to projected valuation growth while one‑time sales tax receipts could be used to close the current fiscal‑year StarTran gap.

Speakers (first reference shows role/affiliation as given in the transcript): John Carlson, budget team presenter (city staff); Finance Director Joe (city staff); Sherry Wolf (city staff); Chad Moore (city staff); Claire (budget team member; full name not specified in record); Richard Schmeling, president, Citizens for Improved Transit; Patrick Helwig, resident; Marian Malone, resident; Mark Coleman, president, Lincoln chapter, National Federation of the Blind; Marilyn Krueger, retired city bus driver and founding member, Citizens for Improved Transit; Gary Nelson, resident; Roy Helm, resident.

Ending

Council members heard public testimony and received the staff presentation on Aug. 18. No final action was taken that night; the council reserved action on the proposed adjustments for a vote scheduled Aug. 25. The public hearing record for street and highway comments remains open through Aug. 28, 2025.