Grand Island City Council Study Session on Parks and Recreation Project Financing – August 5, 2025

This study session of the Grand Island City Council focused on financing options for several major parks and recreation projects. The council reviewed the city's fiscal position, including general fund reserves and sales tax revenue, and discussed potential scenarios for funding improvements to Island Oasis Water Park, Ryder Park baseball field, Stally Park train area, and the South Locust Trail to Camp Augustine. No formal votes were taken, and the session ended with a public comment from Brad Melama, who advocated for the trail connector and announced a future presentation. The meeting was adjourned early to allow preparation for the regular council meeting at 7:00 p.m.

Budget Overview

• Assistant City Administrator/CFO Patrick Brown presented the FY2025 and FY2026 budget projections. FY2025 ending cash is projected at $38.3 million, with excess reserves of $22 million after meeting the 30% reserve policy ($16 million). FY2026 draft shows ending cash of $38.3 million and excess reserves of $25 million, though operating expenses were lowered by reducing contingency from $2.9 million to $500,000.
• Sales tax revenue is 1.7% ahead of last year's collections. The FY2026 budget includes $1.3 million in casino/gambling taxes, up from $750,000 originally budgeted.
• Councilmember Hawsey suggested considering one-time property tax relief from excess reserves or casino tax revenue. Brown noted that $1.3 million in casino tax would equate to roughly $14 per household. Mayor Still and Councilmember Hossey expressed interest in exploring property tax relief.
• Councilmember Sheard asked about unfunded requests for new FTEs (police, library, parks) and capital items, indicating that the draft budget does not yet include those. Brown confirmed that the full budget will be brought back for further discussion.

Discussion of Specific Projects

• Island Oasis Water Park: Brown presented three improvement options: immediate repairs ($200,000, completed), basic improvements ($2.2–2.7 million, adjusted to $3 million for inflation), and enhanced significant improvements ($12–17.5 million, now $16 million). The basic option would extend the park's lifespan by 21 years. Councilmember Nickerson advocated for fully funding the enhanced plan, noting the park's central location and potential to serve visitors from major events. Councilmember O'Neill cautioned against changing plans late in the design process and emphasized the value of having facilities spread across town. Councilmember Sheard suggested considering a combined aquatic center at the Good Life District, but others noted that the water park is already well along in design (a $1 million design contract is nearly complete). Mayor Still proposed waiting to see the Good Life District plans before committing to Island Oasis improvements, but this was met with opposition from Nickerson and O'Neill.
• Ryder Park Baseball Field: Cost estimated at $3.745 million, with donations of $182,662. Brown used $4 million in financing models. Turf life is 10 years, so a shorter amortization is advisable.
• Stally Park Train Area: Cost $2.5 million, with $800,000 in donations. Councilmember Nickerson urged not to delay this project due to strong community contributions.
• South Locust Trail to Camp Augustine: Cost estimated at $6 million. Brown noted that the project could be funded with a combination of food and beverage, general fund, and 2004 sales tax. Councilmember Hossey raised concerns about walkability/bikeability of the northern location, but Brad Melama later argued the trail is a critical connector for the growing recreational area.

Financing Scenarios

Brown presented four scenarios:

• Scenario 1 (10-year amortization): $9.5 million total (Ryder $4M, Stally $2.5M, Island Oasis basic $3M) plus debt of $9.65 million, annual payment ~$1.1 million using food & beverage and general fund.
• Scenario 2 (15-year amortization): Same projects, annual payment ~$871,944.
• Scenario 3 (10-year, includes South Locust Trail): $15.5 million total, payment split across food & beverage, general fund, and 2004 sales tax.
• Scenario 4 (15-year, includes trail): Annual payment ~$1.4 million.
• For the enhanced Island Oasis ($16 million), a 20-year amortization at 4.65% would yield a $1.36 million annual payment from 2004 sales tax and general fund. Councilmember Nickerson expressed preference for scenario 4 but with a shorter term for Ryder Park (10-year) to match turf life. Brown noted that financing all projects (including enhanced water park) would total ~$30 million and could require using 2004 sales tax, affecting street projects.

Public Comments & Testimony

• Brad Melama (hospitality industry representative) spoke in support of the South Locust Trail connector to Camp Augustine, calling it a “heavy lift” but essential for Grand Island's growth. He noted that private investments are flowing into the community and that the city must deliver recreational experiences. He announced that Tim McCoy will present details on the Camp Augustine project at a future meeting (August 19). Melama emphasized that partners (Grow Grand Island, Chamber, Community Foundation) are willing to fundraise and work with the city on grants. He asked council to keep an open mind and promised data on similar projects in Nebraska.

Key Outcomes

• No votes or formal decisions were made. The session was for discussion only.
• Council directed staff to bring back a full budget incorporating requested FTEs and capital items, and to consider property tax relief.
• A follow-up study session on the Camp Augustine trail connector is scheduled for August 19, 2025.
• The meeting was adjourned at approximately 6:50 p.m. to prepare for the regular council meeting at 7:00 p.m. Note: The agenda listed the study session start time as 6:00 p.m., but the transcript begins with “The time is 7 p.m.” This discrepancy may indicate a transcription error or a late start.