08/16/2016 MinutesCITY OF GRAND ISLAND, NEBRASKA
MINUTES OF CITY COUNCIL STUDY SESSION
August 16, 2016
Pursuant to due call and notice thereof, a Study Session of the City Council of the City of Grand
Island, Nebraska was conducted in the Council Chambers of City Hall, 100 East First Street, on
August 16, 2016. Notice of the meeting was given in the Grand Island Independent on August
10, 2016.
Mayor Jeremy L. Jensen called the meeting to order at 7:00 p.m. The following Councilmembers
were present: Mitch Nickerson, Mark Stelk, Chuck Haase, Julie Hehnke, Linna Dee Donaldson,
Michelle Fitzke, Vaughn Minton, and Mike Paulick. Councilmembers Roger Steele and Jeremy
Jones were absent. The following City Officials were present: City Administrator Marlan
Ferguson, City Clerk RaNae Edwards, Finance Director Renae Griffiths, City Attorney Jerry
Janulewicz, and Public Works Director John Collins.
Mayor Jensen introduced Community Youth Council member Megan Woods and board member
Danna Burchess.
INVOCATION was given by Community Youth Council member Megan Woods followed by
the PLEDGE OF ALLEGIANCE.
SPECIAL ITEMS:
Discussion Concernin� 1/2 Cent Sales Tax Ballot Lan�ge. City Administrator Maxlan
Ferguson reported that Nebraska State Statute 77-27,142 allowed for incorporated municipalities
to impose a sales and use tax of up to 1/2% above the allowed 1 1/2%. In order to increase the
current sales tax rate, 70% of the City Council would have to approve this for a vote at a primary
or general election. The proceeds would have to be used for public infrastructure projects and
would terminate no more than 10 years after its effective date, or if bonds were issued and the
sales tax revenue was used for payment of bonds. An interlocal agreement would have to be
established with a political subdivision within the City/County. It could not be one that was in
existence for 1-year preceding the election. If the vote would fail it could not be voted on again
for at least 23 months.
Mr. Ferguson gave the following brief history of sales tax in Grand Island: November 1989
voters approved a sales and use tax of 1% for property tax relief. In May 2004 voters approved
an additional 1/2% sales and use tax for property tax relief and for capital improvements.
The goal to this tax was to put before the voters at the November 8, 2016 General Election an
additional 1/2% sales tax on all purchases made in Grand Island. The additional 1/2% would
begin in Apri12017.
Presented was the proposed ballot language. The additional revenue would be used to fixnd the
following infrastructure projects:
Page 2, City Council Study Session, August 16, 2016
• Public sidewalk construction, reconstruction and rehabilitation and pedestrian safety
improvement projects
• Downtown parking improvements to serve the needs of business owners and the public
• Flood control and water drainage improvements
• Street and road paving, construction, and improvements
• Railroad-street grade separation projects, including rehabilitation of current underpasses
• Train noise reduction
• Public safety capital equipment purchases
• Improve automobile, freight, bicycle and pedestrian traffic safety
• Protect property values through drainage improvements and railroad noise reduction
• Promote a vibrant and economically thriving downtown business district through
rehabilitation of public parking lots and, if needed, development of new parking capacity
Mr. Ferguson stated this tax would generate approximately $5.5 million per year.
Councilmember Stelk mentioned property tax relief. Mayor Jensen stated that the $1.7 million
per year would help the General Fund. Councilmember Paulick stated this was a fair tax.
Finance Director Renae Griffiths commented on the General Fund projections. Councilmember
Nickerson commented on the aging infrastructure within the city, the need to take care of them
and the importance of passing this 1/2 % tax increase. If a person spent $1,000 on taxable goods
in one month the increase would be $5.00.
Councilmember Haase supported this being voted by the people. He stated property tax relief
was needed. He wanted the Council to commit to using the $1.7 million to reduce property tax.
One way to do that was to reduce staff to right-size the budget. Mayor Jensen complimented
Council and staff on working through these issues. Mr. Ferguson sated if we lowered property
taxes we would have a reduction in state aid. Mayor stated personnel costs were a huge part of
the budget and that we needed to look at sustainable revenue.
Presentation on Proposed Fiscal Year 2016-2017 Communitv Redevelopment Authoritv (CRA)
Bud�et• Regional Planning Director Chad Nabity stated it was a privilege to present the 2016-
2017 Community Redevelopment Authority (CRA) budget. He mentioned the responsibilities of
the CRA were outlined in State Statutes to address certain areas of the city in need of
improvement and development. The CRA had the ability to expend funds to acquire substandard
or blighted areas, make public improvements, and assist with development and redevelopment
projects in specified areas.
There were currently 18 designated Blighted and Substandard Areas within the Grand Island
City Limits. The City of Grand Island had the authority to designate up to 35% of the community
as blighted and substandard. Presently 19.84% of the City had been designated blighted and
substandard.
The CRA was requesting property tax revenues of $746,691 including $198,050 for Lincoln Pool
Construction and Bonds and $548,645 for all other CRA programs. The CRA was requesting the
same levy that was approved last year.
Page 3, City Council Study Session, August 16, 2016
Reviewed were the CRA budget and projects. Councilmember Haase asked if there was any
room to reduce the tax asking amount for CRA. Mr. Nabity stated the Council could make that
decision. Comments were made regarding the amount of money not being used. Mr. Nabity
stated not all projects would be completed this year but we had to budget for them.
ADJOURNMENT: The meeting was adjourned at 8:12 p.m.
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RaNae Edwards
City Clerk