Lancaster City Council met in work session Tuesday evening, June 9, receiving a detailed briefing on the proposed fiscal year 2026-2027 budget that will raise taxes for most property owners, approving on second and final reading a rezoning that clears the way for a pediatric therapy clinic to open on Chesterfield Avenue, and accepting a $10,000 grant from the Duke Energy Foundation for the police department.
The session, held at City Hall, drew council members and department staff for what Finance Director James Absher described as a tight budget shaped by state-imposed millage caps, rising personnel costs, and the depletion of a local option sales tax reserve that had previously cushioned residents from larger increases.
Duke Energy Heroes Grant
Before turning to budget business, council received a check presentation from Tyson Wright, Duke Energy’s government and community relations district manager, who delivered a $10,000 Heroes Grant to the Lancaster Police Department. Wright said the grant, awarded for at least the third or fourth consecutive year to the city, will fund a utility trailer and barricades. The equipment will allow officers to secure downed power lines during storms without stationary personnel standing guard, freeing them to respond to other calls while Duke Energy line crews work.
Mayor Alston DeVenny thanked Duke Energy for its partnership and acknowledged grant writer Aaron for the department’s consistently strong applications.
Forging Strong Fathers Proclamation
Council also recognized June 2026 as Forging Strong Fathers and Families Month. Mayor DeVenny issued a mayoral proclamation in recognition of the South Carolina Centers for Fathers and Families and the local A Father’s Way program, which operates in cooperation with York County. The proclamation was presented to representatives Tyrone Falner and Kareem Edwards.
Fiscal Year 2026-2027 Budget
The budget presentation occupied the bulk of the meeting. Absher told council the spending plan is built around what state law allows the city to raise, and that much of the anticipated tax increase residents will see on their bills traces not to a millage hike but to a reduction in the local option sales tax credit.
The millage cap for fiscal 2026-2027 is 5.59 percent, reflecting a 2.63 percent consumer price index figure and population growth of 2.96 percent. The allowed increase translates to 11.7 mills, which at the city’s current mill value of $40,802 will generate approximately $477,000 in additional property tax revenue. The city also saw assessed value grow by $1,887,623 during the last reassessment cycle, generating an additional roughly $396,000.
Even with that combined increase of roughly $873,000, Absher said personnel costs alone consume the majority of new revenue.
For a $100,000 owner-occupied home, the projected city tax bill rises from $189.20 to $311 for the upcoming year, an increase of $121.80. Of that increase, $46.80 reflects the millage increase and $75 reflects the reduction in the sales tax credit, which drops from $650 to $575. Absher explained that state law requires the city to distribute its local sales tax collections back to property owners as a credit each year, and that the credit had grown above a sustainable level in prior years when reserves were built up. Working through that reserve now means a smaller credit regardless of the millage decision.
“Whether council decides to raise millage or not, taxes are still going to go up $75,” Absher said.
For a $100,000 property assessed at the 6 percent rental rate, the projected bill rises from $608.80 to $754.
Personnel
The budget funds one new position, a driver for a new residential garbage truck expected to arrive after January 2027, budgeted at half-year salary. Several other positions were reclassified rather than added. In municipal court, the lead associate judge position is being elevated to assistant court administrator at an added cost of $11,007, a part-time judge is being converted to full-time at an added cost of $37,872, and the municipal court clerk is being reduced to part-time, saving $19,143. Absher said the changes are intended to reduce overtime the police department absorbs handling court matters. In the water department, a meter technician is being upgraded to utility worker I at a cost of $2,800, and in vehicle maintenance a mechanic is being upgraded to vehicle mechanic II at a cost of $2,800.
All employees will receive a 3 percent cost-of-living adjustment. In addition, the budget introduces a longevity pay scale for employees with five or more years of continuous city service: 50 cents per hour added at five years, $1 at 10 years, $1.50 at 15 years, $2 at 20 years, $2.50 at 25 years, and $3 at 30 years. Absher said the scale addresses a concern raised in the city’s last compensation study that longevity was not being recognized in employee pay.
Combined salary and longevity costs total approximately $400,000 in the general fund and $200,000 in the gross revenue and public utilities funds before fringe benefits, which add another 26 to 29 percent depending on position classification.
Council members pressed questions about the court restructuring and whether a city planner position, unfilled for years, could be restored given the city’s growth. Absher said the planner’s estimated all-in cost of $80,000 to $97,000 was not available in the current budget cycle, and that code enforcement staff had been added instead to handle inspection volume tied to growth. One council member said the absence of a city planner is particularly problematic now. “With all the growth we’ve got, this is a terrible time not to have a city planner,” he said.
Capital Goals and Fire Station
Absher addressed council’s stated goal of constructing a new fire station in the northern part of the city. The proposed budget does not include funding for construction. He said the staffing cost associated with the station, estimated at 12 additional personnel across three shifts, is not yet supportable from current revenues.
Fire Chief Justin McLellan, speaking during the meeting, noted that existing staff could be reorganized to put personnel in the new station initially, without the full complement of 12 new hires, using the trucks the city already has on order. Two fire apparatus are expected to arrive in June 2027. The city is continuing to work on acquiring land for the new station and advancing its design.
The budget does include $31,000 to replace the HVAC unit at the Springs House, $365,000 to replace the front porch and columns at the Springs House, and $75,000 for a further condition assessment of the structure. Those funds will come from the hospitality tax fund, which is expected to draw down approximately $450,000 of reserve for Springs House and other items in the coming year. A $25,000 allocation for a Touch-a-Truck community event was also included as a council-directed goal.
Fee Increases
On the gross revenue and utilities side, the budget proposes no water or sewer rate increases, projecting that 3 percent revenue growth from new meters being installed and utility growth will be sufficient. Two fees are being raised: hauled wastewater dumped at the treatment facility increases 13.3 percent to $85 per thousand gallons, and the replacement sewer connection fee increases $400 to $1,000.
Solid waste fees are rising across several categories in response to diesel fuel costs. Residential rollout container rates increase $2 per month on the first container to $34 and $4 per month on additional containers, equalized to $34 per container. Commercial rollout rates increase $2 per month on the first container to $39 and $4 per month on additional containers to $39. The fuel surcharge on hauling increases from 5 percent to 8 percent. The payment delinquency fee increases from 2 percent to 5 percent. Bulk container minimum charges increase $5 per month to $50. Roll-off containers increase 10 percent by container size. Private hauler tipping fees at the transfer station increase $5 per ton. Cemetery burial fees increase 4 percent.
Absher said he will flag any changes made between now and the budget’s second reading. The budget goes to first reading at the regular council meeting next Tuesday, June 17.
Citizen Comments
During citizen comments, Andy Michael of 1640 Logan Road returned to address council on behalf of Lancaster Skateboard. He said the group has gathered 274 signatures from residents supporting skateboarding opportunities in Lancaster and asked council to direct staff to explore a permitting process for temporary skate park events at existing city parks including Buffalo Park, Crescent Blackman Park, or the Municipal Justice Center Park. Michael said the group would supply its own ramps, insurance, and volunteers at no cost to the city and was not asking for a permanent facility at this stage.
Representatives from the Lancaster County Council of the Arts also addressed council to share information about the organization’s summer arts and sciences camp, which began this week at sites in Lancaster, Indian Land, and Kershaw, and a Creative Collaborations art exhibit at the Springs House featuring works by consumers of Chester-Lancaster Disabilities and Special Needs paired with local artists. A reception at the Springs House is scheduled for 3 p.m. Sunday, June 14.
Ordinance 026-07 Second Reading
Council unanimously approved on second and final reading Ordinance 026-07, rezoning a 0.478-acre parcel at 207 Chesterfield Avenue from B-2 Neighborhood Commercial to B-1 Central Business. The property, owned by James C. Crumpler and formerly occupied by Isley Surveying Company, will become home to Butterfly Pediatric Therapy, a pediatric outpatient occupational therapy practice. Council approved the first reading at its May 26 regular meeting. The rezoning takes effect immediately.
The council adjourned following the vote.
