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Cambridge officials outline plan for new 10,080 sq. ft. fire/EMS building, propose sales-tax reallocation

City of Cambridge City Council · October 28, 2025
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Summary

Mayor David Gunderson presented plans for a 10,080 sq. ft. fire/EMS building estimated at about $1.1 million and urged pursuing USDA and disaster-relief grants; council agreed to send a proposed reallocation of the city's 1% sales tax to the ballot and pursue grant/loan funding.

Mayor David Gunderson told the Cambridge City Council on Oct. 28 that the city is planning a 10,080-square-foot fire and EMS building and expects construction costs of about $140 to $150 per square foot, for roughly $1.1 million in total funding needs. "The proposed building size would be 10,080 sq. ft. and would cost approximately $140-$150 per sq. ft.," Gunderson said, noting the city has budgeted some funds and will apply for a USDA grant/loan and a disaster-relief grant.

Why it matters: The project would replace or expand current fire/EMS facilities and requires outside funding; council members emphasized that the city needs to assemble grant support and consider reallocating local revenue to cover its share without raising tax rates.

Gunderson said the rural fire board, which the city said pays half of the fire-department expenses, reported it has only $75,000 available for capital and equipment purchases this year and does not want to increase its levy. To broaden revenue options, he proposed creating a Building Fund for city properties (including the fire/EMS building, the old light plant, the museum and the community building) and reallocating part of the city's 1% local sales tax into that fund. Currently, Gunderson said, three-quarters of the 1% is allocated to LB840 and one-quarter to water; the proposal would shift half of the 1% into the Building Fund, leaving one-quarter to LB840 and one-quarter to water.

Council members agreed that changing the distribution should go to a public vote rather than be done administratively. Lisa Shifflet was asked to draft resolutions with language to reallocate the sales-tax allocation; the reallocation would appear on the regular ballot if the council pursues that route. Gunderson said the city will also seek donations to help cover costs.

Formal steps and funding sources discussed included the USDA grant/loan application and a disaster-relief grant; council members voted to move forward with grant applications and related preparations. The council did not vote on the project itself at this meeting; the action items were limited to pursuing grant opportunities and preparing ballot language for the proposed sales-tax reallocation.

The meeting concluded with a procedural motion to adjourn. Council member Kevin Banzhaf moved to adjourn at 5:35 p.m.; Vernita Saylor seconded. The motion carried 5–0 with one member absent (Jeff Ommert).