Lebanon — City officials reduced the cost of several proposed projects and cut others from Lebanon’s 2019 budget on Wednesday evening, saying the multimillion-dollar efforts were too costly for residents to shoulder.

The City Council voted unanimously to approve a $71.1 million budget for the coming year. The spending plan is about $3.4 million more than the $67.7 million budget in effect until Jan. 1, and it cuts down on plans to rehab City Hall and upgrade Lebanon’s sewer system.

Officials estimate the budget will cost taxpayers $11.22 per $1,000 of a property’s assessed value, which amounts to a 2.3 percent increase. Under that estimate, a property owner with a $250,000 home would pay $2,805.

The budget also accounts for an 8 percent increase in water rates and a 7.2 percent increase in sewer fees to pay for operational costs. The City Council approved those hikes, which take effect in the new year, earlier this month.

The final budget, as well as the reductions to capital improvements, were the result of a City Council review that begins every April and continues with meetings from November through December, Mayor Sue Prentiss said.

“We see a light at the end of the tunnel, but we need to replace the tunnel, too,” she said.

City Manager Shaun Mulholland said this was a difficult budget year, and he had to make tough choices to either put off projects or only partially fund them in his initial budget proposal.

“We’re getting things done. We’re not getting everything done, but we’re making some major progress,” he told the council.

One of those cuts was from a proposed $2.5 million sewer project that sought to alleviate deficiencies in a section of sewer that carries waste from downtown to the treatment plant in West Lebanon.

The project, along with changes to how Lebanon calculates its sewer limitations, was expected to expand the city’s sewer capacity east of the Terri Dudley Bridge.

But Assistant Mayor Tim McNamara said engineers recently identified one section of pipe in West Lebanon that could be upgraded for less than $1 million and provide many of the benefits of the larger project.

Replacing that one piece “will give us the greatest bang for the buck, the greatest return,” he said, adding that time could then be spent next year exploring where other improvements could be made.

City Councilor Karen Liot Hill agreed, calling the move a “really strategic investment” that “sends the message that the City Council is serious about addressing this issue.”

Officials also voted to spend $3.3 million to renovate City Hall, down from the city manager’s $3.9 million proposal. The construction, which has been pushed back for several years, was planned to improve access to the building, increase energy efficiency and upgrade work spaces.

But Mulholland said he’s not sure exactly how the money will be used, largely because the city hasn’t yet paid architects to fully develop plans and schematics.

However, he said, first priorities will include repairing structural problems in the roof and fixing a collapsed drainage pipe under the building.

City Hall and its employees are suffering from several key issues, including an inefficient HVAC system, poor layout and little to no energy efficiency, Lebanon Associate Planner Rebecca Owens told the board.

“Efficient facilities and good health, both mental and physical, makes smart business sense,” she said.

City Councilor Clifton Below echoed some of those concerns, saying it’s unlikely that there’s enough money to pay for energy improvements to the building, such as additional insulation.

The building is mostly brick, he said, and a foot of masonry has been shown to provide as little insulation as a two panes of glass. Below then asked if councilors would be open to spending more money throughout the year, if the opportunity arises.

“This is one of the most valuable assets to the city that the public enjoys and engages in,” he said, adding that renovation provides the ability to lead on sustainability.

The council also chose to cut $2.2 million from construction costs at the Hillcrest Acres neighborhood. Officials decided earlier this year to forgo installing sewer there, but plan to repair its water lines and rebuild roads.

A $1 million airport safety project was cut, as well, along with plans to perform a West Lebanon visioning study. The Council instead allocated $10,000 for a community charette or some other form of engagement leading up to a full study.

Infrastructure projects that will go through fully funded include $3.7 million in improvements at the water treatment facility and $4.3 million for construction on Mechanic and Mascoma streets.

The city budget includes an additional $3.8 million for the combined water sewer overflow, or CSO projects, as well. The $75 million effort aims to separate sewer and stormwater in 15 miles of Lebanon’s sewer system.

Also approved were several staffing changes, including the funding of a full-time cemetery sextant, a part-time airport employee and more hours for human services and fire department assistants.

The budget includes a 2.6 percent increase for the city’s non-affiliated staff, and the City Council on Wednesday approved four contracts that are expected to cost an additional $220,270 next year.

Tim Camerato can be reached at tcamerato@vnews.com or 603-727-3223.