Stothert Introduces Proposed Budget, Facilities Plan
Omaha Mayor Jean Stothert presented a general fund budget to the City Council this week that includes a 2% property tax rate reduction.
The proposal would again defer the voter-authorized levy increase that Stothert campaigned for in 2020 to pay for systematic street repairs that promises to finally address Omaha’s perennial pothole problems.
Stothert said in a news release Tuesday that the tax cut would be the third since 2015 and would represent “significant property tax relief.”
“This budget focuses on recovery, reinvestment, and rebuilding from the COVID-19 pandemic,” she said. “Many of our citizens have experienced financial hardship over the last 16 months, others have been surprised by unexpected and significant increases in the valuation of their property. I believe we should lower the property tax rate whenever we can.”
The 2022 city levy would be 46.922 cents per $100 of valuation, which translate to about $704 for a home valued at $150,000.
The $456 million general fund budget would grow about 3.5%. The all fund budget of $1.2 billion would represent a slight reduction. The city’s reserve funds would grow to $37.9 million under the mayor’s proposal.
“The economic turbulence of the pandemic has demonstrated the need to better prepare for emergencies that impact our city finances so severely,” Stothert said. “The best way to safeguard our budget is to build up our cash reserves and use our savings accounts only when needed.”
Stothert also introduced a recommended 2022-27 Capital Improvement Program, which includes $540 million in transportation projects, a new fire station in northwest Omaha, construction of the “Baby Bob” pedestrian bridge in the riverfront and completion of the Keystone Trail.
“The Capital Improvement Program identifies current and long-term priorities in public safety, transportation and economic development,” Stothert said. “Managing these investments is one of the most critical responsibilities we have at City Hall.”
In the news release announcing the proposals, the Mayor’s Office highlighted several aspects of the budget:
• Omaha Police Department budget increases 3.25% to $169.9 million. The budget retains the number of sworn officers at 906. The recruit class training now will graduate in October 2021. A second recruit class will begin before the end of this year.
• Omaha Fire Department General Fund budget increases 4% to $120.7 million. The budget increases the number of sworn to 664, six positions added to staff Medic 2, which was reinstated in April to serve downtown Omaha. A recruit class will begin in November 2021.
• Increase street resurfacing budget to $17 million, plus $31.9 million in street preservation projects.
• Increase Convention and Visitors Bureau budget 11.2% to $2 million to focus on restoring the travel, tourism and hospitality industry.
• Add 28 employees in Public Works Department for construction, sewer maintenance, traffic engineering, water resource recovery, and parking and mobility.
• Add two additional housing inspectors for the Rental Registry Program.
• Maintain financial commitments to employment and job training programs: Step-Up, Way to Work, Heartland Workforce Solutions and Latino Center, plus new funding for Symphony Workforce and Jet Scholarship.
• Qualifying community service programs that support Mayor Stothert’s strategic priorities including public safety, pandemic recovery, youth services, and neighborhood improvement. Programs offering mental health services will also be funded in 2022.
The city is estimating sales tax revenue will increase 6.2% to $191.2 million. Property tax revenue is projected to grow nearly 1.9% to $196.1 million. The restaurant tax is estimated to grow 1.6% to $35.9 million.
The 2020 budget has a carryover of $8 million.
On the expense side of the ledger, health care costs are growing 4% to $71.3 million. The cost for solid waste is up 7.8% to about $34.7 million due to the significant increase in curbside recycling and processing costs as well as the larger than expected number of households receiving additional carts at no cost due to size of family.
Stothert’s full proposed budget can be found at finance.cityofomaha.org/images/Finance/Budget/2022/2022_Recommended_Budget.pdf.
The full proposed Capitial Improvement Plan can be found at planning.cityofomaha.org/capital-improvement-program.
The City Council will hold a public hearing on the budget and CIP on Aug. 3 at 6:30 p.m. in the Legislative Chambers of the Omaha-Douglas Civic Center, 1819 Farnam St. in downtown Omaha.
User login
Omaha Daily Record
The Daily Record
222 South 72nd Street, Suite 302
Omaha, Nebraska
68114
United States
Tele (402) 345-1303
Fax (402) 345-2351