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Omaha City Council Hears Public Concerns Over 2026 Budget and Unchanged Property Tax Rate

Omaha City Council Hosts Public Hearing on Proposed 2026 Budget Amid Tax Concerns and Infrastructure Priorities

Omaha, Nebraska – The Omaha City Council held a pivotal public hearing on Tuesday evening to discuss the city's proposed budget for fiscal year 2026, drawing a mix of residents, business owners, and community advocates eager to voice their opinions on everything from property tax rates to public safety funding. The hearing, which took place at the Civic Auditorium, provided a platform for citizens to directly address council members about the $1.2 billion budget proposal put forward by Mayor Jean Stothert's administration. The budget outlines a comprehensive plan for city operations, capital improvements, and essential services, but it has sparked debate over its potential impact on taxpayers and the allocation of funds in a city grappling with growth and economic pressures.

At the heart of the discussion was the proposed property tax levy, which remains unchanged from the current year at 47.5 cents per $100 of assessed value. However, city officials emphasized that rising property valuations across Omaha could lead to higher tax bills for many homeowners, even without an increase in the levy rate. This point was a recurring theme during the hearing, with several speakers expressing frustration over what they described as "hidden tax hikes" driven by inflated assessments. One resident, a longtime homeowner from West Omaha, argued passionately that the budget fails to account for the financial strain on middle-class families already dealing with inflation and rising costs of living. "We're not seeing our services improve proportionally to what we're paying," she told the council, urging them to consider rebates or caps on assessments.

Mayor Stothert, who presented the budget earlier this month, defended the proposal by highlighting its focus on fiscal responsibility and key investments. The budget allocates significant funds to public safety, including $250 million for the Omaha Police Department and Fire Department combined. This includes funding for new equipment, additional officers, and enhanced training programs aimed at addressing rising crime rates in certain neighborhoods. Stothert pointed to recent statistics showing a decrease in violent crime but stressed the need for continued investment to maintain progress. "Public safety is our top priority," she stated in her opening remarks. "This budget ensures our first responders have the resources they need to keep our community safe."

Infrastructure improvements also featured prominently in the proposal, with over $150 million earmarked for road repairs, bridge maintenance, and park enhancements. Council members discussed plans to resurface major thoroughfares like Dodge Street and invest in flood control measures along the Missouri River, drawing from lessons learned during past flooding events. Several speakers from the business community praised these allocations, noting that better infrastructure could attract more economic development and jobs to the area. A representative from the Greater Omaha Chamber of Commerce highlighted how these investments could support the city's growing tech and logistics sectors, potentially boosting tourism and local revenue.

However, not all feedback was positive. Environmental advocates raised concerns about the budget's limited emphasis on sustainability initiatives. The proposal includes modest funding for green energy projects, such as expanding electric vehicle charging stations and tree-planting programs, but critics argued it falls short of addressing climate change aggressively. One activist from a local environmental group called for reallocating funds from road expansions to public transit improvements, suggesting that Omaha needs to prioritize reducing carbon emissions to meet long-term goals. "We're building for the future, but we're not thinking green enough," he said, prompting nods from a section of the audience.

Education and community services were another focal point. The budget proposes $80 million for library operations and youth programs, including expansions to after-school activities and community centers. Parents and educators who spoke at the hearing applauded these efforts but pushed for more, particularly in underserved areas like North and South Omaha. A teacher from a local public school shared stories of students benefiting from city-funded programs, emphasizing how they provide safe spaces and educational opportunities. Yet, some residents questioned the efficiency of these expenditures, asking for greater transparency on how funds are tracked and outcomes measured.

The hearing also touched on the city's pension obligations and employee compensation, with the budget setting aside $100 million for retirement funds to ensure long-term stability for city workers. Union representatives expressed support for this, but warned that without competitive wages, Omaha risks losing talent to neighboring cities. Council Member Aimee Melton, representing District 7, acknowledged these concerns, noting that the budget includes a 3% raise for most city employees to help retain staff amid a competitive job market.

As the evening progressed, the council heard from over 50 speakers, each allotted three minutes to share their views. The diverse crowd reflected Omaha's multifaceted community, with input from seniors worried about fixed incomes, young professionals advocating for affordable housing initiatives, and small business owners seeking relief from regulatory fees. One entrepreneur from the Old Market district proposed using budget surpluses—if any—to offer grants for local startups, arguing that fostering innovation could generate more tax revenue in the long run.

City Finance Director Stephen Curtiss provided additional context during the hearing, explaining that the budget is balanced without relying on new debt, thanks in part to increased sales tax revenues from recent economic growth. He projected a slight surplus by the end of 2026, which could be used for unexpected needs like natural disaster response. However, he cautioned that external factors, such as state-level changes to property tax laws or economic downturns, could necessitate adjustments.

The public hearing is a required step before the council votes on the budget, scheduled for late August. Council President Pete Festersen encouraged ongoing public input, reminding attendees that written comments could be submitted online or via mail. "This is your city, and your voices matter," he said, closing the session after nearly three hours of testimony.

Overall, the proposed 2026 budget represents a cautious approach to managing Omaha's finances amid uncertainty, balancing essential services with taxpayer concerns. While it avoids major tax increases, the reliance on property valuations has left some residents skeptical. As the council deliberates, the input from this hearing will likely influence final tweaks, aiming to create a plan that supports growth while addressing the needs of all Omahans. The budget's approval will set the tone for the city's priorities in the coming year, from safer streets to stronger communities. (Word count: 928)

Read the Full KETV Omaha Article at:
[ https://www.ketv.com/article/omaha-city-council-public-hearing-on-2026-budget/65671333 ]