Grand Island City Council Budget Study Session - August 12, 2025

The Grand Island City Council held a study session on August 12, 2025, at 6:00 PM to review proposed FY2026 budgets for multiple city divisions. The meeting covered Public Works Engineering/Administration/MPO, Streets, Fleet, Solid Waste, Transit, Wastewater, Electric, Water, and the FY2025/2026 Fee Schedule. No formal votes were taken; this session was for discussion and information gathering.

Public Comments & Testimony

• No members of the public came forward to speak on agenda items.

Discussion Items

• FY2026 Public Works Engineering, Administration, and MPO Budget: Presented by Mr. Kurtz. Engineering personnel costs up 5.49%, admin up 1.77%. A new citywide permitting software (OpenGov) was added, increasing engineering operating expenses by 18.98% but now absorbed into existing budget. The MPO budget is 80% federally funded; proposed budget $314,000+ with a city share of ~$63,000. The long-range transportation plan is near completion, reducing FY2026 expenses. Councilmember Sheard asked about impacts of federal cuts; Mr. Kurtz confirmed planning funds are stable.
• FY2026 Street Division Budget: Presented by Street Superintendent Shannon Callahan. The city has added over 200 lane miles since 2000, now responsible for ~970 lane miles (comparable to driving to Colorado Springs and back). The storm sewer cleaning program has flushed about one-third of the network; a focused approach using zones (e.g., Broadwell system, Custer system) is improving efficiency. Operating budget up due to vendor price increases (tariffs, insurance) and reallocation of traffic signal controller replacement to operating. New request: $15,000 for dead tree removal along highways. Capital equipment includes a dump truck (carryover) and a street sweeper ordered ahead to manage long lead times. Councilmember Hawsey discussed locates and insurance; Mr. Kurtz and Callahan argued against contracting out locates due to system knowledge and risk. Councilmember Sheard noted the fleet's favorable hourly rate ($120-155 vs. private shops at $160-200).
• FY2026 Fleet Division Budget: Internal service fund. Personnel up slightly; operating costs up due to parts and outsourced repairs. HVAC unit replacements planned. Discussion on centralizing fleet management: Councilmember Hawsey advocated for a centralized fleet manager to save costs and improve maintenance scheduling. Council President Sheard and Callahan noted that fleet currently operates as a mechanic shop with three mechanics, and some departments (e.g., police) may need more support. Councilmember Nickerson was surprised that mechanics sometimes have idle time due to departments not bringing vehicles in promptly.
• FY2026 Solid Waste Division Budget: Presented by Superintendent Jeff Wadier. Enterprise fund; no general fund support. Landfill has ~24 years of site life remaining in current 52-acre footprint (total 330 acres owned). Cell 4 construction budgeted at ~$2.6 million. Transfer station improvements (~$6.5 million) out for bid. Proposed 8% total budget increase ($35.4 million) with capital at 68% due to major projects. Personnel up 5.9%, operations up 15% (including a $1.09/ton increase in state regulatory fees). Rates remain competitive: transfer station $56/ton (uncompacted) vs. Columbus $69, Norfolk $78. Councilmember Nickerson commended the well-maintained site and free yard waste drop-off.
• FY2026 Transit Division Budget: Presented by Charlie Falman. 15 vehicles; FTA review in March 2025 went well. Operations contract with Brown Transit continues. Federal funding down 72% largely because previously ordered Ford Transits have all been received (last vehicle to replace this year). City's match for new vehicle: $17,000. Service reporting now done by city. No major system changes planned; a 2023 transit development plan recommended maintaining status quo pending state intercity bus service, which was eliminated from state budget. Councilmember Nickerson raised concerns about ride wait times; Falman explained the one-hour trip window system and that wait times should not exceed one hour.
• FY2026 Wastewater Division Budget: Presented by Matt Walker. Enterprise fund; revenue flat due to conservative projections and anticipated reduction from a large industrial user's improvements. Operating costs up ~17% from insurance, administrative services, and tariff-driven material costs. Capital projects include aeration basin membrane ring replacement, blower replacement (right-sizing), UV system replacement, collections building joint venture with police, manhole rehabilitation, and sanitary sewer extensions. Total capital ~$11 million. Councilmember Nickerson asked about inflow/infiltration during heavy rain; Walker noted the plant processed 44 million gallons per day during a recent storm, exceeding its UV disinfection capacity (28 MGD), requiring bypass. The FOG (fats, oils, grease) manager program is active with a preferred hauler list.
• FY2026 Electric Capital Improvements & Equipment Budget: Presented by Ryan Schmidt. Personnel up 6.1% including two new positions (power plant training coordinator and EIC lead tech) to address aging workforce and future generation needs. Power purchase cost down 2%; administrative costs up 10.6% due to insurance. Capital projects include distribution breakers, transmission relaying, overhead/underground infrastructure, and turbine overhaul parts. A spare set of turbine parts ($700,000) is proposed to reduce outage time. Rate increase of 3% already approved for FY2026; no rate increase anticipated in 2027 pending a rate study. Councilmember Hawsey discussed federal carbon regulations; Schmidt noted the 2032 deadline is stayed, giving Platte Generating Station a longer life. Also discussed possible AI-driven power demand and a land lease RFP near Swift.
• FY2026 Water Capital Improvements & Equipment Budget: Personnel up 4%, no new FTEs. Administrative costs up 5.1% from insurance. Major projects: upgrading a 1911-1929 water main on South Locust Street (from 6-inch to 12-inch), well-field improvements, VFDs on pumps, and lead service line replacement program. Lead service line program update: of 736 field-verified sites, 450 (61%) found to be lead; 147 replaced to date. Contractor can replace up to 15 services per week. Water rates are among lowest in state, but upward pressure expected. Councilmember Nickerson noted his own bill was $24 for a month with heavy watering, indicating room for moderate increases.
• FY2025/2026 Fee Schedule: Presented by Patrick Brown. Changes shown in red; minimal overall. Fire: SCBA bottle fill fee ($12). Ambulance fees adjusted based on regional average. Parks & Cemetery: increases for burial spaces, picnic shelters, athletic fields, aquatics (Lincoln Pool, Island Oasis), swimming lessons, Stuhr Park train, and turf field rentals. Police: records fee from $5 to $10, impound daily fee from $12 to $15 (cost-based with attendant). Engineering: cut and open permit up $5 to $30. New sanitary sewer connection application fee of $185. Various sewer service charge increases. Solid waste fees minimal. Utility fees increased. Councilmember Sheard noted the incremental approach is reasonable.

Key Outcomes

• No formal votes were taken; the study session served to present and discuss proposed budgets.
• The FY2026 budgets and fee schedule will be considered for adoption at a future council meeting.
• Notable directives: Councilmember Hawsey suggested centralizing fleet management; Shannon Callahan and others agreed to explore it internally.
• The fee schedule changes are expected to be included in an upcoming ordinance.
• Water and electric rate adjustments are already approved for FY2026; water may require further increases pending a cost-of-service study in 2026.
• The lead service line replacement program will continue at an accelerated pace with reimbursement from the state.
• The transfer station improvement project is out for bids; cell 4 construction at landfill is planned for FY2026.
• Transit operations remain stable; no major changes anticipated.
• The MPO will complete the long-range transportation plan and continue annual reporting.
• Streets division will proceed with storm sewer cleaning program and equipment orders despite long lead times.
• The city will monitor federal funding impacts on capital projects, but general planning funds appear stable.