City Council Sets 26-27 Budget, Approves Data Center Limits, Begins In-town Livestock Discussion

The Broken Bow City Council held extended sessions on Tuesday, September 8. Kicking off with the final public hearing before establishing the 2026-2027 budget starting at 4:30 PM, and continuing with the regular City Council session starting at 5:15 PM. All members of the Council were present for the meetings held in the Council Chambers in the Broken Bow Municipal Building.

City Budget Set in Meetings for 2026 – 2027

An ongoing theme of the afternoon meetings was that while the preparation for setting the budget for the upcoming year was extensive, overall the planning process went more smoothly this year than in years past.

With an overall planned budget of $27,305,191.84, the City plans to ask Broken Bow tax payers for a total of $1,161,857.56, about a $20,000 increase from the prior tax year. However, the overall tax levy shows a 2% decrease over last year, due to changes in the taxable property base.

Bob Meyer of RJ Meyer & Associates, a financial services firm out of North Platte that provides assistance and guidance to the City on budgeting issues presented the numbers, along with an independent report on the City’s financial position, noting that the past year showed a fiscally conservative approach, with the City only spending where needed, and not overpaying on its requirements.

Following the Budget Hearing, the Council approved several measures putting Budget into effect. These included ordinances adopting the budget as presented, along with the tax ask.

The Council also approved the pay scale for city workers, including a 3% to 3.5% pay raise to city workers tied to a cost of living adjustment. Pay raises were also approved for the Mayor, City Council President City, and Council Members, who will be paid $10,000, $6,000 and $5,000, respectively.

The pay raises will go into effect for the first session following the November elections, meaning the council may have approved a pay raise for an opponent running against them. According to City Administrator Dave Schmidt, this places the city at the median for similar communities. The last time a pay raise was approved for the council and mayor was in 2022.

Other budgeting tasks included updates to how the City Utilities Clerk is paid from City and City Utilities funds, establishing a new Administrative Assistant position, closed an unused account at Bruning Bank, and approved the One- and Six-Year Street Plan, required for state funding purposes.

City Administration Provides Report

Continuing with the ongoing reports from city offices from prior sessions, the City Administration provided an update on its past and ongoing activities. Schmidt highlighted the budgeting discussions concluded at the meeting, along with other projects.

Schmidt told those assembled that work to replace the power plant is moving forward, with two bids received for construction work. Schmidt indicated a Bond is under discussion to pay for the work, along with funding from the Municipal Energy Agency of Nebraska (MEAN), and discussions with Nebraska’s legislators on options for federal funding.

City capital construction projects (Click to enlarge)

Schmidt also discussed the variety of capital construction projects currently being tracked by the city with only a study of drainage in the southeast part of the city and a project to connect the new Eagle Crest subdivision to the fairgrounds sewer system actually behind schedule. One item on the sewer project – approval of an easement allowing for the construction was completed later in the meeting.

The ongoing flood mitigation project along Mud Creek through downtown Broken Bow is also ongoing. The City is partnering with the Lower Loup NRD, with the NRD bringing $47,840 to help with the planning project. A stakeholder meeting to further address issues will be held in early October.

Data Center Limits Approved, Livestock Rules Up for Discussion

The required three readings of Ordinance 1317 was completed at Tuesday’s meeting. The new rules will provide strict limits on the construction of data centers within Broken Bow, including requirements for noise studies and limits, water use restrictions and power demand limits, among several other requirements. The Council unanimously approved the ordinance.

Following concerns raised about nuisance livestock in town, the Council opened a public discussion on possible rules for animals within city limits. After review and drafting by Schmidt and City Attorney Jason White, the proposed ordinance would create a prohibition on most livestock in Broken Bow.

White acknowledged that Broken Bow is at the center of a livestock-producing county. Exceptions are made for existing livestock processing facilities, animals being raised for 4-H and FFA projects, and a flock of up to 6 chickens or ducks, but no roosters.

Properties with existing livestock may be grandfathered in as well, provided the animals do not create a nuisance with noise or waste. The council discussed additional provisions to be added, such as the ability to transfer a property with grandfathered livestock to a new purchaser, as well as the ability to request a new exception to the ordinance.

Backyard flocks, project livestock and grandfathered livestock will need to be registered with the City under the proposed rules. The Council looks to continue this discussion with concerned citizens at the next meeting as well, before beginning formal consideration of an ordinance, likely in October.

At the end of the meeting, Mayor Rod Sonnichsen again thanked the council and particularly commended the city staff for their work on the 2026 -27 city budget. With no further business before the council, the meeting adjourned at 6:30 PM. The next regular meeting of the Broken Bow City Council is scheduled for September 22 at 6:00 PM in the Broken Bow Municipal Building.

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