Beatrice council reviews FY26–27 biennial budget; staff flags 2027 shortfall

At the Sept. 2025 meeting of the Beatrice City Council, city staff opened a public hearing on the proposed biennial budget for fiscal years 2026–27 and walked council members through operating revenues, personnel costs, and a multiyear capital plan. The hearing was opened for public comment and later closed; council did not adopt the budget at the meeting.

The presentation, led by Hannah (city staff, budget presenter), summarized consolidated fund balances of about $34,000,000 for 2025 and described several revenue and expense shifts through 2027. Hannah said the general fund changes include the end of several grant-funded programs — she named the Safe Streets for All, the Lehi lighting grant, and a tourism grant — and noted that the city anticipates a decrease in intergovernmental revenue as those grants lapse.

Hannah also described programmatic changes: the city plans to formalize an information-technology fund to consolidate IT labor and services now spread across departments; an IT director and three employees will be budgeted inside that fund, with each department paying a share. She said the city proposes modest ambulance rate increases (the last rate change was FY24) and called attention to rising personal-services costs from union wage adjustments, higher health insurance charges for the self-funded EBA plan, and retirement-cost increases "set by state statute." Hannah said, "I will admit '27. I don't like where '27 ends," and said staff will return with options to address the shortfall.

Tobias (city staff) echoed the need for follow-up work on 2027 and longer-term structural questions. He told the council, "Maybe it's okay. If it's an ongoing systemic, operating cost and that's not sustainable long term, we believe it's more of an operational issue at this point," and said staff would come back with potential adjustments.

Key numeric items and projects shown in the materials included: - An annual $100,000 general-fund EMS reserve intended to fund ambulance capital needs. - A five-year demolition allocation for the Dempster site totaling about $1,000,000 ($200,000 per year). - The wastewater treatment plant (WPC) GRIT project with a total project cost of about $5,200,000; staff expect the bulk of related grant proceeds to post in 2026 and noted a $2,000,000 grant placeholder for that phase. - Board of Public Works bond proceeds of roughly $3.5 million in FY25, expected to fund substation and distribution improvements in FY26–27. - Proposed infrastructure-fee increases of $2 for water and $2 for WPC; an electric infrastructure fee was proposed but the per-customer amount was not finalized (staff estimated $2–$3 or a similar amount that would generate roughly $840,000 annually once implemented). Staff also described a possible electric rate increase in 2027 intended to generate a similar annual amount.

Staff cautioned that one large federal transportation award discussed as a placeholder in the budget — identified in the presentation as a "RAISE"/"raise" grant for reconstruction work — may not appear as a direct revenue on the city’s books depending on whether the state or another agency handles pass-through financing. Hannah said the grant line is a placeholder until financing details are resolved.

On capital, staff highlighted several projects budgeted across funds: Homestead Trail (city share estimated at $310,000), playground work at Heritage Heights and Stoddard sites (using RCRP and other grant funds), a proposed pickleball facility with a Land and Water Conservation Fund grant application pending, an ambulance purchase using the EMS reserve and CARES funds, and continued investments at the wastewater treatment plant intended to align with a five-year permit cycle.

Staff proposed a cash-reserve policy expressed as a target range (presented to council as a percent of operating expenditures) and noted that some funds would dip into reserve targets in 2027 under the current plan. Hannah and Tobias recommended additional work on 2027 before final adoption and signaled that council members who missed the meeting were expected to review the recorded presentation and ask staff follow-up questions.

The hearing was opened and closed during the meeting. A motion to close the FY26–27 budget public hearing carried 5–0. No final budget adoption occurred at this meeting; staff stated they will return with follow-up materials and options for council consideration.

Ending: Council members praised the presentation format and long-range capital planning but repeatedly asked staff to return with alternatives to address the downward fund-balance projection in 2027. Staff said they would develop options and further analyses before the council must adopt a final budget.