Lincoln Budget/Measure K FAQ
Q1: What is the Issue?
A1: The City of Lincoln has eliminated 64 positions in the past two years, affecting
the community’s services including:
14 public safety positions
eliminating virtually all crime and gang prevention programs
closing one of three fire stations
reducing library hours and recreational services
An additional $2.4 million in cuts to all City services were made to the 2010-2011
budget. To assist with this decision-making, the City conducted four well attended
community workshops and surveyed the community to effectively
prioritize services based on resident feedback. More than 1,100 surveys were
received with excellent resident input.
Q2: What is the impact of Lincoln’s current budget?
A2: Residents clearly communicated that the City’s top three priorities should be
preserving 9-1-1 response times for police and fire, maintaining the number of
police officers serving our community and local library services.
Consequently, the City’s recently adopted 2010-2011 budget included eleven
immediate lay-offs, mostly from the Administrative Services and Development
Services departments.
Other immediate program and service reductions contained in that budget
include:
Reduced Library hours.
Eliminated Teen Recreation Programs.
Fireworks were eliminated.
No funding of Non-Profit organizations.
Reduced Day Camps and classes.
Q3: What’s the problem?
A3: Unfortunately, an ongoing General Fund structural deficit projected to be
approximately $2 million in 2011-2012 still exists. This is more than the
combined budgets of our recreation and library services. The Council also chose
to use one-time funds to maintain three police officers and a police sergeant
through the end of the year, but without a reliable and ongoing source of new
revenue, these police officers will be laid off at the end of the calendar year.
Q4: What does that mean for Lincoln?
A4: The City can opt to make more cuts in services immediately, or identify
alternative sources of revenue that cannot be taken by the State. After much
discussion and deliberation, the City Council chose to place Measure K, a
temporary revenue measure, on the November 2010 Ballot.
Q5: What is Measure K?
A5: Measure K is a temporary, 3.75% local Utility Users Tax on gas, electricity, cell
phone, land line, water, sewer and refuse hauling that will help the city generate
approximately $2.9 million a year.
Q6: What utilities will be taxed?
A6: Gas, electric, water, sewer, trash pick-up, and telephones (land and cell).
Q7: How much would Measure K cost?
A7: Each resident’s utility usage varies, but for every $100 a resident spends per
month on utilities, the temporary tax would cost an additional $3.75. If someone
were to spend an average of $650 a month on utilities, they would reach the
annual cap of $300 and be able to apply for a refund on these funds up to one
year later.
Q8: How long will Measure K be in place?
A8: Four years. Measure K will expire after four years and can only be extended by
voters.
Q9: Is there a cap in place for businesses or other non-residential users?
A9: Yes. The measure has an annual cap of $6,000 for non-residential users.
Q10: What will happen without Measure K?
A10: Without Measure K the City will cut three police officers and a police sergeant at
the end of the 2010 calendar year, and then begin next year’s budget process,
which will require making the additional $2 million in budget cuts in order to
prevent the city from utilizing the last of our reserves.
Q11: What is the City currently doing to reduce salaries and benefits?
A11: Most salaries and benefits, including those of management, were reduced this
year by 13% from previously negotiated rates. We will also implement a lowercost
retirement benefit for future new hires.
Q12: Can existing union contracts be cancelled or changed?
A12: By law, the City cannot arbitrarily change legally binding contracts or
agreements.
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