Kearney holds public hearings on 2025–26 budget and property-tax levy; council closes hearings by unanimous vote

Kearney City staff presented the proposed fiscal 2025–26 budget at a public hearing on Sept. 9, outlining a roughly $127 million spending plan that increases total expenditures by about $9 million (6.9%) and includes a planned bond issue to fund Fire Station No. 3.

The presentation, delivered by Kayla James, noted that the general fund expenditures are budgeted to rise about $2.8 million (7%), driven largely by a 3% pay plan adjustment, statutory increases in police and fire retirement costs, full-year Sportsplex salaries and higher health and dental premiums. "We're here today, of course, to review the proposed budget for 2025–26," James said, adding the staff would explain significant variances and gather feedback.

Why it matters: the budget funds routine operations, planned capital projects and debt service, and sets the tax request that affects property owners. City leaders said the package aims to fund a new fire station and other long-term projects while keeping the general fund balanced.

Key capital projects and funding - Fire Station No. 3: James said the city plans to spend about $12,350,000 next year for Fire Station No. 3 and a fire truck. The city intends to issue approximately $14,800,000 in public-safety bonds to cover the station, the truck, and related costs. - Airport apron reconstruction: a total $8.7 million project with roughly $4.0 million expected to be spent in fiscal 2026; most costs are expected to be reimbursed (about 95%) from federal and other grant sources. - Box Butte business development sewer work: total project cost was reported at $3,700,000, including a $2,500,000 economic development grant, a local match of $508,000 from two property owners (Curtis Spetz and Cody Fries), and $654,000 from the city’s sewer fund; James said the city pays expenses up front and will seek reimbursement. - Other items called out: Avenue A reconstruction ($1.6 million), new landfill cell ($1.5 million), lead service line replacement (total $4.4 million, with an $1.1 million 0% SRF loan and $2.9 million grant), Centennial Park playground ($400,000 donation) and Highway 30 lighting ($300,000).

Spending, staffing and benefits James said personal services in the general fund rose about $2 million (9%) reflecting the pay-plan adjustment, merit increases and higher employer retirement costs. The city budgeted a 3% pay-plan increase for governmental funds (about $537,398) and for proprietary funds (about $221,000). The head count was reported as 363 employees last year falling to 358 for FY26 (net loss of five employees, one full-time and four part-time), with one full-time fire engineer added.

James also highlighted a 20% increase in employee and employer health and dental premiums and told the council staff are working with benefits consultants to explore alternative plans such as high-deductible options to help control premiums.

Revenues, fees and rates The presentation showed total budgeted revenues up about $22.4 million (21%), driven largely by planned bond proceeds ($14.8 million), growth in tax revenues ($3.2 million), and a $5.6 million increase in charges for services. Sales-tax revenue is budgeted at roughly $19.4 million.

Specific rate and fee changes noted: tipping fees at the landfill (uncompacted waste to $42.25/ton, compacted to $39.20/ton over phased increases), a continued multi-year sanitary sewer rate increase (7.5% in year four of a five-year plan), and an increase in the residential water monthly base rate from $10.34 to $12.75 to stabilize revenues.

Fund balance, debt and policy notes City staff highlighted a financial policy target to maintain an operating fund balance of at least 25% of operating expenses; staff reported most funds meet the policy for FY26. James said the general fund budget is balanced for FY26 and noted annual bond principal and interest payments total roughly $10 million per year; net bond balances are projected to increase reflecting the planned issuance for the fire station.

Public process and next steps The council held the required public hearings for the proposed budget and for setting the 2025 property-tax levy at an amount different from the preliminary levy published by the Buffalo County Clerk. There were no public speakers at the hearing.

Formal actions taken at the meeting included council motions to close both public hearings and to adjourn. Roll calls recorded unanimous "aye" votes on each procedural motion. The council will consider final adoption items (annual appropriation, personnel ordinance, fee schedule and a resolution setting the final property-tax request) at upcoming meetings, including a Sept. 23 informational "pink postcard" meeting and a Sept. 9 special meeting to set the final property tax request.

Ending: City staff encouraged public input at the upcoming informational meeting and said department heads had trimmed nonessential program growth to fund the prioritized capital and personnel needs.