Lincoln County commissioners continue FY2025–26 budget talks as staff flag SB116, PERS and dispatch shortfall

The Lincoln County Board of Commissioners continued work on the tentative FY2025–26 budget at a special session on April 24, where staff warned that interpretations of SB116 and changes to the Public Employees’ Retirement System will affect pay scales, and officials raised concerns about a large shortfall in the county dispatch fund.

Dan McArthur presented the draft budget and said the tentative version has been submitted to the state. McArthur told the board, “it all comes down to how people interpret the CPI index,” referring to SB116 and the different ways offices have budgeted potential salary increases. He asked whether the board wants to keep the existing step/grade salary system or make changes that would shift pay for newer hires and step levels.

Why it matters: several elected offices have built increases into their 2025–26 requests while others have not, and changes to step-and-grade timing or starting levels would materially change payroll costs. Recorder/Auditor Amy Elmer said PERS rate changes require a recalculation of the step/grade scale in July and suggested lengthening grade steps ‘‘from a 15 to 20,’’ which would spread future increases over more years and affect personnel costs. Specific figures discussed included an approximate $80,000 new wage for the Clerk, Assessor, Treasurer and Recorder positions, a proposed sheriff salary of $97,000, and a district attorney salary of $135,000.

Commissioners and staff also reviewed capital requests and special-project funds. McArthur and Elmer recommended meeting department heads to prioritize outlays. Planning and Building Director Cory Lytle told the board his fleet-vehicle request can be reduced to $35,000. IT Director Tracy Lee said deferred technology purchases are now mandatory, noting core finance servers are nearly 10 years old and that switching gear, firewalls and additional storage are required; he warned inflation and tariffs could raise those costs further.

The board discussed funding for courthouse projects and special projects in Fund 129, including lighting and a restroom addition. A transfer of $300,000 to Fund 129 is planned for FY26 but McArthur said the transfer will be adjusted to match possessory-use tax receipts from the Air Force and cannot be reallocated once made.

A disputed accounting item emerged around county dispatch funding. Eric Holt, LCFD chief and emergency manager, said a $100,000 deposit for dispatch service was not meant to be a recurring payment; McArthur removed that amount from Fund 64 income. Commissioners, Holt and Sheriff Derek Foremaster discussed whether EMS providers must pay into the county dispatch system. Participants said dispatch costs about $500,000; one approach discussed was allocating roughly 15% of call-volume costs across EMS, police and fire services. McArthur said Fund 64 currently shows a net loss of more than $867,000 and projected the General Fund ending balance at $692,550, which would not cover the deficit and still meet a statutory 4% reserve requirement.

What the board directed next: no formal votes were taken. The board agreed to continue negotiations on pay scales, meet with department heads to prioritize capital requests, and have McArthur and Elmer refine ending-fund and transfer numbers. McArthur committed to compiling 10 years of property-tax history for clinic-related revenues to help determine how much the county can provide to cover clinic debt or operations.

The board set a follow-up budget meeting for May 6 at 9 a.m. and adjourned at 12:18 p.m.