Finally, after another summer of hellish budget-cutting, the Lincoln City Council got some good news.

The city raked in nearly $343,000 more in 2007-2008 sales tax revenue than it projected, or 0.62 percent ahead of projections.

And the value of property in Lincoln increased more than expected, at 1.8 percent, versus the 1 percent projected in the municipal budget. That brings in another $324,000 in property tax revenue to city coffers.

The city always receives final property valuations not long before it must formally adopt a final budget.

On Monday, the council approved a $135 million budget that is a 2.24 percent increase over current spending, but leaves the city property tax unchanged at 28.8 cents per $100 of property value.

The extra revenue will be used to reduce the amount of money that was expected to be transferred from the city’s Special Assessment Revolving Fund to help balance the budget.

No promise necessary

The City Council did not go along with the mayor’s request that it press the Lancaster County Agricultural Society not to build an arena with more than 2,000 seats before 2012.

The mayor wanted the council to require the Ag Society to make such a promise as part of its request with the council to bring a motel, restaurant and other businesses onto 14 acres near the Lancaster Event Center at 84th Street and Havelock Avenue. The council approved the necessary annexation and zoning changes without the requirement.

The development has been on hold for several years due to worries that the Ag Society’s plans to build an arena might compete with the city’s proposal to build a new arena.

The Ag Society has no immediate plans to build an arena but has talked about building one with 3,500 to 4,000 fixed seats.

Labor agreements

Labor agreements with three city unions were approved by the City Council on Monday.

They agreed to the following one-year contracts:

n  The Lincoln City Employees Association negotiated a 2.75 percent wage increase, effective mid-January. Normally, raises go into effect when the fiscal year begins in September, so the raise amounts to 1.59 percent for the year. The union represents about 650 lower- to mid-level management employees.

n The Public Association of Government Employees will get an across-the-board 1.25 percent raise, plus additional increases for employees whose salaries lagged behind peers in other cities.

n  The Lincoln M Class Employees Association, which represents nearly 100 managers and professionals, negotiated 2.75 percent raises, effective in January — which equates to about a 1.6 percent annual increase since the raises don’t go into effect right away.

On top of the annual cost-of-living salary increases described above, employees who haven’t reached the maximum for their pay range are also eligible to get annual merit, or step, pay increases.

Design standards

The City Council isn’t ready to make a decision on whether the Antelope Valley Project needs design standards to ensure quality tenants move into the corridor slated for revitalization.

The city Urban Development Department has drafted standards regulating things like the type of building materials that could be used, building heights and landscaping requirements. The standards would apply in the area bounded by 17th, 23rd, K and R streets and downtown.

Concerns have been raised, however, that tenants in Antelope Valley wouldn’t be required to provide parking, and it’s possible the council will change that. Councilwoman Robin Eschliman also expressed interest in allowing auto dealers in the area, and Councilman Ken Svoboda said he’s still “bothered” by building material restrictions.

Other council members don’t want to tinker with the legislation, however, because they say it was a compromise after an extensive, two-year process.

Councilman Doug Emery said the council shouldn’t “micromanage from the dais” after those working on the standards “walked away from the table with everybody not getting what they wanted.”

Councilman Jon Camp proposed a two-week delay on voting.

Perot Systems likely to get TIF

The city will likely offer more than $3 million in tax incentives to help Perot Systems consolidate its Lincoln employees into a new office building.

The City Council authorized negotiations to begin on a redevelopment agreement with Perot Systems, after which a tax increment financing district will be created.

The new building in the University of Nebraska Technology Park will enable the company to create about 150 software engineering jobs that pay an average of $50,000.

The information technology company already employs 750 employees in seven sites citywide —Perot’s second largest site in the country, and third largest in the world.

Construction is expected to begin later this year and be completed late next year. The company considered other cities for its expansion, but was enticed to stay in Lincoln with the help of TIF.

Reach Deena Winter at 473-2642 or dwinter@journalstar.com.