8/6/2024 Minutes OFFICAL PROCEEDINGS
MINUTES OF CITY COUNCIL STUDY SESSION (BUDGET)
August 6, 2024
CALL TO ORDER
Pursuant to due call and notice thereof, a Study Session (Budget) 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 6, 2024. Notice of the meeting was given in The Grand Island Independent on
July 31, 2024. Mayor Roger G. Steele called the meeting to order at 6:00 PM. The following
City Council members were present: Maggie Mendoza, Bethany Guzinski, Chuck Haase, Jack
Sheard, Mike Paulick, Michelle Fitzke, Mark Stelk, Mitchell Nickerson and Jason Conley. Doug
Lanfear was absent. The following City Officials were present: City Administrator Laura
McAloon, City Clerk Jill Granere, Assistant City Administrator/Finance Director Patrick Brown,
Finance Director Matthew Gleason, City Attorney Kari Fisk and Public Works Director Keith
Kurz.
ITEMS FOR DISCUSSION
4.a) FY2025 Public Works Engineering, Administration, and MPO Budget Proposal
Public Works Director Keith Kurz reported personnel services for Engineering and
Administration would increase by 2.51% ($34,531) with Engineering increasing by 4.77%
($44,214) and Administration decreasing by 2.36% ($9,683). Operating Expenses would
decrease by 2.43%, engineering decreasing by 5.11% ($6,400) attributed to copier fees and
office supplies and administration decreasing by 0.29% ($450) due to reduction in telephone
expense. FY25 overall funding for engineering totaling at $1,089,760 and administration totaling
at $557,440. Mentioned was the Street/Fleet Facility Land Acquisition in the amount of
$1,500,000.
Allan Zafft, MPO Manager reported that MPO is required in Urbanized Areas over 50,000 in
population which is regulated by Federal Law. It was federally funded by USDOT at 80%. Mr.
Zafft reported that the total Budget for FY2025 was $451,674 and the City's share was
$90,334.80.
4.b) FY2025 Transit Division Budget Proposal
Transit Program Manager Charley Falmlen reported FY2023-2024 accomplishments included a
publish of Request for Proposals for Transit Provider and was awarded to Brown Transit, Inc., a
completion of first onsite monitoring of new public transit contractor and order of first non-ADA
vehicles for public transit fleet.
Mentioned were FY2024/FY2025 Expenses Overview:
• Contract Services - $1,772,000
• Administration&Planning Services - $206,471
• Capital Vehicles - $1,145,000
For a total of$3,123,471.
Mentioned were FY2024/FY2025 Revenues Overview:
• Federal Funding - $1,958,600
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• State Funding - $441,000
• City of Grand Island—Beginning Cash - $198,372
• City of Grand Island—FY24/25 Match - $558,200
For a total of$3,156,172
Mentioned was continuing to purchase new vehicles as there is significant delays. Continue
operations with transit provider Brown Transit.
4.c) FY2025 Street Division Budget Proposal
Street Superintendent Shannon Callahan reported the Street Division Office and Fleet Services at
1111 W. North Front was leased from the Union Pacific Railroad and the 22 year lease expires in
2023. New lease begins November 1, 2023 in the amount of$14,300 which was an increase of
3%. Callahan stated a larger facility will be needed in the future.
Callahan mentioned programs by Spring, Summer, Fall and Winter.
Mentioned were continuous (non-seasonal) functions as follows:
• Sweeping Call-Outs (spills and accidents)
• Traffic Signal Call-Outs
• Adopt-A-Road Bag Collection
• Downtown & Special Event Street Sweeping
• Special Event Traffic Control
• Rezone & Conditional Use Sign Postings
• Underground Utility Locates (storm sewer& signals)
• Sign and Guardrail Repairs
• Curb Milling
• Alley Grading
• New Street Name Signs
Callahan mentioned Storm Sewer manholes, inlets and pipes and cleaning program.
Mentioned were pavement conditions and ratings.
Callahan reported Proposed FY 2024 Budget as follows:
• Personnel - $2,766,856 (decrease of 2.04%)
• Operating - $2,921,805 (increase of 4.08%)
• Non-Capital Projects - $1,830,080 (decrease of 0.67%)
• Capital Equipment - $1,062,401 ($242,313 is carried over from last FY24 to FY25, new
request for FY25 was $820,088))
Mentioned was the proposed increase in operating budget due to material costs and inflation for
concrete, asphalt, lumber, signs, road de-icing chemicals (salt), roadway striping pain and fuel.
Non-Capital Projects mentioned were:
• Asphalt Resurfacing Project
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• Contracted Concrete Repair
• Traffic Signal Infrastructure and Equipment Upgrades
Callahan reported funds carried from previous FY24 were as follows:
• 10 CY Dump Truck
• Deck Over Tilt Top Trailer
• Asphalt Reclaiming/Trenching Machine down payment
Requested for this FY25 are as follows:
• Facility Security—Electronic Gate and Exterior Cameras
• Skid Steer Buyback
• Sewer Vac/Flush Truck(down payment)
• Snow Heaver Attachment/Street Sweeper(payment 4 of 5)
• Shredder/Mower Deck attachment for Tractor
• 10 CY Dump Truck
• Backhoe
• Attachments/Tools >$10,000
• 3-Pt Sprayer Attachment for Noxious Weed Spraying
• '/2 Ton Pickup
• 1-Ton Pickup
Mentioned were sources obligated for roadway maintenance and construction as follows: (210
and 410 Funds)
• Highway Allocation"Gas Tax" (required 25% local match)
• Motor Vehicle, Fees, Property Tax & Local Sales Tax
• NDOT Maintenance Agreement
• Street Superintendent Incentive Payment
• Federal Fund Purchase Program, Surface Transportation& Bridge
• '/2 Cent Sales Tax
• Car Rental Tax
4.d) FY2025 Fleet Division Budget Proposal
Street Superintendent Shannon Callahan reported the Fleet Services Office and Shop Garage at
1111 W. North Front would require larger bays in the future. The proposed FY2024 Budget were
personnel expenses decrease of 0.06% ($467,768), operating expenses increase of 7.21%
($1,240,500). No additional staffing would be requested. The operating and capital budget was
proposed to increase by 7.21 due to safety coordinator cost share, tire balancer and parts prices.
No capital purchases were planned.
Mentioned were the following revenues:
• Light Duty Equipment -$121.50
• Heavy Duty Equipment- $149.50
• Parts Procurement and Sales—25% Mark-Up
• Fuel Procurement and Sales
Page 4 of 7,City Council Study Session,August 6,2024
4.e) FY2025 Solid Waste Division Budget Proposal
Public Works Director Keith Kurz reported the enterprise fund receives no funding from the
General Fund. All revenues generated from tipping fees, they are one of the few divisions with
competition and they serve residents and non-residents. Mentioned was the landfill site life of 17
years in current area (cells 1, 2 and 3) and approximately 25 years left in total Phase I area (cells
1, 2, 3 and 4). Working through Cell 4 engineering construction budgeted for FY2025. This
would allow them to eliminate the need for the current storm water pumps at the landfill.
Mentioned were continued capital replacement schedule at the transfer station of a new truck-
tractor, new loader and a new transfer trailer.
Mentioned was the Transfer Station facility improvement to modify operations and facility so it
could better handle current and future traffic and tonnage. This would benefit customers and staff
in lowering time at the facility. Plans are completed and awaiting NDEE permit approval. Project
will be a bid out following NDEE approval.
Mentioned was personnel expense took up 13% of the budget for $1,685,730, operations were
11% for $1,495,150, debt services were 8% for $1,000,000 and capital expenses were 68% for
$9,085,000.
Solid Waste Overview FY24 vs FY25:
• Revenue increase of 25% ($2,452,540)
• Personnel Services increase of 13% ($197,998)
• Operating Expenses increase of 4% (57,100)
• Capital Expenses increase of 34% ($2,300,000)—Cell 4 Construction
Mentioned were Capital Expenditures:
• Landfill Cell 4 - $2,000,000
• Landfill Compactor- $875,000
• Transfer Station UTV - $35,000
• Begin Transfer Station improvements - $6,000,000
Mentioned was an updated Cost of Service Study, which recommended a 4.2% rate increase
through FY28.
4.f) FY2025 Wastewater Division Budget Proposal
Assistant Public Works Director Matt Walker reported Revenue increase of 6.5% ($1,015,500),
personnel decrease of 4%. No new FTE request. Operating Expense decrease of 2.5%
($252,250).
Mention were FY2024 Capital Projects:
• Flow Improvements —Budget($2,385,000) Forecasted($2,500,000)
• UV System Upgrade—Budget ($100,212) Forecasted($93,000)
• Collection Building—Budget ($0) Forecasted ($2,800)
• Central NE Regional Airport Sanitary Sewer Rehab—Budget ($0) Forecasted ($19,900)
• Relocate Lift Station No. 17—Budget ($544,000) Forecasted($775,000)
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• Lift Station No. 28 Equalization Tanks —Budget($0) Forecasted ($136,011)
• 2022 Sanitary Sewer Rehab -Group 2 Engineering—Budget($0) Forecasted ($437,187)
• Veterans Legacy—Budget($625,000) Forecasted ($0)
• Flow Monitoring—Budget($94,719) Forecasted($94,719)
• Sanitary Sewer Rehab Group 2 Engineering—Budget ($89,919) Forecasted ($89,919)
• Manhole Lining & Open Cut Replacement—Budget($515,000) Forecasted($415,000)
• Sanitary Sewer District—Budget($200,000)
Mentioned were a Collections System Office and Equipment Storage Facility. $300,000 in FY25
to buy land for new building; or purchase an existing building; or contract engineering design
services for building at WWTP. This would replace the building at 1204 N. Front Street and
ideally have a building centrally located.
Mentioned were proposed Capital Projects
• Collection System Office & Equipment Warm Storage - $300,000
• WWTP Flow Improvements Project - $852,000
• Belt Filter Press Controls Rebuild- $65,000
• Raw Sewage Pump - $125,000
• Oil & Grease Extractor- $60,000
• WWTP Fiber Network Improvements - $1,060,900
• UV System Upgrades (Refit) - $515,000
• WWTP Master Plan Update - $315,000
• Manhole Rehabilitation(Engineering) - $38,192
• Sanitary Sewer Rehab - $1,163,065
• Locust Street Sanitary Sewer Repairs - $500,000
• Sanitary Sewer District - $1,000,000
For a total of$5,994,157.
Capital Equipment mentioned was a dump truck for $200,000 and operations utility vehicle for
$50,000.
Walker reported the following 2025 Funding Sources:
• Projected 2024 Ending Cash Balance - $7,065,461
• Revenue - $16,464,500
• Restricted Investments/Cash- $6,461,929
Total Revenue of$29,991,890
• Personnel Expenses - $3,784,273
• Operating Costs - $5,791,112
• Loan/Bond Payments - $4,184,340
• Capital Expenses - $6,244,157
Total Expenditures of$20,003,882 with ending cash balance of$9,988,009.
Walker explained future project expenses.
4.g) FY2025 Electric - Capital Improvements & Equipment Budget Proposal
Page 6 of 7,City Council Study Session,August 6,2024
Utilities Director Ryan Schmitz reported that the Electric personnel expenses would increase
10%, utility personnel costs account for 16% of the budget. There was no new FTE's being
requested.
The Administration and operating expenses would increase by 1.4%:
• Administrative Cost decrease of 2% (5.4% of requested budget)
• Cost of Power increase of 0.8% (68% of requested budget)
• Distribution O&M increase of 10.7% (7.2% of requested budget)
Schmitz mentioned the following Capital Projects - Transmission:
• Substation Security Upgrades ($110,000)
• Distribution Breakers - $120,000
• Transmission Relaying &Meter Upgrades - $120,000
• Transmission Line Improvements: 6 poles - $50,000
Capital Projects -Distribution:
• New/Replaced Infrastructure ($2,780,000)
• Underground Materials —New/Replaced Infrastructure - $3,750,000, outside contractors -
$180,000, 3rd Street Building HVAC - $50,000 and Locator- $11,000
Capital Projects—Production:
• NERC Firewall Protection- $100,000
• Fire Suppression System - $150,000
• Concrete walks around Gas Turbines - $25,000
• Scissor Lift- $40,000
• Solar Farm - $2,802,732 (20% of Total Cost)
Mentioned were Capital Equipment for$1,635,442
• Digger Derrick- $0 ($450,000 delivery in FY25-26)
• PC 3/4 Ton Utility Truck- $70,000
• PGS 3/4 Ton Utility Truck- $80,000
• Safety Coordinator Truck- $29,250 (65/25 share with Public Works)
• Utility Truck- $350,327 (Approved in FY22-23 Budget—Delivery in FY24-25)
• Utility Truck- $134,567 (Approved in FY23-24 Budget—Delivery in FY24-25)
• Utility Truck- $253,035 (Approved in FY23-24 Budget—Delivery in FY24-25)
• Utility Truck- $253,035 (Approved in FY23-24 Budget—Delivery in FY24-25)
• Utility Truck- $494,045 (Approved in FY23-24 Budget—Delivery in FY24-25)
• Utility Truck- $224,218 (Approved in FY23-24 Budget—Delivery in FY24-25)
Mentioned were Reimbursements to General Fund
• Finance—38%
• Information Technology—35%
• Human Recourses —22%
• City Hall Buildings—20%
• Administration— 15%
• Legal— 15%
• Clerk's Office— 15%
Page 7 of 7,City Council Study Session,August 6,2024
Other Contributions to General Fund:
• Payment in Lieu of Tax - %5 of Gross Retail Revenue of$3,653,000
4.h) FY2025 Water - Capital Improvements & Equipment Budget Proposal
Utilities Director Ryan Schmitz reported the personnel services would increase 10%.
Administrative and Operating Expense would increase by 13.3%. Administrative cost increase of
17.9%, cost of pumping and treatment increase of 6.8% and distribution O&M increase of 3.8%.
Mentioned were the following Capital Projects:
• Distribution Improvement Projects: Locust (Fonner to Koenig - $500,000) and unplanned
water main developments of$225,000.
• Building Upgrades: Replace Roof on Water Shop- $200,000 and Seal Bricks on Water
Shop - $120,000.
• Wellfield Improvements: Uranium System Upgrades - $200,000
• Pumping Station Improvements—Elevated Storage Grading - $100,000
• InfoWater Model Updates - $70,000
• Inventory for Lead Service Line Replacements - $150,000
Mentioned were Capital Equipment of a Dump Truck (l0yd) - $130,000 and a Dump Truck -
$80,000.
Mentioned was Reimbursements to General Fund:
• Finance—20%
• Administration— 10%
• Legal— 10%
• Clerk's Office— 10%
• City Hall Buildings—9%
• Information Technology—3%
• Human Resources—2%
• Payment in lieu of Tax—2% of Gross Retail Revenue in the amount of$145,000
• Building Department—Backflow in the amount of$75,000
Mr. Schmitz gave an update on the Lead Service Line Replacement.
ADJOURN
The meeting was adjourned at p.m.
` GrGr�i�
Jill ranere
City Clerk