McCook City Council budget hearing: water and sewer rates set to rise amid major utility projects

September 3, 2025

McCOOK, Neb. — The McCook City Council opened a public hearing Tuesday on the proposed FY 2025–26 city budget, a spending plan that holds the property-tax levy at 44 cents per $100 of valuation, anticipates record local sales-tax receipts, and prepares for significant utility work at the water and wastewater plants.

City Manager Nathan Schneider read his five-page transmittal letter into the record and thanked staff who worked on the plan, calling the annual budget “the city’s financial road map” for Oct. 1, 2025–Sept. 30, 2026. He noted the state’s new budgeting rules under LB 34 complicated this year’s process.

General fund and reserves

The proposal lists $14.98 million in anticipated general-fund revenue and $14.96 million in expenses, a narrow margin that continues the council’s practice of building reserves. The budget adds $75,000 to the general-fund reserve, bringing it to $1,419,972 — still shy of the auditor’s three-month target.

“This budget does not contemplate the addition of any new personnel,” Schneider said.

Sales tax and the sports complex

Staff projects FY 2024–25 local-option sales tax collections to finish at $3.268 million, the highest on record. For the coming year, staff keeps the estimate conservative due to recent month-to-month swings.

Schneider reiterated that the voter-approved 0.5% sales tax for recreation is the primary funding source for the PFC Gerald L. Walters Youth Sports Complex and other amenities: “We’re mandated as a government—once a ballot question has been approved by the public—we have to move forward with that project.” He cited recent grants, including $1.5 million (RCRP) and $500,000 (CCCFF), plus private foundation gifts, to offset costs.

Utilities: major projects and rate adjustments

To address aging systems and regulatory needs:

• Water: The budget contemplates media and vessel repairs (≈$5M), manganese filtration ($5–6M) to reduce discolored water, a salt tank (>$300,000), a hypochlorinator (~$500,000), a second injection well ($3M), and $500,000 to repair the current well.

  
  

  Rates are scheduled to increase 10% at the start of FY 2025–26.

• Wastewater: Design continues on a $14.5M replacement plant using a sequential batch reactor (SBR) process.

  
  

  Rates are scheduled to increase 8%.

Public Works Director Pat Fawver explained the SBR will fit on the west side of the current site and “take care of nitrates… we’re planning ahead.”

Solid waste and other enterprise costs

Residential trash collection would rise from $28.25 to $29.75/month (includes $2 recycling). Household/commercial disposal would increase from $86/ton to $92/ton. Yard-waste service remains $6/month. The department also budgets for container replacements and a $110,000 waste-hauling trailer; a multi-year loader payment continues.

Capital items and department needs

Highlighted purchases include:

• Police: laptop and desktop replacements to meet paperless citation mandates; mobile camera upgrades as current systems age out; impound-yard security improvements; ballistic vests on a five-year cycle; and one patrol vehicle. “Those are necessities,” Chief Kevin Hodgson said.

• Fire/EMS: planning for a pumper truck replacement (the current first-out engine is a 2005 unit), cardiac monitor replacements, computers, and ongoing turnout-gear rotation. A state grant helped fund a recently purchased ambulance, now being financed over seven years.

• Library: recoating the concrete shade “mushrooms” at the south entrance ($15,000).

• Public Works/Parks/Cemetery: a used dump truck, mowers, paint machine, UTV with plow/blower for sidewalks, a turf groomer for the new fields, and security cameras at the Aquatic Park.

• Airport/ARFF: Ongoing compliance with Part 139 requirements; the city is evaluating options for the aging aircraft-rescue firefighting vehicle.

Insurance and employee costs

Given several large claims in FY 2024–25, the city proposes raising its self-insurance stop-loss threshold from $45,000 to $55,000 per employee and increasing maximum out-of-pocket limits from $1,000 to $3,000 (individual) and $3,000 to $6,000 (family) while adding an office-visit copay. Early estimates put property/liability premiums up about 25% due to market pressures.

Public comment: Work Ethic Camp labor

Resident Jason Hilker asked how the loss of Work Ethic Camp inmate labor will affect city costs. Staff said tasks will be absorbed by existing crews without additional expense, noting most of the WEC mowing assistance was at the cemetery and will be rebalanced internally.

Next steps: After closing the hearing, the council convened a second public hearing to set the final tax request and discussed large-ticket utility projects included in the overall 2025 budget framework. Final readings and adoption will follow in regular session.