This Town Council directed that a zero-based budget be prepared for Fiscal Year 2027. After reviewing the Budget Committee process, the budget documents presented to the Council, and the financial information available to us, I have concluded that the Council has not been provided the zero-based budget it requested.

Based on the following,

1. The Council directed the preparation of a zero-based budget;

2. A zero-based budget has not been presented to the Council;

3. Lincoln's population has remained stagnant since FY2021;

4. Inflation from FY2021 through FY2026 has been approximately 20%;

5. Many taxpayers have experienced substantial increases in their property taxes during recent years;

6. Questions remain regarding whether all taxable properties are being assessed and taxed accurately and consistently;

7. The Town is approaching five years without completed annual audits;

8. Significant economic development projects currently under construction are not expected to generate meaningful property tax revenue for at least the next 24 to 36 months; and

9. The Council has not been provided sufficient department-level financial data to conduct a true zero-based review;

Therefore, I suggest the FY2027 operating budget be reset using FY2021 Council-adopted budget levels plus 34 percent, with the following departmental appropriations would be:

Department FY2027 Manager Request FY2027 Budget Proposal (FY2021 + 34%) My FY2027 Proposal

Town Manager $204,587 $184,550 $185,000

Clerk $260,648 $212,108 $250,000

Economic Development $0 $120,600 $0

Finance $450,382 $320,799 $368,500

Assessing $75,325 $66,354 $75,325

Code Enforcement $75,112 $62,810 $75,112

Police $1,754,142 $872,723 $1,230,210

Fire / EMA $2,095,673 $1,580,987 $1,670,246

Fire Station $84,700 $14,740 $40,000

Utilities $517,590 $530,696 $517,590

Public Works $1,288,077 $940,541 $1,090,507

Transfer Station $587,690 $623,101 $587,690

Landfill $1,500 $1,340 $1,500

General Assistance $26,975 $14,950 $15,000

Cemetery, Parks & Recreation $315,718 $280,207 $280,207

Library $192,786 $203,088 $193,500

Personnel $2,198,891 $1,544,279 $2,145,634

Airport $88,452 $80,000 $80,000

Debt Service $268,628 $268,628 $268,628

Capital Improvements $920,807 $942,268 $875,000

FY2027 Totals $11,407,683 $8,864,769 $9,949,649

My proposal recognizes inflation, increased costs, and reasonable growth since FY2021 while providing a practical way to reset the budget until the Council receives the true zero-based budget it previously requested.

This proposal establishes a clear starting point for future budget discussions and gives both the Council and taxpayers a transparent method for evaluating future spending requests.

The FY2027 budget currently before the Council totals approximately $11.4 million. My proposal would reduce that amount to approximately $9.95 million, a difference of roughly $1.46 million.

These reductions are not arbitrary. They are based on FY2021 budget levels with a 34 percent increase applied across departments. That 34 percent increase is greater than the cumulative inflation experienced during that period and provides departments with significant growth above their FY2021 funding levels.

I believe this is a fair and reasonable approach given where the Town stands today. We are approaching five years without completed audits, questions remain regarding assessments and long-term financial planning, and the Council has not yet received the detailed information necessary to conduct a true zero-based review of every department.

Until that information is available, I believe this proposal represents a responsible balance between maintaining essential municipal services and protecting Lincoln taxpayers from further unnecessary tax increases.

In closing, I believe we need to be realistic about where Lincoln stands financially today.

While Biofine and Form Energy may provide significant future tax revenue, that revenue is not available to offset the FY2027 budget before us today. When those projects are paying substantial property taxes, future Councils will have more options than we have right now.

But that is not where we are today.

We have taxpayers who have seen substantial increases in their property tax bills. Before we ask them to pay even more, we owe them clear answers, complete information, and a budget that reflects fiscal discipline.

My FY2027 budget amendment proposal maintains the essential services our residents depend on while providing much-needed tax relief to the people who are paying the bills today.

I respectfully ask my fellow Councilors to support this proposal and demonstrate that fiscal responsibility, accountability, and affordability still matter in the Town of Lincoln.

Thank you.