North Platte’s proposed 2026-27 budget would collect about $316,500 more in property taxes than this year, which would be another year of a relatively modest increase.

City officials plan to lower the property tax rate again. The city’s tax rate (levy) has declined by about 22% since 2021, City Administrator Layne Groseth said.

The city council looked at the preliminary budget Monday during a work session. No formal action was taken.

The city’s total property tax request is proposed to be $8.1 million, compared with $7.784 million in 2025-26, an increase of about 4.1%.

At the same time, the city levy would fall by a similar percentage, from 0.358 to 0.344, a decrease of about 3.8%.

The city can lower the levy while collecting more property tax revenue because the taxable valuation of property within the city limits continues to grow. The total valuation of property is projected to be about $2.352 billion for 2026-27, an increase of more than $177 million, or 8.1%, from about $2.175 billion this year.

City Administrator Layne Groseth said the city expects to finish the current fiscal year in a favorable financial position. More money came into city coffers than expected. The expected amount of general fund revenue was $41.64 million, but it looks like it will be $42.66 million when the fiscal year ends on Oct. 1. That is about $1.01 million more than anticipated.

Sales tax accounts for much of the greater-than-expected increase. The 2025-26 budget projected $11.575 million in sales tax revenue, but it looks like it will add up to about $12.35 million — $775,000 more than projected — by Oct. 1.

At the same time, expenses are a little less than expected. The current-year general fund expenditures are now estimated to be $38.06 million, approximately $174,000 less than the $38.23 million that was budgeted.

Groseth said the better-than-expected financial performance should allow the city to add $400,000-$500,000 to its cash reserves, bringing the balance to approximately $17.6 million entering the 2026-27 fiscal year, well above the minimal amount of $13.3 million, which is 33% of the general fund budget.

The proposed general fund budget anticipates $44.23 million in revenue, with just less than $41 million in expenditures. Compared to the current-year budget, proposed spending would increase $2.77 million, or 7.2%.

Groseth said inflation, labor and insurance costs, increased service demands, unfunded mandates and capital needs are driving the increase in expenses.

Also, health insurance premiums are increasing by about 15% in two years. Most city employees are scheduled to receive a 3.5% cost-of-living adjustment, under four union agreements.

Other anticipated expenses include initial payments for two replacement ambulances, which were approved several years ago. Also, repairs and equipment are needed at the city’s transfer station. Both the facility and its equipment are aging.

Groseth also asked council members to consider allocating $585,000 from cash reserves for building repairs, including roofs and aging HVAC systems, plus about $320,000 to complete a fuel tank replacement.

Even with the $905,000 in additional spending, Groseth estimated the city would retain $16.7-16.8 million in cash reserves.

The city also is expected to dip into reserves to give future sales tax refunds related to Nebraska’s ImagiNE Act. Groseth said that could require about $3 million during the next 2.5 years.

The council did not ask many questions during the budget presentation. The budget will be published on Sept. 3 and return to the council for a public hearing on Sept. 9. A vote is expected on Sept. 15, after a public hearing on the proposed tax levy.

© 2026 The North Platte Bulletin. All rights reserved!