Hastings City Council Regular Meeting – September 14, 2026

The Hastings City Council met in regular session on Monday, September 14, 2026, at 6:30 p.m. in Council Chambers at 615 W. 3rd Street, Hastings, Nebraska. Mayor George Beckby presided, and all eight councilmembers were present. The Council approved a conditional use permit for a proposed micro social club, adopted the FY 2026-27 property tax request on a 5-4 vote, approved the fee resolution and appropriation ordinance, and authorized a litigation settlement after closed session.

Consent Calendar

• The Council voted 8-0 to adopt the agenda and 8-0 to approve the consent calendar. Routine items included approval of the August 24, 2026 Council minutes and August 17, 2026 worksession minutes; claims and payroll except the claim of Vaughan’s Printing; a report on Gas Improvement District No. 2026-1 (Lakeview 11th Subdivision); a letter supporting BNSF railroad crossing safety improvements on A Street; authorization of a $1,690,304.25 letter of credit through Five Points Bank of Hastings for the Hastings Groundwater Contamination Site performance guarantee; work orders CO-196, WA-139, GA-395, and EL-332; an addendum to the MacQueen Equipment purchase agreement; deletion of a portion of the liquor-licensed area for B & R Stores, Inc. dba Allen’s 32; approval of Our Little Angels’ use of city property for a Remembrance 5k on October 3, 2026; and two South Central Economic Development District contract amendments adding Build America Buy America language.
• Note: The live transcript indicates discussion about pulling Item C, claims and payroll except Vaughan’s Printing, from the consent agenda because Councilmember Esch intended to abstain on the separate Vaughan’s claim. The written minutes list Item C as included in the unanimously adopted consent agenda. The separate Vaughan’s Printing claim was later voted on and Esch abstained.

Public Comments & Testimony

• Edward Krontz, 1203 Nebraska, spoke during citizen communications about the budget. He said many people in the Fourth Ward do not want any tax increases, recalled that last year’s budget included $3.5 million related to the Council Chambers facility, and questioned why the City needed a similar amount again. He urged the Council not to raise taxes.

Discussion Items

Public Hearing – Conditional Use Permit for Johnny the Knife, LLC

• Mayor Beckby opened and closed the public hearing on the request of John Ferrone, Johnny the Knife, LLC (JTK), for a Conditional Use Permit for convenience retail, automobile use (micro social club) at 223 E. 14th Street. No opponents spoke.
• Applicant John Ferrone described a reservation-only speakeasy/martini lounge/microbar in a 400-square-foot space in the Crozier Professional Center. He said it would have about 20 seats, no external signage, a website-based membership/reservation system, and a dress code. He said he distributed information to 85 nearby households and apartments and all 28 building tenants, received no negative feedback, agreed with one tenant not to open to the public before 5 p.m., and received an informal city building, fire, plumbing, and electrical walkthrough approval.
• City Planner Ember Batelaan explained that the zoning code does not contain the words bar or alcohol, so convenience retail/automobile use was the closest code category. Staff found the proposed use would not negatively affect traffic, utilities, pollution, development patterns, or property values. The Planning Commission voted 6-0-1 to recommend approval with conditions: maximum 30 guests, hours of operation limited to 8:00 a.m. to 1:00 a.m., and establishment within 180 days of approval, defined as the start of renovation.
• Council discussion covered the unusual location, shared restrooms, building access, security, and the state liquor license process. After discussion with the applicant and Police Chief Adam Story, the Council approved Resolution No. 2026-55 by a 7-1 vote, with Councilmember Michael Anderson voting no.

General Business

• Approved the claim of Vaughan’s Printing in the amount of $420.00 by a 7-0 vote, with Councilmember Maggie Esch abstaining.
• Approved the 2026-2027 Salary Schedule by an 8-0 vote. City Administrator Mark Funkey reported a 3% cost-of-living adjustment after comparing with other Nebraska municipalities, including Columbus, Fremont, Grand Island, Kearney, Scottsbluff, Norfolk, and North Platte.
• Approved the wage addendum to the Fraternal Order of Police Lodge 9 Collective Bargaining Agreement for October 1, 2026 through September 30, 2027, by an 8-0 vote.
• Approved the wage addendum to the Hastings Firefighters Association Local Union 675 Collective Bargaining Agreement for October 1, 2026 through September 30, 2027, by an 8-0 vote.
• Approved FY 2026-27 insurance coverage by an 8-0 vote. Representatives Jeff Scanlan and Mark Frantz of FNIC reported an approximately 3% premium increase, led by auto and property coverage; property rates had leveled off. Workers’ compensation results were called exceptional, with an experience modification factor of 0.68.
• Approved the agreement with Rasmussen Mechanical Services for replacement of the Police Department heating boilers by an 8-0 vote. Engineering Director Lee Vrooman reported the low bid was $131,516, only one existing boiler can operate at 25% capacity, and installation is expected to be complete by mid-November.

Fiscal Year 2026-27 Tax, Fees, and Appropriations

• Resolution No. 2026-52, adopting the property tax request at a different amount for FY 2026-2027, was approved by a 5-4 vote. City Administrator Mark Funkey and Finance Director Roger Nash explained that the recommended levy of 0.406359 would add $1,191,889 in property tax revenue. Combined with a proposed $500,000 increase in utility dividend revenue, the City would gain just under $1.7 million, reducing its projected $3.6 million general fund deficit to roughly $1.9 million. The increase was described as approximately $4 per month for a $200,000 home. Staff warned that without action the City would run out of money around 2030. Council discussion focused on wage increases, flat sales tax revenue, possible future cuts, and the risk of losing unused property tax authority if the levy fell below about $0.38. Mayor Beckby cast the deciding yes vote; Councilmembers Steve Huntley, Michael Anderson, Larry Consbruck, and Marc Rowan voted no.
• Resolution No. 2026-53, adopting the 2026-2027 Annual Fee Resolution, was approved by an 8-0 vote. The resolution did not include the proposed additional $500,000 utility dividend. Parks and Recreation Director Jeff Hassenstab said there were no major fee increases, aside from after-hours space rental fees.
• Ordinance No. 4844, the Annual Appropriation Bill for FY 2026-2027, was approved by a 5-3 vote without the proposed additional $500,000 utility dividend. A motion to amend the budget to reduce it by $500,000 was withdrawn after clarification that the dividend would be revenue rather than an expenditure and could be handled separately. Voting no were Councilmembers Steve Huntley, Larry Consbruck, and Marc Rowan. Staff noted the appropriation ordinance requires additional readings.

Micro-TIF Amendment

• Resolution No. 2026-54, amending expedited reviews of redevelopment plans (Micro-TIF) from 60 years to 25 years, was approved by an 8-0 vote. City Planner Ember Batelaan explained the change aligns Hastings with Nebraska Revised Statute §18-2155. Micro-TIF is used for smaller redevelopment projects, including single-family residential projects in substandard and blighted areas, with a maximum project value of $350,000 and a maximum 15-year TIF note. Three local projects have used the program.

Closed Session and Litigation Settlement

• At 8:42 p.m., the Council voted 8-0 to enter executive session to discuss a pending litigation claim regarding sewer damages on Woodland Avenue, possible authorization of settlement authority, and real estate purchases. The Council returned to open session at 9:02 p.m., with no official action taken during the closed session.
• Following the closed session, the Council voted 8-0 to authorize the Mayor and City Attorney to settle the claim pursuant to the authority requested. The meeting adjourned at 9:03 p.m.

Key Outcomes

• Approved the Johnny the Knife, LLC Conditional Use Permit by a 7-1 vote.
• Approved the FY 2026-27 property tax request by a 5-4 vote, the fee resolution by an 8-0 vote, and the annual appropriation ordinance by a 5-3 vote.
• Approved all routine consent items, salary schedules, union wage addenda, insurance coverage, and the Police Department boiler replacement agreement.
• Authorized settlement authority related to the Woodland Avenue sewer damage claim by an 8-0 vote after executive session.