Lancaster council reviews budget, funds pay‑study and approves rate and fee changes

The Lancaster City Council reviewed and moved to approve a proposed municipal budget that fully funds a citywide pay‑classification study and enacts several fee and rate changes affecting utilities and municipal services.

The city’s presenter explained the pay‑study process performed by Archer, saying employees completed a comprehensive position questionnaire and department heads reviewed the responses before Archer proposed new pay grades. The presenter said the study’s total cost is $643,386 and that the plan is intended to bring minimums, midpoints and maximums closer to market levels while rewarding longevity: “the minimum went up 5% ... some went up more than others,” the presenter said, adding the changes were funded in part by recent assessed‑value growth after a reassessment.

Why it matters: council members framed the pay changes as an effort to retain staff and align compensation with current labor‑market rates, but also probed the budget’s resilience if the economy weakens. One council member asked whether the city has a cushion if the economy contracts; the presenter said the increases are fundable for next year but that deeper recession would require mid‑year adjustments.

Utility and fee changes: the presenter described several consumer‑facing changes in the proposed budget. He said the city will begin charging a 3% transaction fee on credit/debit card payments, raise the water service minimum by $1 per month and apply a 3% per‑1,000‑gallon increase tied to consumption changes. The presenter illustrated property‑tax impact with an example: “for every $100,000 of market value, a person's property tax is gonna go up $15.20.” The package also includes an increase in delinquency and processing fees and a proposed $15 per‑ton charge for certain transfer‑station disposal accounts to better capture operating costs.

Capital and operating priorities: the budget includes planning and seed money for several capital projects. The presentation listed $350,000 in the TIP for downtown farmers‑market improvements (construction estimated at about $4,000,000), $500,000 for parking at the MJC site, approximately $126,000 for park restroom designs, and $750,000 for fire‑station design and site work. The city also proposed a lease‑purchase to replace water meters across the system at an estimated $3,300,000; staff said the new meters should pay back in about 5–7 years and reduce lost water because modern meters have no moving parts.

Other items: the budget accounts for higher juvenile‑housing costs after state changes (presenter said the per‑diem could rise from $50 to $175 with a 25‑day cap), ARPA‑funded rollovers for NJC repairs, and a proposed contribution to a regional algae‑mitigation fund (the presenter proposed $15,000 and discussed pursuing matching grant funds to address invasive algae in nearby lakes).

Council action: after discussion and final clarifications, the council took a motion and recorded a roll‑call vote. Council member Harris, Council member Marsh, Council member Miller, Council member Sowell and Mayor Deveny cast “Yes” votes; the motion carried.

What’s next: staff said the second reading/formal adoption was scheduled for the next meeting cycle (agenda and effective dates were discussed but not finalized in the transcript).