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08/18/2026 Minutes Study Session Budget OFFICAL PROCEEDINGS MINUTES OF CITY COUNCIL STUDY SESSION (BUDGET) August 18, 2026 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 18, 2026. Notice of the meeting was given in The Grand Island Independent on August 12, 2026. Mayor Roger G. Steele called the meeting to order at 6:00 PM. The following City Council members were present: Jack Sheard, Mark Stelk, Mitch Nickerson, Jason Conley, Doug Brown, Chuck Haase, Maggie Mendoza, Ryan O'Neill and Doug Lanfear. Mike Paulick was absent. The following City Officials were present: City Clerk Jill Granere, City Administrator Patrick Brown, Finance Director Chelsey Steinke, City Attorney Kari Fisk and Public Works Director Keith Kurz. ITEMS FOR DISCUSSION 5.a) FY2027 Parks & Recreation Budget Proposal Cover Page Parks Budget Detail Presentation Parks and Recreation Director Todd McCoy reported they were requesting 2.7 FTE's (2 full-time maintenance workers and 3 seasonal workers) to increase personnel by 5.2%. Operating budget was projected to decrease by 0.7% due to reductions in repair and maintenance. Recently Completed Projects mentioned: • Buechler Park Playground • Grace Abbott Park Pickleball Court Conversation • Cemetery Columbarium • Cemetery & Sucks Lake Park Asphalt • Ryder Park Baseball Field • Stolley Park Train Area • Greenhouse Renovations • George Park Picnic Shelter Capital Projects FY27 mentioned: • Cemetery Roof replacement: $30,000 • Field Lighting updates: $300,000 • Grace Abbott Park Band Stand replacement: $175,000 • Island Oasis Renovation Carryover: $9,200,000 • LE Ray Picnic Shelter roof replacement: $22,000 • Water Systems update: $100,000 • Roads & Parking Upgrades: $200,000 • Picnic Shelter replacement: $75,000 • Pier Lake Improvement Placeholder: $100,000 • Project Contingency: $150,000 Page 2 of 5,City Council Study Session,August 18,2026 • Racquet Center Property improvements: $150,000 • Stolley Train Area Carryover: $1,500,000 • Tennis Court resurfacing: $40,000 • West Connector Trail construction: $300,000 Capital Equipment for consideration: • Parks Pickup with Utility Box: $65,000 • Parks Utility Vehicle with Edger& Leaf Blower: $33,000 • Cemetery: Two Utility Vehicles with Loading Bed: $30,000 • Cemetery: Three 60" Cut Mowers: $42,000 • Recreation: Stolley Train Engine and Cars Refurb: $350,000 5.c) Fee Schedule Cover Page Fee Schedule Mr. Brown gave an overview of the Fee Schedule. 5.b) Budget Overview Cover Page Budget Review City Administrator Patrick Brown reported the City was experiencing slower growth in several major General Fund revenue sources. Mr. Brown stated the result was a widening gap between revenue growth and expenditure growth and this was not a one-year budget issue, it was a structural trend that required long-term response. Mr. Brown reported on the current FY2027 General Fund projection as follows: FY2027 Projection Amount General Fund Revenues $54.09 million Personnel Servies ($44.05 million) Operating Expenses ($10.85 million) Transfers Out (2.89 million) Total Operating Expenses $57.79 million Projected Operating Gap (3.70 million) Mr. Brown reported on the General Fund Projection over the next five years, the 2016 and 2025 General Fund Expenses by department and Fire and Police Salaries. Mr. Brown reported revenue growth had slowed. Earlier projections utilized were 3.0% revenue growth, 3.0% operating expense growth and 5.0%personnel growth. He reported the most recent projection was considerable more conservative at 1.5%revenue growth, 2.0% operating expense growth and 4.0%personnel growth. Mr. Brown mentioned the FY25-26 sales tax information showed approximately 1.8% growth compared to the prior year, however, the results were uneven. Page 3 of 5,City Council Study Session,August 18,2026 Mr. Brown reported the City was not buying the same services at the same price as it did several years ago, labor, materials and supplies, capital and infrastructure have all increased. Mr. Brown reported FY2027 Compensation Increases for bargaining units at 5% and non-union employees at 4%. Personnel was approximately $44.0 million. Mr. Brown reported the fundamental issues as follows: • Revenue Growth: 1.5%-2.5% • Personnel Cost Growth: 4%-5% With Operating Cost Inflation at 2%. Mr. Brown mentioned the City had not increases its property tax ask since 2019. Recommendation was not to increase property tax ask beyond the growth in the City's existing tax base. Instead, recommendations that the City capture approximately 2.5% growth in property tax ask. The important distinction was not recommending a tax-rate increase to generate additional revenue beyond growth in tax base but recommending that the City capture approximately 2.5% growth that had occurred in the property tax base. Mr. Brown stated several reasons why capturing property tax growth as follows: 1. It provides predictable revenue 2. It helps match recurring revenue with recurring expenses 3. It reduces dependence on reserves 4. It preserves financial flexibility 111 Mr. Brown reported if revenues continued to grow more slowly than expenditures, the City would have three choices: 1. Reduce Services including reducing staff, reduce hours of service, delayed maintenance, fewer programs, slower response times and deferred equipment replacement. 2. Increase other Revenues such as fees, charges for services, sales taxes. 3. Use Reserves which would be a short-term solution and was not sustainable. Mr. Brown mentioned the FTE requests which included the following: • Police Lieutenant • Police Officer(2) • Police Office Manager Reclass • Police Administrative Support • Firefighter/EMT (1) • Maintenance Workers—Parks • Move Library Assistant 1 to 11 • Add Library Assistant I (2 part-time) • Legal Intern • FTE Requests in enterprise funds Mr. Brown recommended a pause for a year for any new FTE's and reclassifications while the General Fund had limited capacity to absorb additional recurring personnel costs. Page 4 of 5,City Council Study Session,August 18,2026 Mayor Roger Steele agreed with Mr. Brown's pause for a year on new FTE's and reclassifications. Mr. Brown recommended to City Council as follows: 1. Capture the 2.5% Property Tax Growth 2. Recognize that the General Fund revenue growth is slowing 3. Recognize that personnel and operating costs were increasing faster than recurring revenues 4. Continue to prioritize essential services when considering new FTE requests 5. Continue efforts to identify operational efficiencies and savings 6. Establish a goal of reducing reliance on reserves for recurring operating expenditures 7. Begin planning now for the structural financial pressures facing the General Fun in FY2028 and beyond. 5.d) Review Capital Project& Equipment Requests Cover Page Capital Improvement FY2027 Mr. Brown gave an overview of all departments Capital Projects and Equipment Request which totaled$71,040,669.26. 5.e) Review FTE Requests Cover Page FTE Requests FY2027 Mr. Brown presented the FTE requests which included the following: • Legal Intern • Library Assistant II • Maintenance Worker WWTP • Maintenance Worker Parks (2) • Lead WWWP Operator • Police Lieutenant • Officer Manager reclass to Support Services Administrator • Police Officer(2) • Administrative Assistant—Police • Firefighter/EMT Total personnel cost for all FTE requests totaled $1,333,625.48. Councilmember Nickerson discussed the Bookmobile and not hiring an FTE for the library and how that would be managed without one. Library Director Celine Swan suggested the re- classification would help with that gap. Fire Chief Schmidt reported that he was now requesting just 1 FTE instead of 3 to see how that would change the overtime payout the following year. Page 5 of 5,City Council Study Session,August 18,2026 Human Resource Director Aaron Schmid gave an overview of the Re-Classification on the Support Service Administrator for the Police Department, how the array was done and how the compensation was figured. ADJOURN The meeting was adjourned at 9:14 p.m. Ji Granere City Clerk