KEARNEY, Neb. - Kearney has officially approved its budget for the 2025–26 fiscal year, and it includes increases to both the property tax levy and the overall city budget.

City leaders cite rising costs, new services and public safety projects as the main reasons for the increase.

So what does this mean for residents? The total city budget for the upcoming year is $141 million, up from $132 million last year.

City leaders say the increase is part of responsible long-term planning as Kearney continues to grow.

“We’re now allowed to take new growth, any new construction added to the community, and we’re also allowed an inflation factor with the budget. So we’re capitalizing on both in order to cover our general operating costs, which continue to increase. We face the same cost pressures as homeowners and business owners,” said City Manager Brenda Jensen.

The total property tax rate, which combines the general and bond fund levies, will be about 18.2 cents per $100 of property value.

For a family that owns a $200,000 home, that adds around $66 more per year in city property taxes under the new rate.

Where is the new money going? Several major projects are included in this year’s budget.

The biggest one is the building of Fire Station #3, to be located in Northeast Kearney where significant growth has occurred.

Other large budget items include operating the new Kearney Sportsplex for a full year, rebuilding parts of the airport apron, expanding infrastructure to support business growth and street improvements.

The new tax levy takes effect October 1, when the fiscal year officially begins.