Omaha City Council Meeting: Budget, Tax Levy, and Hotel Incentive (August 26, 2026)

The Omaha City Council met on August 26, 2026, to consider a $4.4 million property tax levy reduction amendment, approve the 2027 budget with numerous community service revisions, and decide on a $7.55 million hotel incentive. The meeting featured extensive public comment, debate on policy vs. statute, and a split vote on the levy reduction. The council also handled routine liquor licenses, TIF projects, and consent agenda items.

Consent Calendar

• Items 23–25 were on the consent agenda; item 24 was removed and considered separately. Items 23 and 25 were approved unanimously (7-0). Item 24 (not specified in transcript) passed 6-0 with one abstention (Councilmember Festerson).
• Items 26–36 (a block of public hearings) were approved unanimously (7-0).
• Items 37–44 (ordinances for contracts, grants, and interlocal agreements) were approved without opposition.

Public Comments & Testimony

• Item 14 (Tax Levy Reduction): Mayor Ewing opposed the 0.75-cent levy decrease, calling it a “switch out concrete for sand” that could create a structural deficit, risk nine firefighter positions, police hiring, and park matching funds. Residents Larry Store and Alan Seibert supported reduction; Cheryl Weston criticized the mayor’s interruption.
• Item 13 (One Omaha → Food Bank Shift): Over a dozen speakers opposed redirecting $40,000 from One Omaha to the Food Bank of the Heartland, arguing both organizations need funding and that the move was “egregious” and “personal.” Supporters of the shift cited the food bank’s ability to provide 120,000–160,000 meals per $40,000. Councilmember Goodwin defended the change, stating the funds were never allocated and that food security is a priority.
• Item 10 (Business Improvement District Funding): Cheryl Weston opposed approving funding without specifying which BIDs and events would benefit, citing potential conflict of interest with Councilmember Goodwin’s role at the North 24th Street BID.
• Item 6 (Curling Club & Parks): Nick Swersek (president of Exarbon Curling Association) supported $25,000 for a new curling facility.
• Item 7 (Heartland Hope Mission): Chelsea Salafi thanked the council for $50,000 to support their food pantry and intervention services.
• Item 8 (Nebraska State Historical, Youth Emergency Services, Irish Cultural Center): Calisha Reid (YES executive director) noted $15,000 would cover a year of hot meals and pantry bags.
• Item 9 (Workforce development, park maintenance, signs): No public testimony.
• Item 10 (BIDs, parks, North Omaha organizations): Holly Barrett (Downtown Improvement District) supported BID funding; Dana Murray (North Omaha Music & Arts) thanked for $10,000; Vicky Quaits Ferris (Native Omaha Days) requested cleanup funds. Cheryl Weston opposed without clear allocation.
• Item 11 (Self-Help Legal Center & Ramble Ridge study): Councilmember Melton explained the $40,000 study for pond dredging and $10,000 for legal self-help.
• Item 12 (Madonna Rehab & Wolf Pack Sports): Nick Brozzel (Madonna) requested $30,000 for recreation therapy; Councilmember Harding supported both.
• Item 20 (879 Bar Expansion): Holly Barrett opposed expansion citing ongoing violations. Attorney Michael Polk argued alleged tavern reports were not adjudicated.
• Item 22 (Drury Plaza Hotel EEA): Proponents included attorney Brent Bellar (project meets all codes, policy never adopted), Holly Barrett (design quality), and Cheryl Weston (no taxpayer cost). No opponents spoke.
• Item 21 (2501 Center TIF): Proponent Rahul Legerwall thanked council for 198 affordable housing units on a blighted site.

Discussion Items

• Item 14 – Tax Levy Reduction Amendment (Failed 3-4): Councilmembers Harding, Melton, and Roe proposed a 75-cent reduction in the property tax mill levy, shifting $4.4 million from property to sales tax revenue. Mayor Ewing testified that the change would risk public safety and park funding. Councilmember Festerson opposed, noting the amendment did not identify corresponding cuts; prior levy reductions were real with offsets. The motion failed (3-4: Harding, Roe, Melton yes; Festerson, Goodwin, Hug, Begley no).
• Item 13 – Redirect $40,000 from One Omaha to Food Bank (Passed 7-0): Councilmember Goodwin moved to reallocate $40,000 originally recommended for One Omaha to the Food Bank of the Heartland, citing impact (120,000–160,000 meals). Opponents argued One Omaha provides critical neighborhood capacity-building; Goodwin countered that funds were never allocated and food security is urgent.
• Item 22 – Drury Plaza Hotel EEA Incentive (Passed 7-0): Extensive debate over the city’s “downtown hotel policy” which the planning department and committees cited as grounds for denial. Attorney Bellar argued the policy was never adopted by council, was advisory, and that Drury would commit in writing to upper upscale amenities (brand, finishes, convention cooperation). Councilmembers noted fairness and potential to codify policy later. The redevelopment plan (Stage 1) was approved; a subsequent agreement will spell out requirements.
• Item 20 – 879 Bar Expansion (Denied 7-0): The council denied expansion of the outdoor area due to 17 tavern reports since December 2025, probation by the liquor commission, and unpermitted work.
• Item 21 – 2501 Center TIF (Passed 7-0): $3.6 million TIF for 180 affordable housing units (including row houses) at 25th and Center, replacing old Salvation Army buildings.
• Item 15 – 2027 Budget Adoption (Passed 7-0): Council approved the mayor’s $5 million parks investment (with $5 million philanthropic match), police/fire staffing increases, and a 6.9% general fund spending increase. Councilmembers noted the budget is fiscally sound but some wanted further tax relief.
• Item 16 – 2027–2032 Capital Improvement Program (Passed 7-0): Approved as recommended.

Key Outcomes

• Property tax mill levy reduction (Item 14): REJECTED (3-4). The resolution to cut the levy by 0.75 cents and increase sales tax revenue failed.
• Various community service budget revisions (Items 6–13): All APPROVED unanimously (7-0) except Item 13, which passed 7-0 after amendment. Total allocations exceeded $250,000 for parks, curling, food bank, youth services, legal aid, parks study, and more.
• Liquor licenses (Items 17–19): APPROVED 7-0 for Kid Lobby, Frozen Vines, and Crystal Jade.
• 879 Bar expansion (Item 20): DENIED 7-0.
• 2501 Center TIF (Item 21): APPROVED 7-0.
• Drury Plaza Hotel redevelopment plan (Item 22): APPROVED 7-0, with conditions to be codified in the future redevelopment agreement.
• 2027 budget (Item 15): APPROVED 7-0.
• Capital Improvements (Item 16): APPROVED 7-0.
• Consent agenda and remaining ordinances (Items 23–44): APPROVED as noted.
• Non-action items (45–77): Moved to future agendas; item 77 rescheduled per applicant request (7-0).
• Meeting adjourned at 5:48 p.m.