Grand Island presents $57.1 million FY2025–26 budget; city, CRA and parking mill levies held steady

City Administrator Patrick Brown presented the proposed fiscal year 2025–26 budget to the Grand Island City Council during a public hearing Sept. 8, saying the proposal keeps the cityproperty tax request the same as prior years while reflecting higher property valuations and a large capital program.

"The budget document, I think, is one of the most important documents that the city has," Brown said as he summarized revenue projections, personnel changes and planned capital spending.

Brown told the council that total disbursements and transfers in the proposed FY26 budget increase about 8.3% compared with the adopted FY25 budget, driven primarily by use of general fund excess cash reserves and bond proceeds earmarked for several parks projects and anticipated spending in the Good Life District. He said all-funds revenue projections are conservative, rising roughly 1.2% compared with the prior year.

Property valuations in the city increased about $378 million (about 8.1%) compared with the prior year, Brown said. He noted that if the city applied the updated levy to the new valuation the citywould collect about $14 million in property tax revenue; instead, the city is maintaining the same tax ask it has used for roughly the last seven years, which is $13 million. Because valuations rose while the tax ask stayed the same, the proposed city mill levy would decline to 0.241484; the Community Redevelopment Authority (CRA) mill levy would drop from about 0.017 to 0.016. Combined city and CRA mill rates would move from roughly 0.278135 to 0.25729 under the proposal.

Sales tax revenue is projected at $29.7 million for FY26, a roughly 2% increase over FY25, Brown said. He also described a capital program of about $82 million for FY26, broken out by department in the budget packet, and highlighted specific projects called out in the proposal including Stolly Park trail improvements, Bridal Park ball field upgrades and Island Oasis renovations.

On staffing, the budget includes new positions and reclassifications. Brown listed a new police officer, 2.5 community service officer equivalents (CSOs) primarily for animal control, a parks maintenance worker focused on irrigation, and a part-time library assistant (described as five part-time positions at 16 hours per week). He said the incremental annual cost to the general fund from new and reclassified FTEs is about $595,000.

Brown presented a five-year projection that assumes modest revenue growth and higher personnel costs; the projection shows a risk of deficits by 2029 if current assumptions hold. He said the city is keeping conservative vacancy savings assumptions and is monitoring sales tax receipts closely; the September sales tax number (for July collections) was expected within a week of the meeting.

Separate public hearings were held on the city and CRA tax request and on Parking District No. 2's ramp tax. For the city and CRA tax request, Brown reiterated the mill-levy numbers presented during the budget overview and said the total combined mill levy request (city plus CRA) would move to 0.25729 under the proposal.

For Parking District No. 2, Brown said the district is asking for the same tax request as the prior year, an amount he stated as $9,090, which would change that district's mill levy from 0.01047 to 0.009711.

Each of the three public hearings (the annual single-city budget and appropriations bill; the general property and CRA tax request; and the Parking District No. 2 ramp tax request) was opened and then closed with no members of the public signing up to speak. No votes, motions or final actions on the budget or tax requests were recorded in the transcript excerpt provided; the items remained as public hearings for council consideration.

City officials present at the meeting included Mayor Steele, Council President Sheard and a majority of council members; Council member Mendoza was absent. City staff listed on the record included City Clerk Jill Grenier, Assistant City Administrator and CFO Carrie Fisk, City Attorney Keith Kurtz, Public Works Director Keith Kurtz (as listed), and staff member Laura McAloon. Patrick Brown led the budget presentation and question-and-answer in the transcript excerpt.

The council completed its agenda and adjourned. The budget packet and the proposed FY26 capital improvement program were referenced repeatedly and are available on the city's website, as Brown directed council members to the online executive overview for more detail.