Lincoln County preliminary 2025–26 budget shows tax-request exceedance; commissioners weigh cuts and exceptions

Lincoln County officials spent an extended segment of the Aug. 25 board meeting reviewing the county’s preliminary 2025–26 budget, which the county’s budget preparer said would exceed the state’s new property tax request authority by about $1.79 million.

Susan Meline of McChesney Martin Seitorn, the consultant assisting the county with the budget, told the board the preliminary tax request for the county’s budget year would be about $20,000,001 (presentation figure in packet) and that the new statutory property-tax request authority calculation placed the county roughly $1.8 million over the allowable increase. Meline said the increase reflects several components: a general fund rise largely tied to jail costs, lower prior-year cash reserves and standard growth/inflation calculations required by state forms.

County Treasurer Sherry Newton had previously emailed a breakdown of cash balances and fund allocations; Newton told the board the county’s total cash includes amounts that are already committed to specific funds and cannot be repurposed without consequences. Commissioners noted prior transfers from the county’s inheritance fund to support operations and discussed whether those reserves or investment penalties should factor into the budget strategy.

Meline explained the board’s basic options: (1) trim roughly $1.79 million from proposed spending; (2) take allowable exceptions under the new statute (examples include public-safety exceptions or a bond exception); or (3) issue bonds for capital items and use the approved-bond exception. She warned that exceptions used this year reduce the baseline authority in the calculation for next year and that some exceptions (notably a bond exception or declared-disaster exception) have different effects on subsequent-year computations.

Board members asked for detailed line-item analysis to identify where the apparent 16.7% increase in “property tax request” (relative to last year’s levied amount) originates. Commissioners requested that staff provide a breakdown of the general-fund increases, confirm the treatment of grant-funded items (for example, a large grant proposal budgeted as revenue to offset a $750,000 program cost), and return suggested targets for departmental reductions.

The board set a schedule for next steps: the county’s budget team will send a clearer analysis of the sources of the increase to the commissioners within days; department heads will be asked to review and resubmit trimmed budgets with a target date of Sept. 15; the board indicated it may hold special or extended meetings to complete the process. Officials repeatedly emphasized the need to balance immediate service needs (public safety, road maintenance) with the new statutory limits.

Ending: County staff will provide a line-by-line explanation of the general fund increases and recommended reduction targets before the board’s next scheduled budget meeting; commissioners signaled they will consider a mix of spending reductions, use of inheritance transfers, and targeted exceptions if necessary.