Lancaster County Council adopts FY2026 budget, designates tourism recipients for 30% accommodations tax

Lancaster County Council voted to adopt the county's fiscal year 2026 budget on third reading and separately designated how the county's 30% share of the state accommodations tax will be distributed.

Councilmember McGriff moved adoption of the budget ordinance on third reading and the motion passed unanimously. The ordinance as presented includes a 5% across‑the‑board salary increase for full‑ and part‑time employees, 42 new positions, funding for additional salary adjustments and employer health‑insurance contributions, and several fund‑balance appropriations. The countywide budget total presented in the meeting materials was $160,194,556.

The budget matter drew a public comment from Steve Willis, a lifelong Lancaster resident, who praised the proposed compensation increases and urged council to consider a modest millage increase in future years to address unmet needs.

Why this matters: The budget sets personnel levels, pay policy and capital/fund balance allocations that affect county services, facilities and operations. Council discussion touched on technology and facility priorities and on ensuring the implementation of a large enterprise resource planning contract without disrupting services.

Key items in the budget presentation: county administrator Ms. Harris reviewed the package and told council staff proposed $8,000,000 in new revenue for the coming year. Ms. Harris said the presentation includes 42 new positions, with the total first‑year cost for those positions at “just over $3.5 million.” External agencies requested just over $2.5 million in total. The administrator also reported fund‑balance appropriations of “just over $5,000,000” and a millage rollback calculation tied to reassessment; the certified valuation figure cited in the presentation was 599,976. The administrator said the county is negotiating the contract for a new ERP system and staff may recommend extending the contract term from two to three years to support implementation; any contract amount adjustments would return to council.

Separate vote on tourism designation: Council later took a separate motion to designate the county tourism agency that will receive the 30% portion of the state accommodations tax. Councilmember McGriff moved that the 30% designated tourism monies be split between the Old English District consortium and the county's 250th‑anniversary committee; the motion was seconded by Councilmember Luis and the motion passed, with the recorded result in the meeting minutes described as “the motion passes 6 with 1, with 1 recusal.” Prior to that vote Councilmember Ram had been asked to recuse himself from the accommodations‑tax discussion and briefly left the meeting room.

Other budget items flagged for future council action: Ms. Harris advised council that the county will return with budget requests related to the Burns Building, including an estimated $1,300,000 need for coroner's office expansion and EMS station build‑outs, and with proposed changes to the county's personnel policy on travel and travel reimbursement.

Votes at a glance: Adopt FY2026 budget (third reading) — motion to adopt: not specified; outcome: approved (unanimous). Designate tourism agency for 30% accommodations tax — motion by Councilmember McGriff; second by Councilmember Luis; outcome: approved (recorded as “passes 6 with 1, with 1 recusal”).

What council said: County administrator Ms. Harris presented budget details and answered council questions about positions, fund balance appropriations and the ERP contract. In public comment, Steve Willis urged council to fund staff adequately and considered a future modest millage increase.

What happens next: With third reading passed, the fiscal year 2026 budget will take effect as adopted. Council will receive follow‑up information as staff finalizes contract terms for the ERP procurement and as staff returns with specific requests for Burns Building work and personnel‑policy changes.