Committee approves 2025–26 budget items and opts for 'pink postcard' property-tax notification under LB34 rules

The Columbus City Committee of the Whole on Aug. 5 advanced multiple budget items for fiscal 2025–26 and voted to set a property-tax ask under the notification option commonly called the “pink postcard,” a move staff said protects the city’s revenue base amid state law changes limiting property-tax growth.

Finance Director Heather Lindsley presented the budget documents at a public hearing that included a redline fee schedule, a pay plan with a citywide 2% cost-of-living adjustment, a capital improvement plan (CIP) and a multi-year operating budget. Lindsley said projected sales-tax revenue for the next year is roughly $10.4 million and that the city’s budget assumes a conservative $10.0 million in sales-tax-supported revenue for planning.

After staff discussion and public comment, the committee voted to approve the fee schedule, adopt the pay plan, approve the capital improvement plan and adopt the 2025–26 operating budget as presented. The committee also voted to set a property-tax asking of $7,562,660.83 and to participate in a joint public hearing with the county on Sept. 18, 2025 — the procedural step Lindsley and staff described as the prudent choice under recent property-tax law changes.

Why the property-tax choice mattered

Lindsley explained the decision in the context of two state-level changes. LB34 establishes a new base-year approach and allows tax-ask growth by a locality’s “real growth” plus an inflation factor; the county assessor had set Columbus’s real-growth figure at about 1.91% and the state’s December inflation figure at 5.17%, producing about 7.08% combined allowable growth under LB34. LB644 — the “pink postcard” notification rule — permits a lower, alternative growth path without surprise reductions to the city’s long-term base, but requires mailing notice to taxpayers. Lindsley said accepting the pink-postcard process (which Lindsley characterized as the conservative route) preserves an additional $223,805 in revenue over the alternative option; she warned that declining that revenue this year would make it difficult to recover in future years.

Lindsley framed the choice as a fiscal trade-off: take the LB34/inflation path now and limit future notice obligations, or take the pink-postcard route, publish the required notice and set the city’s 2025–26 base differently. The committee voted to adopt the pink-postcard option and set the joint public hearing for Sept. 18, 2025.

Key budget numbers and constraints

- Finance staff projected about $10.4 million in sales-tax receipts for the coming fiscal year and budgeted conservatively for $10.0 million in revenue. - Lindsley reported refunds under Nebraska’s Advantage Act had already produced about $242,000 in outflows this year and said that uncertainty contributed to conservative budgeting. - The memo presented two property-tax ask options: $7,562,660.83 (pink-postcard route) and $7,338,855.48 (alternative); the difference between them is $223,805. - The city’s operating budget presented at the hearing was roughly $73 million in operating appropriations; capital spending is budgeted separately and varies year to year.

Pay plan and new position

The committee approved a pay plan that includes a 2% cost-of-living increase for full-time employees and describes new positions added in the personnel worksheet. During discussion, Tara (city administrator) explained a proposed Director of General Services position that would sit under the city administrator and have multiple department heads report to it; the position is to be filled through an open application process. A member of the public, Linda Claytor, spoke during the hearing to oppose adding a high-salary administrative post while the committee emphasized budget tightness and reductions elsewhere.

Public comment and next steps

Resident Linda Claytor urged caution on creating the Director of General Services post and noted the city had eliminated lower-paid operational positions while proposing a higher-paid administration role. Lindsley said the city will open the director position to public applications and staff would analyze long-term operating and staffing impacts.

Votes at a glance

- Fee schedule: motion made and passed (mover/second not specified in record). - Pay plan (including 2% COLA and new positions): motion made and passed (mover/second not specified). - Capital improvement plan for FY 2025–26: motion made and passed (mover/second not specified). - Operating budget for FY 2025–26: motion made and passed (mover/second not specified). - Property-tax ask and procedure: motion made and passed to set the “pink postcard” ask of $7,562,660.83 and a joint public hearing on Sept. 18, 2025 (mover/second not specified).

The committee closed the hearing and adjourned; staff will publish the pink-postcard notice required by statute and prepare for the joint public hearing with the county on Sept. 18.