Council adopts $164M biennial budget and $36M in capital projects; general fund shows multi‑year structural gap

The City Council on Tuesday adopted the biennial budget and capital improvement plan for fiscal years 2025–26 and 2026–27, a financial plan staff described as transparent about an emerging multi‑year structural gap in the general fund.

Finance staff member Nita Racker presented the document and told the council the combined budget across all funds for the two‑year cycle is roughly $164 million, with about $36 million budgeted for capital projects over the same period. Racker said the general fund faces a $6.9 million deficit that includes one‑time capital projects and transfers and a roughly $3.6 million structural operating deficit.

City Manager Sean (staff) and Racker outlined several steps the administration will use to manage the gap: pause or time certain recruitments (hold non‑critical position hires later in the fiscal year), reassess the capital projects list to prioritize and defer lower‑priority projects, pursue administrative efficiencies and technology investments, and continue discussions with Placer County about property‑tax allocation to correct perceived under‑allocation to the city.

Racker noted some enterprise funds (water, wastewater, solid waste, airport) are performing adequately and are positioned to support infrastructure investments; the city also plans to place $4 million into a pension trust to help manage long‑term retirement liabilities. Staff projected modest near‑term budget deltas — roughly $240,000 in fiscal year 2025–26 and about $100,000 in fiscal year 2026–27 — but said those figures assume no additional revenue changes and that the council will receive updates when material changes occur.

Members of the public asked questions about ADA and curb ramps, ongoing maintenance costs for parks and timing of transportation projects in west Lincoln; staff responded that ADA transition‑plan work is budgeted in the current biennium, park maintenance will be covered through the citywide parks maintenance CFD and a major Joiner Parkway/12 Bridges corridor project remains a high priority.

The council approved the biennial budget on a roll‑call vote with Council Member Rady, Council Member Pearl, Mayor Pro Tem Brown, Council Member Eklund and Mayor Andreatta recorded as voting yes.

Why it matters: The biennial budget frames the city’s spending and capital investments for the next two years and identifies a structural funding gap that staff and council will address through a combination of revenue negotiations, hiring pauses, prioritizing capital projects and operational efficiencies.

What’s next: Staff will provide regular financial updates and quarterly budget reports; council and staff will discuss policy options, county property‑tax allocation issues and fee studies that could alter the fiscal outlook.