Hastings City Council Worksession – Budget, League, Chamber, and Economic Development – August 17, 2026

The Hastings City Council held a worksession on Monday, August 17, 2026, at 6:00 p.m. at the Hastings Municipal Airport, 3300 W. 12th Street, and adjourned at 8:21 p.m. All eight council members were present, with Council President Steve Huntley presiding. The council heard presentations from the League of Nebraska Municipalities, the Hastings Area Chamber of Commerce/HEDC, and site consultant Chad Chancellor, followed by a detailed discussion of the proposed 2026-2027 City and Utility budgets. No formal budget votes were taken.

Consent Calendar

• The council unanimously adopted the current agenda (8-0) on a motion by Michael Anderson, seconded by Larry Consbruck.
• Official notice of the worksession was published in the Hastings Tribune on Friday, August 14, 2026.

Public Comments & Testimony

• Jody Stutzman, 709 North Briggs Avenue, spoke on agenda item #4 (budget). She said a community is more than roads, buildings, infrastructure, and services, and urged the council to remember that budget decisions are also decisions about the kind of community Hastings will build.

Discussion Items

League of Nebraska Municipalities

• Lynn Rex, Executive Director of the League of Nebraska Municipalities, reviewed League work: legislative advocacy, technical assistance calls, training, and policy work. She emphasized that the League represents only Nebraska municipalities and speaks with one voice.
• Rex explained that Nebraska is a Dillon's Rule state, so cities only have powers expressly, impliedly, or necessarily granted by the Legislature. She described Nebraska's municipal government forms and the council's legislative/policy role versus the mayor/staff's executive role, calling the budget the most important document city government produces.
• The League's position is that Nebraska already has a hard property tax cap under LB34; it is concerned about proposals for an even harder cap and about unfunded mandates. The League also opposes sweeping funds from the municipal equalization fund.
• Rex noted Hastings still has capacity for an additional half-cent local option sales tax (from 1.5% to 2%), subject to voter approval, and that an LB840 economic development plan (which Hastings does not currently have) could be an avenue for voter-approved local investments. She also noted Hastings' creative district makes it eligible to access Civic Community Center and Community Financing Fund dollars in 2027.
• Lash Chaffin, Utilities Section Director, described the League's utility-focused work, training, and assistance to municipal utilities. He highlighted Hastings' unusual position as a city that owns all its utilities and its history in shaping state natural gas and annexation statutes.
• Hastings' League dues were reported as $55,094 under the high-growth, bifurcated dues formula; the amount would be over $103,000 without that formula.

Hastings Area Chamber of Commerce and Hastings Economic Development Corp. (HEDC)

• Shannon Landauer, Hastings Economic Development Director, presented on behalf of both organizations. She reported on business retention/expansion, target sites, workforce, housing, advocacy, and community data.
• Landauer stated the Chamber's message is "shop local first," because local sales tax collections need to stabilize and increase. She reported preliminary taxable sales data show a decline; some sectors grew, while construction, wholesale trade, real estate/rental/leasing, and accommodation/food services declined. The state may revise preliminary figures after audits and end-of-year filings.
• HEDC is marketing the city-owned Hastings Municipal site (50 acres with rail access) and the Morrison property on Highway 6, and has option agreements to control price and development timelines. She mentioned the old Eaton building has been improved for marketing.
• Landauer highlighted a revolving loan fund, housing progress (603 units added, about $94 million in project investment), a USDA-funded biofuel development opportunity zone, and Hastings hosting the 2027 Nebraska Economic Development Conference in April.

Site Consultant Chad Chancellor

• Chad Chancellor, a site consultant from Panama City Beach, Florida, provided feedback on Hastings from a site-selection perspective. He said jobs and investment create local revenue that supports schools and local government.
• Using eSRI five-year projections, he reported that Hastings is expected to grow by about 75 people and 113 households; low-income households are projected to decline by 4% while upper-income households increase by 4%, with average household income rising from about $92,000 to $105,000. Adams County showed similar income movement.
• He said a recent survey of site consultants found utility capacity (water, wastewater, and electric power) is the number one site-selection issue, with 76% identifying it as the top factor. He noted trends toward smaller headcounts and larger investments, and said NIMBY ("not in my backyard") opposition to development is a growing concern regardless of politics. He will not show clients a property that is not already zoned correctly.
• Chancellor identified the old Eaton building as Hastings' best current prospect, noting good electrical service and ceiling height, but said out-of-town owners are not highly motivated to sell.
• He discussed data centers as heavy users of energy and water but cited META's Monroe, Louisiana data center: first-quarter revenue compared with the prior year was $17 million more for the local school board, $11.5 million for Richland Parish, $980,000 for West Monroe, $700,000 for Monroe, and $380,000 for Morehouse schools. He told the council a large data center is "a license to print money" and encouraged communities to evaluate tax revenue before rejecting projects.

Proposed 2026-2027 City Budget and Utility Budget

• City Administrator Mark Funkey and Finance Director Roger Nash presented updated budget information. The city faces a $3.6 million general fund deficit and has used cash to balance the budget for three consecutive years; the gap is growing.
• Using Adams County valuation figures received that morning, the city's total available property tax ask for 2026-27 under LB34 is $9,886,964. This reflects about a 6% increase in valuation, roughly 0.5% growth, a state inflation factor of 5.26%, $503,000 in new allowable request authority, and $688,000 in unused authority carried over from the prior year.
• If the council sets the levy at 0.406359, the city could collect roughly $1.1-$1.2 million in additional revenue; a $200,000 home's city property tax would rise from $63.18 per month to $67.73 per month (a $4.55 monthly increase). This would generate about $1,179,089 for the General Fund and reduce the deficit by about 33%.
• Nash explained that if the city asks for less than about $9,417,782 (a levy below about 0.387076), it will permanently lose future tax authority. Only $469,182 of unused authority could be carried into next year. Staff recommended not setting the levy below 0.387076.
• Councilmember Hoffman asked about an additional half-cent sales tax. Funkey said the city has reviewed revenue options such as restaurant tax, dividend fees, and the annual levy. An additional half-cent sales tax would need to be proposed by a non-city entity and approved by voters; it could support an LB840 program or other public priorities. Nash added that the currently imposed half-cent sales tax supports parks, streets, and the museum, and when it comes up for renewal in about a year it could be used for any purpose, including general fund operations. An additional half-cent to reach 2% has restrictions and would not directly benefit the general fund.
• Councilmember Esch asked what would happen if the city did nothing and continued using cash. Funkey said the city would face very difficult need-versus-want decisions; Esch said it would eventually require cutting people and services. Funkey cited Aurora, Nebraska, which lost EMT service after running a deficit. Councilmember L. Consbruck said the city should also examine what is not needed; Funkey said he would present current-year cuts.
• Councilmember Rowan asked about the self-insured health fund. Nash said about $900,000 was transferred to the general fund this year and another transfer is planned for the 2027 budget; the recommended fund balance is $3-$4 million, and the combined fund began above $10 million. The transfers are one-time cash infusions.
• Nash reported the proposed budget includes personnel costs up 3%, general fund operations up about 1%, and roughly $2 million in capital requests; the overall increase is under inflation.
• Capital discussion included an obligated $400,000 remaining payment for the airport jet hangar, about $470,000 in local match for airport apron/lighting projects, a fire truck sinking fund payment of about $309,000, a $15,000 bulletproof vest purchase for 10 vests, and the cemetery paving phase six project, which was bid at about $537,000 versus a $605,000 budget. The mayor has not signed that contract; bids expire September 15.
• Councilmember Anderson asked about the 15-foot mower. Parks Director Jeff Hassenstab said it mows about 300 of the city's 520 park acres and the current 2016 TORO unit has about 6,400 operating hours. The replacement would be bought through state cooperative purchasing; the price has risen since the $93,000 purchase in 2016.
• Funkey said about $1.3 million in capital is obligated/committed and about $1.1 million is uncommitted and could be discussed as possible cuts. Deferred projects included the museum parking lot, lake maintenance, and Lake Hastings dam armoring; the dam armoring responds to DNR flood-overtopping modeling and would include an auxiliary spillway and armored backside.
• Reported cost reductions so far include eliminating one full-time finance position, eliminating four part-time positions, using about $140,000 in 911 wireless funds for police salaries/benefits, and closing an old police pension plan, producing a one-time cash benefit of about $700,000-$750,000.

Key Outcomes

• The only formal vote was unanimous adoption of the agenda (8-0). All budget and presentation items were discussion only.
• Staff will share the budget slides and a timeline with the council and will place budget discussion on the next Monday's agenda.
• The first budget vote is expected at the first council meeting in September (approximately September 14), with additional meeting dates on September 21 and 28 if needed; the budget ordinance requires three readings unless rules are suspended.
• The mayor has not signed the cemetery phase six paving contract, leaving its funding decision before the council; the city must act before the bids expire on September 15.
• City offices are expected to move back into City Hall by the end of August, with the September council meeting held in council chambers.