September 15, 2025 at 6:00 PM - Beatrice Regular City Council Meeting

Discussion:  city looking at power supply in 2031 - rate study to review & give 

john - since 2008, great things serving customers well.  think about how we run our system compared to others.  changes going on in industry, power costs, competitive now & wil continue to be competitive.
2021 - no rate increase, changes to _________, if no changes, our rates would be fine.  at end of contracts, power costs wil be hire & changes n power, costs need to be recovered.  2030 expire, 2031 cost structure chnage.  avoid having to raise 40% in 2031 - phase over time

commpetitve with other utiiliites, maintain financial performance, very fortunate even with 
projected 4 years out - clear pursuing power plant most cost effective.  very fortunate time when we entered contracts.  now costs going up reserve margins require to buy more generation.   prices of gneratoins have gone up.  need for funding project in 2031 is driving rate changes now.  long term need to go up 30% -start stair stepping  - 6% annual incraes over next 2 years. TT - need to raise for power plant, same if buy in market.  Yes, power plant cheapest route, if not likely would look at 7-8% incrase now.  provides longer term ______ & not at control of market.  duel fuel 
Hydo - need energy, & capacity -why?  JK - not perfect storm, looking 6 years out, fine now, hav time to adequately plan for this change.  complicated time in power now, great position tho.
Capaicty - to serve single highest hour of usage on your sytem peak 43 megawatts - highest used 43,000 in 1 hour - that is how much we have to buy +plannng reserve margin + 16% in reality 48-49,000 megatwatts.  in future NPPD??? winter margin - will be 1.4 megawatts, will need generator on ground or __________ to cover 
Energy - every day we need to serve,  analogy - capisity is like speedometer in car,odometer is energy.
Terry - have choices but not a lot, either stair step instead of all at once down the road. JK - finances ok, but when big change comes in 2031 will have to issue revenue bonds, one thing they look at is what is your rate structure look like. having a head start will help with rate agencies.  
Ruh - power plant will it be used or just when needed?  JK _ SWPP - have to look at how much energy & capacity it needs, projections estimate will run 25-35% of the time.  most likely will not run at night unless severe energy, may run early am & evening peak.  summer - 10-11pm, or 3-8. JK - will get paid to run for SWPP.
gray - preliminary TT - yes; mayor - also have time & will eventually save consumer money, puts us on path to sucess.  unique spot for many cities.  JK - majority dependent upon NPPD, OPPD,   MEAN - 10% rate increase many cities 6-7% to pay fr that.

Cost of service - reasonable, cant be non-discrimanatory,  Key finding s- extremely low customer charge.  cost $per/moth to serve customer.  transformer on pole, reading meters & sending out currently $12.00 per month - dos not cover the cost; move customer charge up to appropriately recover cost.  winter rate - need to raise somewhat to ilimiate 
Rate Design - reflecting stability.  phase in over couple   CUSTOMER CHARGE - raise all customer charges; increase winter rates, increase residential electrc heat & general service space.  remove irrigation rate schedule.
Proposed Rate Design changes - implement infrastructure charge - collected to be used for $300 month; $4 month; Generl $10.00; special fund for infastruture projects- genreatiom project,
Gary - running a business, not making moey, eventually will run out.  JK -set aside $ to help with future project.  PUt in new substation, this could be funded as well
Hydo - infra structure to help with low customer change?  JK -yes, will help address the customer charge, but designating a portion to infrastructure chage& double in FY27

Typical residential increase $5.25/month  $3 infer $2.25 energy 

peer group LES, Crete, Norris PPD, NPPD - with this, LES still lower, however our rates still lower than other entities.  LES- just raised rates mid year; for Beatrice with 12,000 having competitive rates, speaks well to be compeltive with LES 225,000.
Eskra -are they charged energy/capacity like us?  JK- yes power plant 70th/I80 combined site -  everyone having same issues & follow same rules & regulations.  all in same boat.  HYdo - what year?  JK- in effect 10/1/25 to current rates.

General service - right there with range of reasonableness - load factor, very competitive
Conclusion- need to raise $6.6 million - cost of service 
recommendation to adopt rate ordinance, first step of rate incrases.  1st in 10/1/25 & 10/1/26. - opinion will need to raise rates further, plan on seeing rate increase in few more years.  look then & proceed as wish.  appreciate engagement. Mayo r- have to make a decision on what other competitors hae done that has led to sucess.    Eskra - should raise in 28 & 29?  JK - likely a need doing due diligence to make good decisions

Discussion:  barnard - what is this for?  TT- alleged sewer backup

Discussion:  last meeting went over budget, set preorty tax request - proposed $3,811,235. tax rate increase of _________;  new state budget form, $3.3 + growth rate + inflation + exemption for bonds + exemption for prior unused tax authority = $3.8 million request.
Doyle - look at city only has been taxing for long period of time - highest tax just city changed in 2019 was $400, lowest was in 2003-04 & $274 - $60higher for next year; hard to imagine, only talking about city of Beatrice just over 20% that time.  councils try to do best can to keep as low & still give them all they are asking.  as well as working to apply for grants.  also don' have people come to these meetings. trying to continue to meet complex rules & reg & keep all employees, dept heads, - thank Hannah & dept heads to look 8 years out.  did a great job on the budget.  Mayor - have to look at if you don't take that step, will be behind - will defend th ebudget.  he didn't want to do that cut out $830,000 that theywill ot get back that will affect their public safety/  have to look for future, otherwise when cash reserves are out, 

Discussion:  sets property tax levy

Discussion:  supplement budget - have a few spots .  general fund $445,000 grant funds - most not budgeted for, but received; depsters $__________; public safety debt - not issued: health insurance claims & reimbursement with reinsurance $1.3 mill; cdbg - carried over $872,000; capital improvements - demisters demo $106,000; RCRP grant - didn't budget for, kensington into playgrounds; sanitation has a few items - vehicles, etc., however had additional revenues as well; electric - didn't have radiant tech - additional power purchase; water dept - usually avhe capital projects to make up, but only had 1 & that was boring river - had many little things that needed to be taken care of.

 

Discussion:  tif project - bowling alley.  rehab & refurbish.  cra, p&z, cra, CC & then back to cra.  red area created in 2020?  meets all specs for tif, mot will be for site acquisition.  
michelle - excited all in - community needs this 
Mclain -thank for investing in commuity
\Barnard - thank you.

Discussion:  Under oath - Chet - no concerns  Jay - no issues
 

Discussion:  selling ground has been zoned AG - 1 with house, other for acreage - most other is RR

Discussion:  talked aout for a number of years, time to finalize it.  
HB - purpose short & long term financial stability, making sure middle ground, protected from liabilities & not being too stingy & hoarding
fund balance - governmental funds GF, Street, Airport - REstricted, committed - COVID-19, assigned - lodging, ems, unassigned - residual balance
net position - enterprise fund - elec, water, wpc, sanitation
general fund 25-50%
street 25-50 oeprating
airprt 25-50% op
enterprise - el, wtr, wpc - 25-50%; electric also 25%
sanitation - looking at capital funds as well - purchase of a garbage truck
BASWA 15-30% operating

special reserve funds - restricted/unrestricted - infrastructure funds, stability, customer deposits, closure/post closure

internal funds - EBA funds to pay health claims large outstanding liability 
unique funds - not need - debt reserve funds, no need to define IT - as funds roll in, no need; 

Resreve - unanticipated when below %, proposing to have plan in place over 3 fiscal years, in order to have an entire budget yera
if exceed - identify capital or new projects - reduce city indebtedness, not using for recurring operating expenses

monitor & review - plan to look at this during budget & audit - every 6 months good time to review
examples of where funds would be

TErry - sales tax?  HB - adtional tax flows. nothing wrong with having guidelines
Gary - appreciate looking down the road & have something in place that sounds reasonable
Mayor - 3-6 months cash in bank at any one time.

Discussion:  every year with budget - fee review
ambulance rate increase
\water park rates
camping rates 
added mow to own fee
hydrant meter fees - fire hydrant usage, no fee written down - same fee charged for years now 

Discussion:  represents all excpet police & fire - 6 year contract - proposed amendment to remove maximum wage for all employees; now regardless eventually hit max & can't give increase - not incentivize to be 
also very typical that electrical lineman pay from time leave & return - 200% or job where they are working - doesn't negatively impact - city bills customer/& we are reimbursed.  there 6-7 days for quite some time.

Discussion:  issued rfp - received 1 that was on time, other not on time, ultimately renew with brag, similar rate to $72,000 from $60,000 since he has been doing

RUh -why 30 minutes to respond?  TT _has been response since beginning.  Ruh - concern with that

Discussion:  next plat - helps iwth legal description

Discussion:  plat discussed 1 selling land to another into 1 lot

Discussion:  into stomrwater detention.  lots vacating - just to east of pond, lot 30 west of pond, much needed for stomrwater detention pond - someone indicated interest in part of ground.  previous ground not vacated.  this was previously platted & no rezone needed.  Mayor - long process

Discussion:  water rate ordinae increase of infra fee $2.00 per month. slight increase per gallon for Koch & Agrium - also some others - _________ similar to infra fee

Discussion:  wpc - inrase $2.;00/mo & permitted users
Hydo - how much more?  $9.25/month for typical residential customer

Discussion:  peddler permits door to door - whether or not keep, consensus to keep, clean up.  redline copy - application what is needed to be presented, fingerprinted, background check, all same as today, cleaned up section.

clerk/city clerk fourteen days - clarified calendar years.  old revocation - said we mailed letter; will now notify if we wish to revoke, will email & call so they can appeal. may be a better way to reach if needed.

Discussion:  MP wishes to set max stay: riverside 7 days; chatauqua 30 days - if asked to leave, fee non-refundable.

Discussion:  requried by law for non-union employees 2.5%; IBEW is 2.5%  Fire 2.5%; FOP under negotations.

Discussion:  union contrats in place 2.5% increase IBEW & Fire.  FOP - will bring back

Hydo - what are the ABCDEFG??

TT - salary steps, typically each year, or other requirements.
IBEW got rid of steps decade ago & now no maximums
 

Discussion:  aquatic park study if not able to attend, survey is on website - 10-12 questions to provide input for water park
forestry grant - awarded another - allow for more tree surveys in park, expand to other areas
astro park - work has begun, 10 days to 2 weeks to complete