Grand Island City Council Special Meeting - August 21, 2025: FY26 Budget Proposals and Capital Projects Review

The Grand Island City Council held a special meeting on August 21, 2025, at 6:00 PM in Council Chambers to discuss the FY26 Finance and Information Technology department budget proposals, review capital projects, capital equipment requests, and new Full-Time Equivalent (FTE) positions. Council members present included President Sheeran, Stelk, Brown, Hazie, Mendoza, O'Neill, Pollock, and Landwear, with Conley and Nickerson absent. Mayor Steele presided. City Administrator Laura McAloon, Assistant City Administrator/CFO Patrick Brown, and department heads presented and responded to council questions.

Discussion Items

• FY26 Finance Department Budget Proposal: CFO Patrick Brown presented a finance budget with personnel services increasing 3.8% and operating expenses increasing 31.9%. The operating increase is primarily due to a new three- or five-year audit services contract (Bergen BVD), with audit costs rising from $70,000 to $120,000. A proposed reorganization includes reclassifying the Assistant Finance Director to Controller, creating a Budget and Purchasing Manager position (to handle 12-month budget process and RFP oversight), moving utility billing to the Utilities Department, and moving the Grants Administrator to Community Development.

• FY26 Information Technology Budget Proposal: IT personnel services are increasing 7% due to reclassifying a Systems Technician to an IT Infrastructure Engineer (step three with benefits). Two of seven IT positions are vacant; six to seven highly qualified interviews are scheduled. Operating expenses increase 7.6% ($69,740) due to new antivirus software and Microsoft licensing. The department now protects approximately 500 devices and 60 servers with a 24/7 SOC package.

• Review of FTE Requests: New FTE requests were presented:

  • Police officer ($80,000) for fleet, code enforcement, and animal control duties.
  • Community Service Officer Lead ($80,000) and two additional CSOs (one half-year part-time, one full-time) for animal control.
  • Parks Maintenance Worker ($46,877 half-year start) as an irrigation specialist for approximately 60 commercial irrigation systems; will be primarily used in the park system but may assist the golf course.
  • Attorney ($150,000 step one) – City Attorney Carrie argued the position is needed due to city growth (doubled population, 40% land increase, doubled roads, tripled staff/budget). Contracting out would cost $250-$600/hour plus delays. Prosecution outsourcing estimated at $350,000-$400,000. Both attorneys currently work over 40 hours/week, falling behind.
  • Library Assistant part-time (five positions at 16 hours/week, $39,900 total) – no benefits; library needs to expand Saturday hours, meeting room revenue, and services. 230 applicants for a recent full-time position suggests easy hiring.
  • Reclassification of Police Office Manager to Support Services Administrator – Chief Kevin described the role as executive level, supervising four direct reports (including two supervisors, victim assistance, property room) and reporting directly to the chief. Pay goes from $40.11/hour (max) to $66.23/hour (tied to lieutenant pay grade). Some council members (Hawsey, O'Neill, Pollock) expressed concerns about the 65% pay jump, internal equity, and the reclassification process rather than a competitive posting. Others (Sheeran, Brown, Stelk, Landwear) supported it, noting it is the least expensive option and reflects expanded duties. The reclass would eliminate the office manager position; City Administrator noted the city does not lay off employees when reclassifying. Council split on the issue; no vote was taken.

• Capital Equipment: Items included a building inspection vehicle (replacing 2004 Ford Focus), police vehicles, and a firing range ($675,000). Council member Sheeran suggested deferring the firing range until other building projects (Heartland Ag renovation, code enforcement office, LEC gates) are completed. Chief agreed the range is lowest priority. A hybrid/electric vehicle discussion arose; currently no city chargers exist outside the Law Enforcement Center.

• Capital Projects:

  • South Locust Trail to Camp Augustine: Keith Kurtz provided an updated estimate of $4.3 million (including bridge), down from a previous $7 million figure. The trail would cross the South Platte channel within the park; a temporary trailhead is planned. Right-of-way acquisition is estimated around $50,000. Council expressed relief at the lower number.
  • Heartland Shooting Park: Jason Hornaday requested $534,000 for drainage, a new sporting clay loop, and storage building rehab. Council member Sheeran supported including the full amount.
  • Pier Park Lake: Council members reported persistent odor issues despite two of three fountains working. They requested a professional study on lake quality and potential solutions (dredging, aeration, chemical treatment). The seawall/sidewalk project may be delayed to address odor.
  • Island Oasis Renovation: Two options were discussed: (1) $3 million for pumps and filters (life extension, no visible improvements) and (2) $15.9 million for a complete renovation including a new splash pad, children's area, mini-golf, and extended season (March-October). Council differed significantly: some supported the full project (Brown, Hawsey, Pollock) citing wow factor and attracting families; others (Stelk, Landwear) preferred the $3 million repair or phased approach. O'Neill wanted data on attendance increases. Sheeran noted adding mini-golf alone could be a middle ground. No decision was made.
  • Ryder Park: Full support for renovation (approximately $4.5 million). Council member Pollock preferred the higher amount.
  • Stally Park Train Area: Supported.

• Fiscal Policy and Financing: Discussion on how to fund projects. CFO Brown reported city valuation increased 8.1% to $5.055 billion; the city proposes keeping the same tax ask of $12.086 million, which would lower the mill levy from 0.2610 to 0.2414. Excess reserves are near $20 million; Brown recommended using half to three-quarters for capital. Several council members favored bonding for larger projects (e.g., Island Oasis) and using cash for smaller ones. Hawsey suggested reviewing the city's fiscal policy (e.g., 30% reserve cap, 70% personnel cost guideline) and forming a committee. Stelk requested staff analysis on how much to draw from reserves, bond, or budget.

Key Outcomes

• No formal votes were taken; the meeting was a study session to gather council input for FY26 budget decisions.
• Council directed staff to:
  • Explore financing options (cash vs. bonding) for Island Oasis and other large projects.
  • Analyze the feasibility of a professional lake study for Pier Park.
  • Consider deferring the firing range capital request to future years.
  • Review the office manager reclassification in more detail; a study session may be scheduled to examine the police department's five-year restructuring plan and internal equity.
• CFO Brown will produce financial scenarios combining different levels of reserve spending and bonding for council consideration at a future meeting.
• Council expressed intent to hold additional meetings to finalize the FY26 budget and capital plan.
• The mill levy is projected to decrease if the tax ask remains flat, pending final decisions on spending levels.