08/12/2025 Minutes OFFICAL PROCEEDINGS
MINUTES OF CITY COUNCIL STUDY SESSION (BUDGET)
August 12, 2025
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 12, 2025. Notice of the meeting was given in The Grand Island Independent
on August 6, 2025. Mayor Roger G. Steele called the meeting to order at 6:00 PM. The
following City Council members were present: Jack Sheard, Mark Stelk, Jason Conley, Mitchell
Nickerson, Doug Brown, Chuck Haase, Maggie Mendoza (arrived at 6:49 p.m.), Ryan O'Neill,
Mike Paulick and Doug Lanfear. The following City Officials were present: City Administrator
McAloon, City Clerk Jill Granere, Assistant City Administrator/Finance Director Patrick Brown,
City Attorney Kari Fisk and Public Works Director Keith Kurz.
ITEMS FOR DISCUSSION
5.a) FY2026 Public Works Engineering, Administration, and MPO Budget Proposal
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Engineering & Administration PP
MPO PP
Public Works Director Keith Kurz reported personnel services for Engineering and
Administration would increase by 4.38% ($60,860) with Engineering increasing by 5.49%
($53,508) and Administration increasing by 1.77% ($7,352). Operating Expenses would decrease
by 6.83%, engineering decreasing by 18.98% ($18,950) attributed to cancellation of OpenGov in
an amount of $49,439 and administration increasing by 0.86% ($1,350 due to moving PW
Director Vehicle maintenance to Engineering). FY26 overall funding for engineering totaling at
$1,127,838 and administration totaling $579,437.
Public Works Director Keith Kurz reported that MPO is required in Urbanized Areas with 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 FY2026 was $314,349 and the City's share was
$62,870.
5.b) FY2026 Street Division Budget Proposal
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Streets PP
Street Superintendent Shannon Callahan reported the Street Division Office and Fleet Services at
1111 W. North Front was leased from the Union Pacific Railroad signed a new lease on
November 1, 2023 in the amount of$14,300 which was an increase of 3% annually. Callahan
stated a larger facility will be needed in the future.
Callahan mentioned programs by Spring, Summer, Fall and Winter.
Page 2 of 7,City Council Study Session,August 12,2025
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
• Guardrail Repair(as-needed)
Callahan mentioned Storm Sewer manholes, inlets and pipes and cleaning program.
Callahan reported Proposed FY 2025-2026 Budget as follows:
• Personnel - $2,832,130 (increase of 2.37%)
• Operating - $3,421,650 (increase of 17.11%)
• Non-Capital Projects - $1,790,000 (decrease of 2.19%)
• Capital Equipment- $1,186,364 ($166,730 is carried over from last FY24 to FY25)
Mentioned was the proposed increase in operating budget ($3,421,650 increase of 17.11) due to
vendor cost increase of $200,000, equipment repair and maintenance increase of $94,645.
Insurance Premiums increase of $61,024, Traffic Signal Controller Replacement increase of
$30,000, Downtown on-street striping increase of$15,000 and Tree removal in Highway Right-
of-Ways increase by $15,000.
Non-Capital Projects mentioned were: ($1,7900,000 decrease of 2.19%)
• Asphalt Resurfacing Project
• Contracted Concrete Repair
• Traffic Signal Infrastructure and Equipment Upgrades
Capital Equipment Requested for this FY26 are as follows:
• HVAC Unit Replacement(North Front Facility) ($30,000)
• 10 CY Dump Truck(Carryover from FY2025 $166,730)
FY2026 Equipment Requests ($989,634)
• Asphalt Reclaiming/Trenching Machine down payment
• Skid Steer Buyback
• Sewer Vac/Flush Truck(1 of 5 payment))
• Snow Heaver Attachment/Street Sweeper(payment 5 of 5)
• Shredder/Mower Deck attachment for Tractor
• Salt Spreader Truck
• 10 CY Dump Truck
Page 3 of 7,City Council Study Session,August 12,2025
• Attachments/Tools>$10,000
• Street Sweeper
• 3/4 Ton Pickup with Utility Body (Traffic Signal Work Truck)
• Mower, Remote-Controlled
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
• 1/2 Cent Sales Tax
• Car Rental Tax
5.c) FY2026 Fleet Division Budget Proposal
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Fleet PP
Street Superintendent Shannon Callahan reported the Fleet Services Office and Shop Garage at
1111 W. North Front. The proposed FY2025-2026 Budget were personnel expenses increase of
1.91% ($476,715), operating expenses increase of 5.79% ($1,312,334), Capital Outlay - $15,000.
Revenue increase of $1,823,337 (3,39%). 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.
Operating and capital budget increase of $1,312,334 due to parts cost increase and outsourced
repairs. HVAC unit replacement of$15,000.
Mentioned were the following revenues:
• Light Duty Equipment-$126.50
• Heavy Duty Equipment - $155.50
• Parts Procurement and Sales—25% Mark-Up
• Fuel Procurement and Sales
Discussion was held on a fleet manager.
5.d) FY2026 Solid Waste Division Budget Proposal
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Solid Waste PP
Jeff Wattier Solid Waster Superintendent 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 24 years in current area(cells 1, 2, 3 and 4) with construction proposed in FY26 for cell 4.
Page 4 of 7,City Council Study Session,August 12,2025
Mentioned were continued capital replacement of a new compactor.
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. Project is advertised for bids currently.
Mentioned was personnel expense took up 13% of the budget for $1,785,243, operations were
11% for $1,720,550, debt services were 8% for $1,000,000 and capital expenses were 68% for
$9,798,000.
Solid Waste Overview FY24 vs FY25:
• Personnel Services increase of 5.9% ($1,785,243)
• Operating Expenses increase of 15% (1,720,550)
• Debt Services 0% ($1,000,000)
• Capital Expenses increase of 7.8% ($9,798,000)
TOTAL: $14,303,793 (increase of 7.8%)
Mentioned were Capital Expenditures:
• Landfill Cell 4 - $2,600,000
• Transfer Station Loader- $240,000
• Transfer Station Trailer- $133,000
• Begin Transfer Station improvements - $6,500,000
5.e) FY2026 Transit Division Budget Proposal
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Transit PP
Transit Program Manager Charley Falmlen reported FY2024-2025 was to continue Urban only
operations contract with Brown Transit, Inc.
Mentioned were FY2026 Expenses Overview:
• Contract Services - $1,888,768 (increase of 6.5%)
• Administration - $207,660 (decrease of 41.8%)
• Capital Vehicles - $17,000 (decrease of$2,113,428)
Mentioned were FY2026 Revenues Overview:
• Federal Funding - $1,133,657
• State Funding - $459,599 (increase of 4.2%)
• City of Grand Island—Match - $541,000 (decrease of 3.1%)
For a total of$2,134,256
5.f) FY26 Wastewater Division Budget Proposal
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WW PP
Page 5 of 7,City Council Study Session,August 12,2025
Assistant Public Works Director Matt Walker reported Revenue increase of 6% ($16,441,500),
personnel increase of 6.2% ($4,021,257). No new FTE request. Operating Expense increase of
17.4% ($6,800,662).
Mention were FY2024 Capital Projects:
• Flow Improvements—Budget($500,000) Forecasted ($277,733)
• UV System Upgrade—Budget($515,000) Forecasted($40,000)
• WWTP Master Plan Update—Budget($315,000) Forecasted ($270,000)
• Belt Filter Press Controls Rebuild—Budget ($65,000)Forecasted($67,000)
• Oil & Grease Extractor—Budget($60,000) Forecasted($64,439)
• Raw Sewage Pump—Budget($125,000) Forecasted ($101,520)
• WWTP Fiber Network—Budget($1,060,900) Forecasted ($100,000)
• Collections Building—Budget($300,000) Forecasted($0)
• Flow Monitoring—Budget($0) Forecasted ($125,641)
• S Locust Street Repairs —Budget ($500,000) Forecasted($39,830)
• MH Rehab—2023-S-10—Budget ($0) Forecasted ($18,154)
• MH Rehab—2025-S-2—Budget($38,192) Forecasted($25,000)
• Plum Street Repair—Budget($0) Forecasted ($33,000)
• Sewer Rehab—2024-S-3 —Budget ($1,163,065) Forecasted ($55,000)
• Lift Station No. 1 Mechanical Replacement—Budget ($0) Forecasted($100,000)
• 13th Street Extension—Budget($0) Forecasted($97,000)
• Sanitary Sewer District Unknown—Budget($1,000,000) Forecasted($0)
For a Total 2025 Budget of$5,642,157 and forecasted amount of$1,414,316.
Mentioned were proposed Capital Projects
• Aeration Basin#3 Diffuser Rehab - $25,000
• Aeration Blowers Replacement- $250,000/$1,750,000
• Collections Group Building- $3,000,000
• UV System Replacement - $1,300,000/$2,975,000
• WWTP Fiber Network - $50,000
• WWTP Master Plan Update - $27,607/$297,607
• 13th Street Sanitary Sewer Extension- $2,303,000/$2,400,000
• Lift Station#1 Repairs - $100,000/$200,000
• Manhole Rehabilitatin - $437,915/$462,915
• Open Cut Sanitary Sewer Repairs - $546,500
• S. Locust Street Sanitary Sewer Repairs - $377,028/$416,858
• Sanitary Sewer Rehabilitation—Group 2 - $1,387,200/$1,442,200
• Sanitary Sewer District—Roush & Coble Sub - $350,000
• Sanitary Sewer District—Generic - $1,000,000
For a total of$11,154,250.
Capital Equipment mentioned was new vehicles of a flusher truck for $250,000, Sewer Camera
& Transport for $65,000, Lift Station Truck for$65,000 and an operations pickup for $50,000.
Page 6 of 7,City Council Study Session,August 12,2025
Walker reported the following 2026 Funding Sources:
• Projected 2025 Ending Cash Balance - $9,433,115
• Revenue - $16,441,500
• Restricted Investments/Cash- $7,153,104
Total Revenue of$35,330,719
• Personnel Expenses - $4,021,257
• Operating Costs - $6,800,662
• Loan/Bond Payments - $4,187,866
• Capital Expenses - $11,574,250
Total Expenditures of$26,584,035 with ending cash balance of$8,746,684.
Walker explained future project expenses.
5.g) FY2026 Electric - Capital Improvements & Equipment Budget Proposal
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Presentation
Utilities Director Ryan Schmitz reported that the Electric personnel expenses would increase
6.1%, utility personnel costs account for 21.7% of the budget. Currently 2 vacant FTE's to be
repurposed.
The Administration and operating expenses would decrease by 0.9%:
• Administrative Cost increase of 10.6% (6.3% of requested budget)
• Cost of Power decrease of 2.0% (70% of requested budget)
• Distribution O&M increase of 0.1% (7.5% of requested budget)
Schmitz mentioned the following Capital Projects - Transmission:
• Distribution Breakers - $120,000
• Motor Operated Disconnects - $50,000
• EZ Packs - $50,000
• Transmission Relaying Upgrades - $100,000
Capital Projects -Distribution:
• New/Replaced Infrastructure($2,800,000)
• Underground Materials—New/Replaced Infrastructure - $3,250,000,
Capital Projects—Production:
• PGS Baghouse Bags - $1,220,000
• PGS Turbine Overhaul Parts - $600,000
• PGS Data Controllers - $26,200
• Burdick Turbine Overhaul Parts - $700,000
• Burdick Data Controllers - $42,600
Mentioned were Capital Equipment for $1,040,545
• Overhead Bucket Truck Chassis - $120,000
• Underground Hook&Rack- $86,000
Page 7 of 7,City Council Study Session,August 12,2025
• Safety Training Trailer- $25,000
• Line Shop Generator - $160,000
• Rubber Goods Trailer- $20,000
• PGS Operator Vehicle - $55,000
• Utility Truck- $350,327 ($350,327 (Approved in FY22-23, delivered in FY25-26)
• Utility Truck- $224,218 (Approved in FY23/24, delivered in FY25-26)
5.h) FY2026 Water- Capital Improvements & Equipment Budget Proposal
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Presentation
Utilities Director Ryan Schmitz reported the personnel services would increase 4.0%. Utility
Personnel Costs account for 17.0% of Budget. No new FTE's requested. Admin and operating
expense would increase by 1.5%.
Mentioned were the following Capital Projects:
• Distribution Improvement Projects: Locust (Fonner to Koenig - $1,000,000), unplanned
water main developments of$200,000 and Stolley Park Hydrants of$40,000. Wellfield
Improvements of $20,000, Pumping Station Improvements (VFD Burdick of $100,000
and Olson Tower Fence of $30,000), Inventory for Lead Service Line Replacements of
$150,000.
Mentioned were Capital Equipment of a backhoe - $165,000 and a Service Truck- $70,000.
Mr. Schmitz gave an update on the Lead Service Line Replacement.
5.i) FY2025/2026 Fee Schedule
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FY2025-26 Fee Schedule
Assistant Finance Director/CFO presented the proposed FY2025/2026 Fee Schedule.
ADJOURN
The meeting was adjourned at 8:51 p.m.
iJ 1 Granere
City Clerk