At their June 17 session, the Lancaster City Council discussed and approved several key items including the results of a comprehensive salary classification study, updates to the 2025–26 fiscal budget, projected utility and service fee increases, and funding allocations aligned with strategic city goals. The meeting concluded with the introduction of a second-reading motion for the budget, followed by adjournment.
Agenda Summary & Council Actions
1. Salary Classification Study
- Purpose & Methodology The city engaged a third-party consultant, Archer, to conduct a Comprehensive Position Questionnaire (CPQ). Employees and supervisors detailed daily responsibilities, planning needs, fiscal impact, and skill levels.
- Reclassification Outcomes Several job classifications (e.g., municipal park workers, accounting specialists) were re-graded. Some positions saw higher pay bands due to enhanced market competitiveness, while others had minimal change. Notably, no roles received pay reductions—every position saw at least a modest increase (e.g., custodians ≈ 27%, sanitation workers ≈ 32%). Example: accounting specialists saw minimum salary increase from $36,912 to $38,769 (≈ 5%) with proportional midpoint and max adjustments.
- Implementation Strategy Council directed staff to produce a clear employee communication (e.g., memo and one-on-one sessions) to explain grade changes relative to old pay structures and market data. A cost-of-living increase mechanism based on CPI was also discussed for future incremental adjustments.
2. Insurance Premium & Pension Funding
- Health Insurance Lancaster’s municipal pool experienced favorable health trends, lowering the city’s experience factor, which will reduce the city’s contribution as of January 2026. Employee premiums, typically deducted pre-tax, will adjust proportionally—e.g., 2.5% of individual or family plan premiums.
- Retirement Contributions No changes to employee contributions, though employer costs will adjust per regulatory requirements.
3. Revenue Analysis: Tax Base & Millage Rate
- Assessed Values City-wide assessed value increased by an average of $6,600 per property—driven by new construction and ownership transfers totaling approximately $1.2 million in taxable value.
- Millage Rollbacks To comply with South Carolina’s 15% assessment cap and soften the impact of higher valuations, citywide millage was rolled back from ~2.316 to 2.099. Policy maintains consistent tax revenue year-over-year, with future revenues tied to new property growth and sales tax credits.
4. Utility & Fee Adjustments
- Water & Sewer A $1 monthly hike to base water charges, plus a 3% per 1,000-gallon usage increase, aligning with a 2.95% CPI change and recent rate hikes by Lexington County Water & Sewer.
- Sanitation Residential roll-out container fees will rise by $1/month; additional containers increase by $5/month. Commercial container fees will also increase to standardize previous rate discrepancies.
- Service Charges
- Debit/credit transaction fee: 3% of total transaction amount
- Late payment/contractor delinquency fee: 2%
- Medical waste transport surcharge: +$15/ton
- Solid Waste Repair Costs Anticipating major equipment maintenance, the solid waste fund’s repair budget will be increased by ~$72,145.
- Landfill Options Staff is evaluating bids for transfer station operations (e.g., Screaming Eagle vs. county landfill). Fee structure will be revisited in January when equipment lease and repair costs are clearer.
5. Strategic Goals & Capital Projects
Budget includes funding to support several City Council goals:| Strategic Goal | Allocation | Purpose |
|---|---|---|
| 1. Workforce Retention | $643,386 | Full funding of pay study and benefits adjustments |
| 2. Farmers’ Market | $350,000 | Design phase; overall project cost ~$4 million |
| 3. Craft/Buckley Park Upgrades | $126,750 + $30,000 | Engineering and facility repairs |
| 4. Fire Station Design | $750,000 | Architectural planning for a new station along new road corridor |
| 5. Development Standards | $50,000 | Creation of a Unified Development Ordinance |
| 6. Water Meter Replacement | $3.3 million | Automated, lease-to-own replacement program |
| 7. On‑Call Pay | $10.75/day or $75/week | Compensation for off-hours availability for public works/sanitation staff |
| 8. Downtown Beautification | $205,000 (electric billboard, lighting/trees, infrastructure planning) |
6. Juvenile Detention Cost Increase
The city revised its juvenile custody reimbursement line from $8,000 to $40,000, reflecting a new per-day cost of $175 (up from $50) with a cap of 25 days. The previous year, Lancaster paid for 260 juvenile custody days.7. Additional Budget Amendments (Ministerial Adjustments)
- Rolled over ARPA funds to cover MJC repairs ($500,000).
- Department-by-department rollovers for capital projects (e.g., wastewater bar screen, shop roof, DOT-related sewer line relocation).
- Added longevity pay adjustments ($16,000).
- Committed $15,000 to algae-management/mitigation efforts in Lake Watery via regional partnership with Rock Hill and York County.
Council Decision & Next Steps
- The amended budget will undergo a second reading at the next council meeting, scheduled Tuesday, June 24.
- A public hearing is scheduled for July 1 at 7:00 PM.
- Council then moved to adjourn following a unanimous roll call vote.
📝 Closing Thoughts
Council members praised staff and departmental leadership for their thoroughness and responsiveness—particularly in addressing employee compensation concerns during budget development. With strategic investments in people, infrastructure, and environmental stewardship, Lancaster appears positioned to sustain growth and quality-of-life objectives into the next fiscal year.Sign up for our Sunday Spectator. Delivered to your inbox every Sunday, with all the news from the week.
