Mayor Proposes Additional Levy Cut in '25 Budget

(July 23, 2024)

For the fifth time, Mayor Jean Stothert is proposing a property tax rate cut in 2025.

Mayor Stothert also reduced the City of Omaha tax levy in 2015, 2017, 2022 and 2024. The 3.3% decrease in 2025 will bring the total reduction in the city's tax rate to 11.94% in the last 11 years. The 2025 property tax levy will be 44.233 cents per $100 valuation.

The 2025 recommended General Fund budget is $531.1 million, a 4.8% increase over 2024.

Mayor Stothert presented her recommendations to the City Council two days before the expected beginning of a special session of the Nebraska Legislature to consider Governor Jim Pillen's property tax reform plan. While any change in Nebraska tax collections are not likely to impact the city's 2025 budget, Mayor Stothert said impacts in the next years may have damaging and unintended consequences.

"As the legislature opens the special session, we will be advocating for the citizens of Omaha, to benefit from tax reforms senators and the governor may agree on, without losing our momentum, or the ability to pay for the services we must provide," said Mayor Stothert.

The General Fund pays for police and fire protection and emergency services, trash collection, libraries, swimming pools and community centers, parks, summer camps, and employee salaries and benefits.

"Governor Pillen claims over-spending by local governments is the cause of Nebraska's high property taxes. I disagree," said Mayor Stothert. "I have carefully managed 11 city budgets. We end each year with a surplus, we have not implemented the levy increase approved by voters in 2020, and we have reduced our levy nearly 12%. We spend what we need to manage the country's 39^th largest city, we do not overspend."

REVENUE FORECAST HIGHLIGHTS:

• Estimated sales tax revenue: $249.9 million, 9.4% increase over 2024
• Estimated property tax revenue: $232.7 million, a 2.28% increase over 2024
• Estimated restaurant tax: $47.1 million, a 5.29% increase over 2024
• 2023 budget carryover $8 million

EXPENSE HIGHLIGHTS:

• Health Care-increase 7.3% to $85 million

$19,724 per employee

$24,987 per Fire Trust member (27% higher than the city plan)

The Cash Reserve Fund and Contingency Reserve fund balances are both $35 million. Together, the funds had less than $8 million dollars in 2013.

"Saving for emergencies is just smart budgeting. We will continue to increase our savings accounts," said Mayor Stothert.

2025 DEPARTMENT BUDGET HIGHLIGHTS:

OMAHA POLICE DEPARTMENT

The 2025 General Fund budget is $202.8 million, a 5% increase.

Rebuilding the Omaha Police Department sworn staff remains the top priority. OPD is budgeted for 906 sworn officers, unchanged from 2024. Currently, the number of officers is 780. An officer recruit class will begin August 5. Two additional classes are planned in 2025. The next application period for police officers will open September. The 2025 budget increases funding for officer recruitment. Five new civilian positions will be added including crime analyst, forensic technicians and social media manager. The number of civilian employees will increase to 174 budgeted positions. OPD is considering continued expansion of the Mental Health Co-Responder program with grant funding. In 2025, OPD will purchase 50 new cruisers; estimated cost is $2,263,531.

OMAHA FIRE DEPARTMENT

The 2025 General Fund budget is $136.8 million, a 3.7% increase.

OFD is budgeted for 669 sworn firefighters and eight civilian staff in 2025. The current number of firefighters is 648. The Omaha Fire Department has applied for a SAFER grant (Staffing for Adequate Fire and Emergency Response) that would increase firefighter staffing to 687 in 2025. A recruit class is scheduled to begin in October, with at least one class in 2025. OFD will continue to purchase equipment identified in the Fire Apparatus Replacement Plan, adopted in 2022. In 2025, $3.6 million is budgeted for apparatus replacement. OFD expects to purchase a total of 54 new vehicles through 2029, replacing the current fleet.

OMAHA PUBLIC LIBRARY

The 2025 budget is $22.3 million, a 6.6% increase.

In 2025, OPL will continue to add positions, to prepare for the opening of the Central Library. Eight new positions are included in the 2025 budget. Other preparations for the 2026 opening include creating an events team, staff training, curating the collections, and completing agreements for the café that will operate within the Central library.

PUBLIC WORKS DEPARTMENT

The 2025 Public Works operating budget is $224.3 million, a 7.1% increase.

The 2025 Major Street resurfacing is budget $10 million, a 25% increase from 2024. The 2025 Residential Street resurfacing budget is $10 million, maintaining the 2024 budget. The Solid Waste Budget is $39 million, a 5.7% increase over 2024. The budget includes the residential collection contract with FCC Environmental, disposal costs at the landfill, spring and fall yard waste collection and the recycling processing contract with Firstar Fiber. These contracts include an annual adjustment based on a Consumer Price Index factor.

PARKS DEPARTMENT

The 2025 General Fund budget is $28.4 million, a 3.2% increase.

The budget includes eight new positions including a caretaker for Mandan Park, and additional park maintenance staff, plus an increase in part-time/seasonal wages specifically for lifeguard and camp positions. The equipment budget will increase to $1.5 million, a 50% increase.

Mayor Stothert also presented the recommended 2025-2030 Capital Improvement Program (CIP).

The CIP outlines long-term investments in transportation, public safety, public facilities, parks, and environmental improvements, and identifies funding sources. The total for the proposed six-year CIP is $3.6 billion, including federal aid and philanthropic funds.

New projects added to the C.I.P. include the sixth Omaha Police precinct in downtown Omaha with an attached Omaha fire station, relocation of the Omaha Police outdoor gun range in Elkhorn, the expansion of the CHI Health Center Convention and Arena, a road diet on Center Street from 32^nd to 42^nd Street, the Levi Carter Sports Complex, improvements to Boyd and Jerry Parks baseball facilities in northeast Omaha, and a spray ground in Elkhorn.

The CIP also includes $135 million for streetcar expenses in 2025, including utility relocation costs, vehicles and professional services.

The City Council will hold a public hearing on the budget and CIP on August 13 at 6:30pm in the Legislative Chambers. The Council vote on the budget is scheduled September 10^th.

The recommended budget is available at this link: https://finance.cityofomaha.org/

The recommended CIP is available at this link: https://planning.cityofomaha.org/capital-improvement-program

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