Lebanon council debates merging water, sewer and streets into a single Public Works department amid a multi‑year revenue shortfall

Mayor Charlie Whitty called the council to order and the meeting turned quickly to a proposal to combine the city’s water and sewer operations with its streets and alleys into a single Department of Public Works.

Jess, who presented the city’s financial analysis, told the council that state funding cuts and other trends have left Lebanon with a substantial revenue gap. “From 2012 to 2024, since they have made this cut, Lebanon has lost $3,854,951 from the state,” she said, and later summarized the near‑term picture: “If you look closely … our budgeted money from our actual money received this year, we are short $593,000.”

Jess said the administration’s proposal would create a superintendent/public works director post, give current water, sewer and streets employees priority for positions, and evaluate equipment and staffing to reduce duplication. She estimated the consolidated payroll and benefits could be organized so the city saves roughly $312,000 a year: “If the director was able to stay within this budget, you’re talking about a $314,000 headed in the right direction,” she said.

Supporters argued the change would let the city allocate equipment and labor more efficiently, pursue grants more effectively and begin proactive infrastructure work. “We need to be making a plan to be able to start getting ahead of these things instead of being reactive,” Jess said, citing failing sidewalks and sewer lines.

Opponents and skeptical council members warned the proposal could mean layoffs or reduced pay for long‑tenured employees and said the council lacked the detailed analysis to approve a rapid conversion. One council member pressed that changes tied to union seniority could limit immediate savings; another said May 1 was an unrealistic deadline for full implementation and asked for more benchmarking with similar municipalities.

Penny, the city’s water/sewer official, described maintenance work already underway and warned that while some water/sewer funds exist, past interfund borrowing and legal constraints limit flexibility. She noted the city has done smoke testing, lining and other sewer repairs but that capital projects are hindered when budgeted capital outlays are not released.

In the discussion council members repeatedly asked for additional comparative data and for the administration to bring an ordinance and budget language back for committee review. The mayor moved to take the matter into executive session for personnel and property discussions, and the council approved that motion; no final restructuring vote was taken tonight.

Votes at a glance: - Omnibus agenda: approved by roll call. - Garden Club temporary posts (Hometown Mini Park): motion to approve temporary posts/painting — approved by roll call. - Street closures for Looking Glass Playhouse (May 9): approved by roll call with conditions on parking and handicap access. - Motion to enter executive session (personnel and real estate): approved by roll call.

What’s next: Council asked staff to bring a proposed ordinance and suggested code language to committee for review, provide comparative budget metrics, and return with a more detailed plan before any final vote on consolidation.