By Allison Peck
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The City of Ogallala has approved its budget for the 2026-27 fiscal year, with capital improvement projects accounting for much of the increase in the city's overall budget.
City Manager Tell Jensen says the larger budget does not necessarily mean a significant increase in everyday operating costs. Instead, much of the increase is tied to capital improvement projects, with state and federal grants providing funding for many of those projects rather than local property tax dollars.
One of the changes residents will see is a reduction in the city's property tax levy, which will decrease from 38 cents to 36.6 cents.
The city's FY 2026-27 property tax request was set at approximately $1.917 million, compared with about $1.865 million previously. Jensen said the request remained within the city's allowable growth range.
The budget process included multiple public workshops before Tuesday night's public hearing, giving residents opportunities to raise questions and concerns ahead of the final vote. The 7 p.m. meeting was specifically scheduled as a public hearing on the proposed FY 2026-27 budget statement.
Capital improvements will be a significant focus during the new fiscal year. Jensen said approximately $900,000 is budgeted for capital improvements, including street repairs around Ogallala.
Wastewater treatment plant improvements are also moving forward. The city is updating its agreement with JEO Consulting Group as it moves closer to determining the final scope of the project. Jensen said the project stems from a 2024 wastewater treatment plant analysis and consent order, and the city is working through the planning stages while also looking to maximize state revolving funds.
The Ogallala Municipal Airport is another major project on the city's list. Jensen said the airport is expected to see reconstruction work on the runway, including an additional six inches of concrete, along with improvements to taxiway lighting.
The city is also continuing its search for a fixed-base operator at the airport. Jensen said several entities have expressed interest, although no operator has been selected.
The council also finalized a new ordinance governing mobile food vendors. Jensen said the city has worked with mobile food vendors throughout the process and made changes based on feedback.
The annual permit fee was reduced from a proposed $50 to $35, while implementation of the ordinance was pushed to January 1, 2027. Jensen said the ordinance is intended to give the city a way to keep track of mobile food vendors operating in Ogallala while not unnecessarily restricting the businesses.
Before the budget hearing, the council held a special meeting to consider a contract with FR Customs LLC for the upfit of a 2026 Dodge Durango police vehicle. Jensen said the approximately $17,000 upfit includes specialized equipment needed for the police vehicle, including radio equipment.
Jensen said the special meeting was held because one of the owners of FR Customs has affiliations with the city. He said the city wanted to handle the matter separately in the interest of transparency and to ensure the city was following state requirements.
Other items considered during the regular meeting included the FY 2026-27 property tax request, administration salary ranges, a special fee list, the wastewater engineering agreement and a final plat for a three-tract subdivision.
With the new fiscal year's budget approved, Jensen said the city can now turn its attention toward the projects and priorities planned for the coming year.