The 2024-25 proposed Lincoln City budget does not include employee layoffs or service reductions, and there are no new departments planned or new service additions, according to Lincoln City City Manager Daphnee Legarza.
The proposed $21,095,207 spending document reflects a $157,993, or 0.7 percent increase over the 2023-24 budget of $20,937,214. See the full budget proposal at the city’s website.
Fee increase
“The proposed budget does include a 5 percent increase in water and sewer fees,” Legarza said. “This increase is necessary due to increased operational costs, and due to need of funds for capital maintenance of the water and sewer infrastructure.”
Legarza said the most significant factors influencing the proposed budget include revenue growth, and revenue growth in FY2023-24 has not been as strong as in previous years.
The overall net change in total revenues from the current year budgeted amount to the proposed budget amount is approximately $1.7 million, less than a two 2 percent increase, predominately due to a decrease in Transit Room Tax (TRT) and intergovernmental revenues.
“We believe the TRT is stabilizing and no longer increasing like we have seen in years past,” Legarza said. “Also, our marijuana tax allocation from the state has decreased.”
The lack of specific revenues is leading to financial challenges.
“There is no funding specific for street capital, which is needed; the General Fund is subsidizing street capital by $500,000 in the proposed budget,” she said. “The biggest change in the proposed budget is funding for the new Schooner Creek Discovery Park — the proposed budget includes $4,571,326 for completion of phase 2 construction of the new park.”
The city’s interest earnings are significantly higher than FY2023-24 budgeted amounts, and due to the cost-conscientious oversight of program and project cost containment by the city’s executive team, Lincoln City started 2024 with a healthy beginning fund balance, according to Legarza.
“The city continues to maintain a strong financial position while sustaining current program service levels and continuing our long-term planning efforts,” she said.
Looking ahead
According to Legarza, the city is utilizing current opportunities to invest in long-range planning to enable the city to better forecast future need and have solid, long-term capital plans.
“This will sustain and enhance the long-term viability and prosperity of Lincoln City,” she said. “As such, we are proposing to continue our efforts to complete the Water, Sewer and Stormwater Plan and System Development Charge (SDC) updates, a Source Water Protection Plan, an Alternative Analysis for complying with our 2020 NPDES Permit, a Climate Action Plan, and Greenhouse Inventory.”
The budget proposal also includes budgeting funds for upgrading the city’s tsunami sirens and replacing switches for emergency fueling, and the city plans to continue lobbying the Oregon Legislature for funding for Lincoln City initiatives and any funding area deficiencies that exist.
“We are closely monitoring and supporting the Oregon Mayor’s Association’s proposal for the direct allocation of ongoing funding to cities based on capita, to fund homeless reduction efforts,” she said.
The city’s budget hearing process continues this month at City Hall, 801 SW Highway 101. The next public meetings are scheduled for May 6 and May 20. See the city’s website for specific times.
Legarza said the plan is to present the approved budget to city council at the June 10 meeting for review, adjustments and adoption.
The Lincoln City Budget Committee members are Mayor Susan Wahlke, Council President Judy Casper, Councilor Mitch Parsons, Councilor Riley Hoagland, Councilor Rick Mark, Councilor Todd Barker, Councilor Marci Baker, Adam Folz, Kevin Hohnbaum, Mark Neighorn, Jules Laspa, Diana Bates, Estle Harlan, and Kennedy Stentz.
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