City finance report shows fiscal restraint; council warned of uncertain state tax-refund liability

Finance Director Jennifer Knapp presented the city's unaudited FY25 financial report and told the council the city has generally met its commitments: reserves were spent on approved projects (including the fleet and ARPA-supported stormwater work) and the city has funded staffing increases in police and fire that contributed to a roughly $1.9 million rise in salaries year over year, partly tied to new legislation.

Knapp cautioned that revenue comparisons are affected by fewer federal funds and the completion of the library project (donations were higher the prior year), and that lower investable balances reduced investment income as interest rates fell. She said the city still expects to have funds available for projects planned in FY26 and FY27.

Councilman Von Barron asked whether tax-refund applications and state actions under the Nebraska Advantage or Imagine Acts could create a liability for the city. Knapp and staff replied the city receives notice when the state records a refund application and that the city may be notified of a withholding (staff cited a prior instance where $122,000 of sales-tax receipts were withheld for a refund); however, officials said they do not always know which company or how many such refunds will affect collections until formal notice arrives.

Council moved to receive the city's financial report; staff said they will continue monitoring state actions and provide follow-up as additional information becomes available.