Kearney City Council, (Brian Neben, Central Nebraska Today)
KEARNEY — The members of the city council got their first look at the proposed budget for the City of Kearney for the 2025-26 fiscal year. Fire Station No. 3 tops the list of nine capital projects.
Kayla James, Director of Finance, gave a presentation to the council during a special meeting held during the morning of Tuesday, July 22.
James said the total in the general fund for the next fiscal year will be $141,503,784, which is up from the last fiscal year of $132,236,709.
The capital outlay by fund total was $41,584,108, up from $41,344,491 last fiscal year.
There are nine top capital improvement projects, the top one being the proposed Fire Station No. 3 to be located on the northeast side of Kearney.
Kearney City Manager Brenda Jensen said that the proposed No. 3 fire station is planned to be built near the new water tower which is located near the intersection of E. 48th St. and N Ave.
The purpose of the location is to increase the ability to respond to incidents on the northeast side of Kearney. Jensen said as the community begins to expand in that direction, it becomes more important to have fire services close by.
The Kearney Volunteer Fire Department currently has Fire Station No. 1 in downtown Kearney along A Ave. and Fire Station No. 2 in northwest Kearney along 30th Ave. There is also a KVFD presence at the Kearney Municipal Airport to meet Federal Aviation Administration requirements.
The Fire Station No. 3 project total cost will be $12,350,000, which will come from public safety tax anticipation bonds.
The other projects are as follows, with their cost to the City of Kearney:
2: Airport Apron Reconstruction, $4,068,892
3: Box Butte Business Development, $3,745,033
4: Avene A, 31st St. – 35th St., $1,634,100
5: Landfill cell closure, $1,500,000
6: Avene N and 45th St., $925,000
7: Lead service line replacement, $800,000
8: Centennial Park playground upgrade, $400,000
9: Highway 30 lighting project, $300,000
The total cost of the projects will be $25,723,025.
Budgeted revenue for the next fiscal year is anticipated to be $126,396,793. The top three areas revenue comes from is charges for service, 34.1 percent, taxes, 23 percent and bond proceeds, 11.7 percent.
The top three sources of tax revenue for the city include sales tax, $19,242,826 or 60.7 percent, property tax, $6,349,142 or 20 percent and occupation tax, $4,343,390 or 13.7 percent.
Breaking down property taxes, the City of Kearney’s valuation is expected to be $3,841,801,922, estimating seven percent growth from last year. James told the council the final numbers will be certified in August.
The total property tax request will be around $6,334,053, with property tax levy of .16487 per $100.
Buffalo County’s property tax distribution shows that 66.6 percent goes to Kearney Public School, 19 percent to Buffalo County and 8.69 percent to the City of Kearney. Other amounts go to the natural resource district, community redevelopment authority agricultural society, technical school and the educational service unit.
Kearney’s sales tax revenue is expected to be $19,242,826 in the coming fiscal year, growing from $18 million last year.
James noted some of the challenges the city faces including sales tax revenue trends which have seen marginal increases coupled with state mandated tax incentive reductions, continued increase to costs of goods and services, increase to costs for health, dental and property insurance, uncertainty surrounding the future of property taxes, the city increasing services and work force challenges, including increase to minimum wage.
