Hastings City Council Worksession: Budget & Senior Center Update (July 20, 2026)

This worksession of the Hastings City Council was held on July 20, 2026, from 6:00 PM to 8:04 PM at the Hastings Municipal Airport. Council President Steve Huntley presided. The primary topics were an update from the Midland Area Agency on Aging (MAAA) and a detailed review of the proposed 2026-2027 City and Utility Department budgets. The council unanimously voted to change the meeting order to allow the Utility Department presentation to occur first.

Consent Calendar

• The council voted unanimously (7-0, with Maggie Esch absent) to adopt the current agenda, incorporating a change in order so that the Utility Department budget presentation preceded the Senior Center update.

Public Comments & Testimony

• Jody Stutsman (709 N. Briggs Ave.) addressed the council, criticizing what she characterized as a lack of a consistent financial strategy, specifically citing the reversal on a restaurant tax vote as an example. Mr. Stutsman urged the council to present a detailed spending reduction plan if they oppose new revenue, posing three specific questions: what programs would be cut, how much would be saved, and how services to constituents would be affected.

Discussion Items

Update from Midland Area Agency on Aging (MAAA) and Hastings Senior Center

• Casey Muzic, Executive Director of MAAA, presented an overview of the nonprofit agency, established in 1973 to serve eight Nebraska counties. She highlighted key statistics for Adams County, including serving 1,188 clients and 28,488 meals in 2025. Ms. Muzic noted that 41% of clients cannot afford the cost of living on a $1,300 monthly income and that 54% of home-delivered meal clients live alone.
• Regarding the Hastings Senior Center, Ms. Muzic explained that MAAA has operated it since 2019. The facility has seen a 25% increase in congregate meals (from 6,391 in 2019 to 7,900). She stated the kitchen is too small to handle the current volume, forcing the program to cater meals at a higher cost per meal. Ms. Muzic expressed a position favoring a transition to an intergenerational community center, using Randolph, Massachusetts as an example, which she described as an eventual necessity for efficiency and service improvement.

Proposed 2026-2027 Utility Department Budget

• John Krajewski (JK Energy Consulting) presented the results of a cost-of-service study for the water and wastewater utilities. He recommended implementing a 1.5% annual water rate increase for FY2027 through FY2029 to avoid a larger spike in 2029, and a 10% annual increase for the CMS service area for the same period to reflect its higher cost of service. A new inclining block rate structure was proposed to encourage conservation, with a lower rate for usage under 5 ccf. He stated that Hastings water rates are on the higher end among peers while wastewater rates are on the lower end, and he recommended no system-wide wastewater increase.
• Derek Zeisler, Utilities Manager, confirmed the rate study recommendations were fully incorporated into the proposed budget. A key discussion item was the proposed Solar Phase 3 project ($25 million, 10 MW). Mr. Zeisler framed this as a prime opportunity to capture a 40% Federal Investment Tax Credit (approx. $10 million), emphasizing the value of generation diversification. He acknowledged a 20-30 year payback period but stated the project has no immediate impact on utility rates. He requested keeping the project in the budget to allow for further evaluation and a formal RFP before a final commitment.
• Councilmember Hoffman commended the utility for diversifying generation. Councilmember Anderson stressed the need to attract large industrial power users. Councilmember Rowan asked about wind power, to which Mr. Zeisler responded that it does not currently make economic sense for the city. The average combined residential utility bill across all utilities is projected to increase by approximately 4%.

Proposed 2026-2027 City General Fund Budget

• Roger Nash, Finance Director, focused his presentation on the structural deficit in the General Fund. He explained that since FY2023, the city has relied on cash reserves and one-time fixes to balance the budget (a statutory balance), which he described as unsustainable. The four main revenue sources, comprising 74% of total General Fund revenue, were identified as Property Tax ($8.6M for General Fund), Sales Tax ($6.4M, capped at 1.5% without a new vote), Municipal Equalization ($1.26M, at risk of state cuts), and the Utility Dividend Fee ($3.6-3.8M).
• Mr. Nash projected a $3.6 million operating and capital deficit for FY2027, which would reduce cash reserves from $10.5 million to $6.8 million. He stated that if current spending trends and tax asking continue, the city will be significantly challenged to provide a legally balanced budget within two years. He further explained that state-imposed caps on property tax asking limits the council's ability to close this gap quickly, requiring it to be addressed over multiple years.
• Mark Funkey, City Administrator, provided a breakdown of where property tax dollars go (city receives ~19-20% of total bill) and outlined the services funded by the General Fund. He presented the budget timeline: second draft presentation scheduled for August 17th, new valuation numbers due from the county by August 20th, and final budget readings and approval in September (September 14th, 21st, and 28th). He informed the council that hard copies of the budget are available for $92.

Key Outcomes

• No formal votes were taken on the proposed budget or utility rate packages; this session was strictly for information and discussion.
• The council and staff agreed that councilmembers should submit questions and desired changes as soon as possible to allow staff to analyze implications before the August 17th second draft worksession, avoiding last-minute September adjustments.
• Staff was directed to keep the Solar Phase 3 capital project in the budget for continued evaluation, allowing time to secure a fixed price for equipment and assess the federal tax credit before a final council vote on proceeding.
• The structural General Fund deficit and state-imposed levy limitations were clearly established as the central policy challenge requiring explicit council decision-making in the near term.