City Manager Tom Modica said broader economic conditions have strained the city’s finances. The report says lower utility tax collections, weaker-than-expected Measure LB revenue and rising operating costs have all contributed to the shortfall.
Modica is scheduled to present his proposed fiscal year 2027 budget on July 30. In an email to city employees, he said the spending plan will include “very difficult changes” for both residents and city staff as officials work to restore the city’s finances and rebuild reserve funds.