Lebanon council previews $134M budget, highlights $11.1M for roads and no new debt

Lebanon City Council on Nov. 12 received the first reading of the city’s 2026 operating budget, which staff said includes roughly $134 million in total revenues and about $137 million in total expenditures and does not issue any new debt.

City Manager (unnamed) presented slides and line-item highlights, saying, “This budget does not issue any new debt for the city,” and noting a proposed $11,100,000 investment in roadway improvements next year. The work program named Meadow Lane and Suncrest for reconstruction, Carson Drive as a primary paving location, and additional improvements on Mason and Millbrook roads. Staff said the $11.1 million figure represents pavement and related roadway costs and excludes separate utility-replacement expenses.

The presentation also identified priorities that include beginning engineering for a new police station, funding for a splash park (placeholder identified in the capital plan), and funding associated with the potential repurchase of the Fairgrounds property: $250,000 for electric system upgrades and $375,000 for miscellaneous property improvements tied to a master-planning process. Staff reported a continued emphasis on maintaining cash reserves and noted that some capital projects will be supported by grant funding.

On utilities, staff proposed a 2% water rate increase and a 2% sanitary-sewer rate increase as part of ensuring sustainability of the distribution and collection systems and to comply with enterprise bond covenants. The presentation said the city has been investing about $1 million a year in water-main replacement for more than a decade and is planning further utility replacement work tied to several road reconstruction projects.

Councilmembers asked for clarification about the scope and duration of the road program and were told the five-year capital improvement plan projects road investment in the $9–11 million range annually, with some of the work supported by grants (staff cited about a $5.7 million grant applied for to support the SR-63 widening). Councilmembers praised the utility and public-works departments and raised questions about public impacts and long-term trends.

Council moved the budget ordinance through first reading and scheduled a final vote for the Nov. 25 meeting.

Next steps: city council will take the second reading and a formal vote on the 2026 operating budget at its Nov. 25 meeting.