Seward Council reviews proposed 2025–26 budget; schedules public hearings and flags potential pool replacement

City staff presented the proposed fiscal year 2025–26 budget to the Seward City Council on Oct. 25, outlining broad spending priorities, revenue assumptions and a schedule for public review and adoption.

The presentation, led by a city staff member identified as Greg, said the proposed budget includes a 3% cost-of-living adjustment for wages, a 5.2% increase in health‑insurance costs shared by employees and the employer, and a proposed 5.5% increase in property‑tax revenue request compared with the current year. Greg said the city plans a public hearing on the proposed budget on the 16th, a "pink postcard" community meeting on the 22nd, a special council meeting on the 23rd to consider adoption or amendments, and possibly a follow-up meeting on the 30th.

Why it matters: The budget defines the city’s spending on services and capital projects for the coming year, shapes tax and rate decisions and sets priorities for projects such as the wellness center, pool planning and street work.

Key revenue and tax points Greg told the council the state-provided inflation factor for municipal property‑tax limits is 5.17% and the county assessor provided a new-growth factor of 2.96%, which together produce an 8.13% statutory ceiling for additional property‑tax revenue. "We are asking for 5.5 based on our quantification and leaving the levy alone," Greg said. The presentation included proposed property‑tax collections of about $2,046,384 for 2024–25 and $2,162,126 for 2025–26, an increase the presentation identified as roughly $115,742.

Staff emphasized a conservative sales‑tax forecast and noted that the airport levy accounts for roughly 11.7% of the total city levy in prior years, though exact ratios vary by year.

Personnel, benefits and insurance Greg noted a proposed 3% COLA and said the city is passing a 5.2% health‑insurance increase evenly between employees and the employer. Property, liability and auto insurance line items showed larger increases in certain categories (for example, inland marine and commercial property); overall insurance costs were described as up roughly 10%, with some offset from a declining workers’‑compensation modifier.

Operations and capital projects highlighted - Wellness center: Staff reported the wellness center project is nearly closed out and that construction savings came in roughly $2 million below prior estimates. Council members discussed using remaining wellness‑center funds to plan or site a replacement pool at the wellness center; staff said planning now could reduce the risk of losing swim seasons if the existing pool fails. Greg said the pool vessel (built about 2004) is approaching the 20–30 year design life and warned of the possibility of a structural or mechanical failure that could close the pool for a season or longer.

- Pool planning options: Staff proposed three paths: do nothing now; fund planning/engineering so a replacement could move quickly if needed; or place a larger replacement decision before voters. Greg said, "we'd rather have a plan in place," and noted that if funds are not used for a pool plan, they would not affect the general fund because they would come from wellness‑center savings.

- Information technology: The budget includes replacements and upgrades tied to end of Windows 10 support and the need for greater RAM for Windows 11, migration to cloud‑hosted systems, and conversion from radio links to individual fiber connections at city buildings.

- Cemetery: The cemetery board has proposed installing a domestic water line to replace an aging well; staff noted the estimate in the packet was approximately $20,000 for water‑line installation to ensure domestic service to the facility.

- Electric and public works: The electric business account includes a planned 3% overall rate increase tied to a recent NMPP rate study and higher distribution/substation costs. Staff presented a request to add an additional lineman so the utility can field two full three‑person crews for conversions, storm response and buried‑utility work.

Process and public engagement Greg reiterated that the packet materials were provided to the city’s auditor, that the final budget memo will be updated after adoption, and that council members and the public will have multiple opportunities to comment. Council members reminded residents that the "pink postcard" meeting is an informational forum and that the formal budget hearings and council meetings are the venues for direct input or changes.

Votes and immediate actions Earlier in the meeting the council approved the consent agenda. A motion was made and seconded; the roll call vote was recorded verbally with the transcript listing several members as voting in favor. The council did not take a final vote on the proposed budget at this meeting; staff scheduled the public hearing and subsequent adoption meetings.

Next steps Staff will present the proposed budget at the public hearing on the 16th, attend the community "pink postcard" meeting on the 22nd, and return to the council on the 23rd for possible adoption or amendment. Additional budget meetings are possible before the final adoption deadline.