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Council hears preliminary budget showing roughly $315,000 general-fund shortfall
Summary
City staff presented a preliminary budget estimating about $2.4 million in revenue and a roughly $315,000 gap in the general fund; the administration set a public hearing for April 6 and a final vote for April 13 and urged council guidance to finalize a balanced proposal.
Lebanon City staff presented a preliminary budget to the council committee that projects approximately $2.4 million in revenue and a roughly $315,000 shortfall in the general fund.
"This is the cold hard truth whether we like it or not," Jessica said in the committee meeting while walking members through revenues and nonnegotiable costs, adding that the preliminary draft includes salaries, insurance and benefits but no funding for sidewalks, road projects or other discretionary capital.
Jessica said the city has borrowed from several internal accounts in recent years, leaving constrained reserves. She described certain funds as restricted — for example, business-district and TIF money must be spent within those districts — and said staff is still working to gain access to the state audited-business reporting system that could identify unreported local sales and use tax revenue.
The timeline for local action is tight: staff said the draft budget will be posted for public review beginning March 24, a public hearing is scheduled for April 6 and the council aims to vote to finalize the budget on April 13 to meet state filing requirements.
Council members pressed staff on options to close the gap. Committee discussion ranged from modest administrative savings and encouraging paperless billing to larger structural changes addressed elsewhere on the agenda. One councilor summarized the tone of the meeting bluntly: "We're broke as hell," a phrase repeated in the discussion as members assessed options.
Staff said the preliminary document intentionally lists only nonnegotiable items and that some project funding could be postponed or reallocated if the council gives direction. Jessica asked members to identify cuts or alternatives so staff can prepare a balanced proposal for the next meeting.
The committee did not vote on the budget tonight; members were asked to review the posted draft and return with questions and recommendations ahead of the public hearing.
The council will post the preliminary budget materials on the city website and will consider public comment at the April 6 hearing before voting on April 13.
