Kearney council accepts annual audit, approves consent items, delays Good Samaritan hearings

Kearney City Council on April 22 accepted the city’s annual financial report, approved a set of consent-agenda items, voted to postpone two public hearings related to the Good Samaritan Village development until May 13, 2025, and approved an open-account claim to UNL Market Place.

The actions were taken after a presentation of the draft audit by Tim Lehi, the CPA presenting on behalf of Burton KTV/Creative Planning. Lehi told the council the auditors issued an unmodified opinion on the financial statements and that ‘‘the financial statements as presented there are materially correct in accordance with standards.’’ The council voted to accept the report at the meeting.

Why it matters: Acceptance of the audit and the associated motions finalize the city’s reviewed financial statements for fiscal reporting and federal compliance and set the next procedural steps for the Good Samaritan Village development. The audit also identified internal-control items the council may use to guide follow-up oversight.

Votes at a glance: - Postponement — Public hearings 1 and 2 (Good Samaritan Village, generally located at 2201 East 30th Street). Motion to further postpone the two public hearings until the May 13, 2025 council meeting. Mover/second: not specified on the record. Roll-call result: unanimous (6–0). Outcome: postponed to 2025-05-13. Note: the hearings were requested to be postponed by the applicant, Miller Associates on behalf of Evangelical Lutheran Good Samaritan Society (owner).

- Consent agenda postponement — Item 6 (amendment of a development constructed infrastructure agreement). Motion to postpone item 6 to May 13, 2025. Mover/second: not specified. Roll-call result: unanimous (6–0). Outcome: postponed to 2025-05-13.

- Consent agenda approval — Items 1–5 and 7–11. Motion to approve items 1–5 and 7–11 of the consent agenda. Mover/second: not specified. Roll-call result: unanimous (6–0). Outcome: approved.

- Acceptance of annual financial report — Motion to accept the City of Kearney annual financial report prepared by Creative Planning (presented by Burton KTV). Mover/second: not specified. Roll-call result: unanimous (6–0). Outcome: accepted.

- Open-account claim — Motion to approve the open-account claim to UNL Market Place. Mover/second: not specified. Roll-call result: unanimous (6–0). Outcome: approved.

Audit highlights and council follow-up: Tim Lehi summarized the draft financial statements and related reports. Key figures presented in the meeting record include: net position where assets exceeded liabilities by about $365,000,000 (an increase of about $21,000,000 from the prior year); combined governmental funds ending fund balance of nearly $42,000,000 (a decrease of about $21,000,000, driven by spending on capital projects); and a general fund reserve consistent with the council’s policy (about 25% assigned). Lehi said the auditors issued two findings: a material weakness tied to material journal entries required to finalize the statements and a significant deficiency related to segregation of duties given staff size. Lehi said a single audit was required after the city expended roughly $20,000,000 in federal funds; the auditors tested two major federal programs (capitalization grants for clean water and drinking water state revolving funds, together about $14,400,000) and reported no material noncompliance for those programs.

Council members thanked the auditors and city staff. The postponed hearings on Good Samaritan Village were rescheduled by motion for the May 13, 2025 council meeting at the applicant’s request.

The council adjourned after routine reports and no additional public comment.