Lancaster City Council advanced the 2026 budget on first reading at its Nov. 25 meeting and took first reading of a millage ordinance while separately approving a pay increase for council members.

Councilor Arroyo reviewed the budget process changes under the new home‑rule charter and said the proposed budget contains no property tax or earned income tax increases. "The proposed budget does not include any proposed property tax increases or earned income tax increase," Arroyo said, noting the council has held two budget hearings and the administration incorporated council feedback.

Administration staff presented a series of adjustments incorporated into the draft, including elimination of $1.3 million from the 2026 budget and the contemplated use of $1.5 million in general fund reserves; staff also noted no utility rate increases were proposed and that a PUC rate case affecting customers outside the city remains pending. The timeline for budget adoption includes a Dec. 9 second reading and final vote.

Council also took first reading of an ordinance to levy 12.64 mills for real‑estate tax in 2026, a rate the administration said imposes no change from the 2024 tax. Councilor Royal said the bill "does what it says on the bill."

Separately, council approved Administration Bill 15‑20‑25 to raise annual compensation for Lancaster City Council members from $8,000 to $10,000; councilors discussed the timeframe and confirmed the increase will take effect in 2028 after correcting a typographical error in the printed agenda that had listed 2026.