Lancaster City Council gave final approval Tuesday night to its operating budget for the fiscal year that begins July 1, adopting a tax rate of 221.5 mills and a reduced sales tax credit factor that will raise property taxes for most homeowners. The 4-1 vote came after a public hearing drew comment on the budget and after council rejected, for lack of a second, a motion to cut police overtime funding and a proposed judicial department position before passing the budget as presented.
Council also approved a resolution declaring an aging tractor and three dozen plastic shipping totes at the wastewater treatment plant surplus property, clearing the way for their sale, and approved minutes from two earlier meetings without changes.
Public hearing draws comment on budget, not skate park
Before voting on the budget, council opened a public hearing on the proposed fiscal year 2026-2027 budget, as required under state law. Ron Brown, who identified himself as president of an organization in Lancaster and a longtime investor in the city, told council he opposes raising taxes and instead encouraged the city to pursue economic development and downtown revitalization to generate revenue. He pointed to neighboring towns including Fort Mill and Kershaw as examples of inviting downtowns with active retail space that he said Lancaster should aim to match. During the general citizen comments period that followed the hearing, a Lancaster County resident who said he runs the nonprofit Carolina Change Foundation spoke in support of a public skate park, telling council that wheel sports such as skateboarding, BMX and rollerblading offer young people a healthy outlet and that the city should consider repurposing an underused tennis or basketball court for the purpose. He said a frequent advocate for the project, who he said had been ticketed for skateboarding in an area he believed was permitted, was not present at Tuesday’s meeting. No formal action on a skate park was on the agenda.Council adopts FY 2027 budget on 4-1 vote
The budget ordinance, designated O26-08, received its second and final reading Tuesday. The measure had passed first reading on June 16 by a 4-2 vote, with two council members opposed. By Tuesday’s second reading, the lineup of members present had shifted, and the ordinance passed 4-1. Finance Director James Absher told council the only change since first reading was the addition of $50,000 in the budget, funded from reserves, to replace the city’s 911 dispatch recorder, which he said was reaching the end of its useful life. The adopted budget sets the city’s property tax rate at 221.5 mills, up from 209.8 mills the prior year, and lowers the local option sales tax credit factor to 0.005750 from 0.006500. Absher told council the credit factor reduction was necessary because the reserve funds that had been used to subsidize the credit in recent years are largely depleted. He said the city had been carrying an outsized sales tax credit reserve, which the city’s auditors flagged as out of compliance with state requirements, and that the credit factor had been reduced gradually over the past two budget cycles to bring it in line. Absher walked council through the practical effect for homeowners. He said the city’s average home value is approximately $200,000, and that eliminating all budgeted raises and longevity pay, an option he did not recommend, would save a property owner with a home of that value roughly $92 a year but would mean no raises for any city employee. He said growth in new home construction over the past year added roughly $400,000 in new tax revenue, while the increase in the millage rate added a comparable amount, and he cautioned council against a narrative that growth alone explains the increase, saying new development represents a meaningful share of the additional revenue rather than an unrelated cost driver. The adopted budget includes a 3 percent cost of living raise for all city employees and a longevity pay scale for employees with five or more years of service, ranging from an additional 50 cents per hour at five years of service up to $3 per hour at 30 years. Absher said the cost of living adjustment is intended to track inflation rather than represent real wage growth.Amendment to cut overtime and judicial costs fails for lack of a second
During discussion on the budget, one council member moved to direct staff to revisit the police department’s overtime budget and a proposed change in the judicial department, which includes reclassifying a part time judge position to full time and adding a new position at a cost of $33,000. The member argued the two changes together could save the city roughly $80,000, or about 2 mills, and ease the impact of the tax increase on residents. A council member who chairs the finance committee pushed back, saying the police department has logged 523 hours of overtime so far this fiscal year because of staffing shortages and coverage gaps, and that public safety departments typically carry the largest share of any municipal budget. The exchange grew pointed, with the finance chair saying the member raising the amendment had not approached her directly to discuss the budget before the public meeting. The member who proposed the cuts said he had not solicited public comment on social media to pressure council. The amendment motion failed when no other council member offered a second. Council subsequently voted to call the question on the original motion to adopt the budget, then approved the ordinance 4-1, with one member voting no. The budget also addressed several rate increases for city utility customers, including a 13.3 percent increase in the hauled wastewater rate to $85 per 1,000 gallons, a $400 increase in the replacement sewer connection fee to $1,000, and new monthly charges for roll-away waste containers. A 3 percent fuel surcharge and a 4 percent increase in cemetery burial fees were also included.Resolution declares wastewater equipment surplus
Council also approved Resolution R26-13, declaring an aging tractor and a stock of plastic shipping totes at the city’s wastewater treatment plant surplus to the city’s needs and authorizing their sale. City Administrator Flip Hutfles said the city periodically disposes of equipment that has outlived its usefulness, with proceeds typically returning to the general budget. A treatment plant staff member told council the tractor, identified in the resolution as a 1980 Ford model, was replaced roughly three years ago and remains in working condition but is no longer needed. The totes, large plastic containers used to receive bulk deliveries at the plant, have accumulated because the supplier does not always retrieve them. The resolution lists 34 of the containers for disposal. The motion to approve passed unanimously.Council praises Red Rose Festival and Juneteenth turnout
During the period set aside for questions on monthly department reports, council members and Mayor Alston DeVenny took time to recognize city staff for the Red Rose Festival and Juneteenth celebrations held in recent weeks, both of which they said drew record or near record crowds. Council members thanked the police, fire and EMS departments along with other city staff for the long hours worked to support the events. Council members also asked staff for updates on a long discussed regional landfill arrangement with the county, which Hutfles said remains in negotiation with a response expected from the county attorney within a few weeks, and on a fire damaged house at White Street and Barr that has become a safety concern. Hutfles said the city’s site remediation contractor expects to demolish the structure early in the new fiscal year. A council member also flagged four outages among the city’s street lights on Brooklyn Avenue for staff follow up. Council adjourned the meeting following the budget vote. The new fiscal year and the adopted budget take effect July 1.Sign up for our Sunday Spectator. Delivered to your inbox every Sunday, with all the news from the week.
