Lincoln City Council Asks For $58-Million Bond

The Lincoln City, City Council approved sending a $58 million no-wrap bond measure to November ballot. Voters will decide this November whether to approve up to $58 million in general obligation bonds for a new civic complex, after the City Council narrowly backed the higher bond amount and a “no wrap” financing structure on a 4–3 vote.

Resolution 2026-19, approved at the end of a lengthy discussion, calls for a bond measure that would fund a new city hall and related civic facilities. The final motion set the maximum bond at $58 million, using a "no-wrap" structure rather than tying the new debt to the existing sewer bond.

Earlier in the meeting, staff walked the council through three development options and their tax impacts, as well as the public feedback gathered through two town halls and the city’s online “Engage” platform. Across all three outreach efforts, Option 3 — the highest-cost option centered on a new site and new building — narrowly came out on top with 38 combined votes, followed by Option 2 with 37, and Option 1 with 13.

Finance Director explains “wrap” vs. “no wrap”

A major point of confusion and debate on the council was whether to “wrap” the new bond around the existing sewer bond, which is scheduled to be fully paid off in fiscal year 2029–30.

Currently, property owners are paying about 40 cents per $1,000 of assessed value for the sewer bond. Under a wrap, the city would structure the new city hall bond so that the total bond levy stays flat over time, instead of spiking in the early years and dropping later.

The finance director explained it this way:

“If we do a wrap, so the sewer levy is 40 cents. If we went with a $58 million option, we would add another 74 cents levy, so that the levy would be $1.13, and it would stay $1.13 even once the sewer bonds are paid, because then we would start assessing the full $1.13 for City Hall.”

Without the wrap, taxpayers would see a higher combined levy for the first three years, and then a drop when the sewer bond expires. “If we don’t do the wrap, then we still have a sewer levy of 40 cents, and we would levy $1.07 for City Hall. So the first three years, the levy would be about $1.48, and then it would drop down in the fourth year to $1.07,” she said, for the next 27-years.

In simple terms, wrapping the bonds smooths out the tax rate at the cost of paying more in interest over the life of the bonds. No-wrap means a short-term bump in taxes but lower long-term cost.

Several councilors voiced concern about putting a large bond in front of voters while many residents are struggling with rising utility bills and other costs. Councilors also wrestled with how big of a project the city should ask taxpayers to support, and what trade-offs might come with trying to cap the total cost.

Final motions and split vote

The council first considered a motion to approve the bond resolution with a maximum amount of $45.1 million and a no-wrap structure. That motion failed on a 2–5 vote, with several members signaling they preferred the larger project. A second motion set the maximum at $58 million, again with no wrap. The $58 million no-wrap bond resolution passed 4–3.

The approval of Resolution 2026-19 sends the bond question to the ballot, but some details are still being finalized. Finance director Bridges noted that the ballot title and voter pamphlet language are not yet complete and will be finished once the council’s choices are fully incorporated.

Staff will now work with the city’s financial advisor and bond counsel to finalize the ballot materials and cost estimates based on the no-wrap structure and the $58 million maximum. The bond measure is expected to appear on the November general election ballot, where voters will decide whether to move forward with the project and the long-term tax commitment that comes with it.