Cost of living rising in Nebraska City
City's tax valuation rises by $77 million, but property tax asking is $29,000 more
NEBRASKA CITY - The Nebraska City City Council approved pay increases for city employees and new water and electric rates at its Sept. 5 meeting that will combine with an increased utility transfer to increase the cost of living in the city.
City commissioners approved an increase in the utility transfer fee this summer by 1.25 percent, which is intended to raise $180,000 a year to support infrastructure at the city’s housing development near the old Grundman Airfield property.
In addition to the transfer fee, Utilities Manager Jeff Kohrs said Sept. 5 that new water rates will cost the average customer $3.74 more per month and cost for the average electric customer will rise $3.39 per month.
At the Sept. 5 meeting, city commissioners approved a new wage scale for employees. City Administrator Perry Mader said the wages include a federal cost of living adjustment of 4 percent, with other wages trending higher based on a recent wage study.

The wage study showed the starting wage for a Nebraska City police officer was lagging behind peer communities. Falls City was paying $29 an hour and Wayne was paying nearly $23 per hour, while Nebraska City was paying about $21 an hour.
Under a new agreement with the Fraternal Order of Police, an officer at Nebraska City will start out at nearly $27 an hour.
Nebraska City has been notified of a tax valuation increase from $404 million to $481 million, but the $77 million increase has little effect on the city’s property tax asking. The proposed budget is asking for $29,000 more in property taxes.
At its Sept. 5 meeting, city commissioners authorized themselves an additional 1 percent spending authority over the state-imposed lid.
The city budgeted $2.1 million in sales tax collections this year and is projecting actual collections this year at $2.6 million.
