Grand Island City Council Budget Study Session - June 30, 2026

The Grand Island City Council held a budget study session on June 30, 2026, at 6 p.m. to review budget proposals from several city departments. Council members present included Chairnier, Sheardon, Stelk, Conley, Nickerson, Brown, President O'Neill, Hazi, and Mayor Steele. Councilmembers Mendoza, Pollock, and Landfair were absent. Multiple department heads presented their fiscal year 2027 budget requests and answered questions from the council. Key discussions focused on staffing, technology investments, and facility improvements.

Public Comments & Testimony

• None were presented.

Discussion Items

• Library Budget Proposal (Selene): Library Director Selene presented the FY27 budget, noting a 2.4% decrease in personnel services (from $2 million to $1.984 million). The library is requesting one new FTE through an in-house promotion from Library Assistant I to Library Assistant II for a bookmobile driver/outreach position ($6,500 increase), and hiring two part-time employees at 20 hours each (no benefits, $52,227) to replace the promoted position. A reclassification of a librarian to Assistant Library Director is also under review, with estimated costs to be determined. The library added two FTEs and five part-timers last year, and Selene reported over 200 applicants for the part-time positions, which has increased flexibility. Operating expenses are projected at $598,800 (flat), with an additional $66,000 for computer replacements (IT recommends five-year rotation) funded via a transfer from the general fund. A carpet replacement project in the older part of the library is estimated to be under $300,000. Selene expressed excitement about the bookmobile, expected in spring 2027, which will enhance outreach and literacy. Councilmember Nickerson clarified that total changes amount to a slight increase (under $60,000). Councilmember Conley raised concerns about sustainability and questioned whether the Assistant Library Director role is a true reclassification given existing duties. Councilmember Hazi noted that the volunteer program is robust (over 150 volunteers per year) but volunteers cannot access private data. The library has added outreach programs to the Literacy Council, Stalley Park Gardens, and the Grand Generation Center.
• Information Technology Budget Proposal (Pat and Stephanie): IT Director Pat and Manager Stephanie presented a budget with personnel services down 0.48% (but likely to rise 1-3% after CPI adjustments). Operating expenses are up 30.4% ($370,310), totaling $1.8 million, a significant increase from $857,950 in FY24 and $882,665 in FY25. Councilmember Brown questioned what drives the nearly $1 million increase from FY24-25 actuals. Pat cited increases in contract services (approximately $100,000-$120,000) and machinery/equipment. A $100,000 line item for a closed AI system is proposed to aggregate ordinances, resolutions, and historical data. An RFP for a full ERP system consultant is in progress. Major equipment requests include VM host server replacements (over $200,000; servers are 9-10 years old) and PC replacements. Councilmember Hossey noted that server costs have more than tripled recently, and current prices are expected to persist until 2028. Councilmember Jack emphasized that $100,000 is insufficient for transformational AI; training, policy development, and environmental impact must be considered. A closed AI system and an AI policy are under development. Cybersecurity improvements, including multi-factor authentication and external vulnerability testing by the city's cyber insurance provider, were highlighted. Councilmember Hossey emphasized the need for ethical AI use and environmental offsets.
• Community Development and CRA Budget Proposal (Chad): Chad presented three divisions: Regional Planning (1% personnel increase, 8% operating expense increase of $2,400), Building Services (5% personnel increase, 44% operating expense increase including $40,000 carryover for the Problem Resolution Team (PRT) to demolish problem properties), and Grants and Housing (13% personnel decrease, 35% operating expense increase of $6,600 for travel/training). One new inspection vehicle is requested to replace a 2010 Ford Focus. PRT, which includes legal, building, planning, sheriff, police, and health departments, meets quarterly and has cleared several properties this year. Councilmember Brown noted that PRT uses funds case-by-case, considering whether property owners will re-offend. The CRA budget projects over 90 active TIF projects. Proposed 2027 face improvements total $450,000; life safety programs, $200,000; land purchase, $100,000; and other projects, $500,000 (including the Miller property on 4th Street for a future plaza). Mayor Vabritchak encouraged using the CRA's full statutory levy of 2.6 mills (currently 1.54 mills), which could generate an additional $500,000 annually. Councilmember Hazi supported raising the levy only if specific projects (e.g., Aquatic Center improvements, leadercrayons) are identified. Chad noted the CRA board is cautious without a defined need, and any increase would require council direction. The 4th Street Plaza will be funded partly by CDBG funds ($260,000) to defederalize CRA funds. Councilmember Sheldon preferred to wait for the leadercrayons life safety study (expected in 6 months) before committing to a levy increase.
• Jackrabbit Run Golf Course Budget Proposal (Sadonna): General Manager Sadonna presented a budget aiming for a positive bottom line for the first time. FY27 revenue is projected at nearly $1.4 million (10% increase), with expenses up about 5%. The course is currently on track to break even in FY26, with rounds up 8% and revenue up 10%. A 4% rate increase is proposed to offset rising costs (chemicals, equipment, food). Regional Manager Justin noted the budget includes a $43,000 (8%) increase in wages to $534,000. Capital requests include tree removal/planting, driving range improvements (signage, concrete mats for winter use, $12,000 estimate), deck replacement with expansion and new grill ($100,000+), parking lot regrading, and two Toro greens mowers ($95,060 total) to replace aging leased equipment (11-12 years old), which would save $12,000-$18,000 per year in lease payments. Councilmember Jack questioned lease vs. purchase economics. The course will host a US Kids Golf event and three Nebraska Junior Golf events. A new PGA Pro, Tatum Timbers, was introduced. Councilmember Nickerson asked about rate parity with competitors. Councilmember Hazi raised the issue of paving the parking lot (estimated $1 million), but it was noted the ground is a former landfill and still shifting, making paving potentially unwise. The irrigation system study will be conducted July 6-8 by Irrigation Technologies.
• VenueWorks Budget Proposal (Kyler): Kyler presented the Heartland Event Center budget, projecting $2.9 million in revenue and $3.5 million in expenses, with a $500,000 shortfall before the hotel occupancy tax ($500,000) is applied, resulting in a projected surplus of $655. Revenue sources include building rent, contractually obligated revenue (sponsorships, suites – suite rates have doubled) projected at $500,000 in FY27, food and beverage ($1.19 million), and ticket sales ($500,000). Expenses include personnel ($1.4 million), cost of goods sold ($377,000), event expenses ($668,000), and food and beverage ($175,000). Occupancy costs are decreasing slightly due to renegotiated maintenance contracts. A new chiller is expected to be operational by July 7. Kyler noted the building is on track to meet its FY26 budget without needing additional funds, improving from a $148,000 deficit in the first stub year. Councilmember Hazi questioned a $387,000 discrepancy between slides. Councilmember Jack discussed food and beverage improvements, tenant rental rates (e.g., $5,000 per Siege football game), and the importance of community events (e.g., Love Volleyball, Cornhusker Chaos) over concerts for profit. A marketing director position remains unfilled. Councilmember Hazi noted the city previously received bonds from Fawner Park for the facility, which were often misread as revenue.

Key Outcomes

• No formal votes were taken; this was a study session. Council members provided feedback and direction for budget revisions.
• The Library will proceed with requesting the new FTE and Assistant Library Director reclassification; council will review FTE requests in a late July session.
• IT's AI system request will be further developed with an AI policy and training plan before council approval.
• CRA levy increase discussion will be revisited if specific projects (e.g., leadercrayons, Aquatic Center) are identified and a life safety study is completed.
• Jackrabbit Run's rate increase, equipment purchase, and capital projects will be considered in the final budget; the parking lot paving issue is deferred due to the landfill.
• VenueWorks will continue to seek a marketing director and work toward reducing the subsidy.
• All budgets will be finalized after FTE discussions and CPI adjustments. Department heads were instructed to refine specific cost estimates and present completed packages for council approval.