OGALLALA, Neb. — Ogallala City Council this week approved a $28 million city budget, with nearly half of that tied to major capital projects, including long-delayed wastewater treatment upgrades.
Council member Kevin Wilkins said the operating budget is about $14 million, with another $11–12 million set aside for capital expenditures. A key focus remains the city’s wastewater treatment plant, which has been under state consent orders for repairs. Engineering analysis originally placed the needed work at $30 million, but the city has reduced that estimate to around $11 million.
“We’re waiting on federal loan funds funneled through the state,” Wilkins said. “We can’t spend it if we don’t budget it, but right now the state isn’t releasing that money to local communities.”
The wastewater project is among the most expensive in city history. Officials said securing the federal financing will be crucial to move it forward without forcing dramatic tax hikes.
To balance the overall budget, the council voted to raise the property tax levy from 34 to 38 cents, adding about $200,000 in revenue. Property tax collections will now account for roughly $1.8 million of the city’s general fund.
Wilkins pointed to the city’s strong reserves as a cushion against uncertainty. “That keeps us at about four to five months of reserves, which is what auditors recommend,” he said.
Other council actions included reappointing Steve Krause to the Community Redevelopment Authority, approving licenses for local contractors, and adopting sewer rate increases while leaving water rates unchanged. Hangar rental fees at the city airport will also gradually increase to better reflect market value.
Reports from city staff highlighted ongoing success with nuisance abatement, with just a handful of properties flagged this year. The Housing Authority reported a vacancy rate under 2 percent and a long waiting list for income-based housing, underscoring the need for more affordable units.
The council also heard an update from Nebraska Public Power District, which has not raised rates in more than a decade but cautioned that modest increases are likely in the near future as costs climb.
Wilkins said Ogallala is in a stronger position than many Nebraska communities thanks to partnerships with organizations like the YMCA and innovative strategies such as contracting wastewater management. “We’re growing responsibly while preserving what makes Ogallala, Ogallala,” he said.