By Tracy Overstreet
tracy.overstreet@theindependent.com

The city council is holding a budget and goal-setting retreat. It starts at 5 p.m. at the Grand Island Public Library and is open to the public.

A discussion specific to the State Fair is scheduled from 7:30 to 8 p.m. It will include talk about how to come up with Grand Island's $8.5 million share to move the State Fair to Fonner Park by 2010.

City Administrator Jeff Pederson said issuing $5 million in bonds has been suggested by State Fair supporters.

"This update does not necessarily mean that the city would be issuing bonds," Pederson said. "The council obviously wants to stay abreast of any discussions that are being held with respect to the $8.5 million."

If a bond were issued, Pederson said there has been recent talk that the motel/hotel occupation tax could be raised to make the bond payments.

"An increase in the occupational tax would be of interest to the city even if we weren't the ones to put the increase in it could be either city or county," Pederson said.

But a tax increase from any government entity needs to be considered by the city, he said.

"It becomes part of the overall tax burden for the community, so any of the taxing jurisdictions that are currently part of the mix would have an interest in knowing what might be coming about in terms of adjustments of those tax rates," Pederson said.

Besides the possible bond and occupation tax, Pederson said State Fair supporters would like Stolley Park Road widened as a south entrance into the Fonner Park grounds.

The widening of Stolley Park from South Locust to the Fonner entrance is a $1.4 million project the city had planned for fiscal year 2010-11, but could accelerate, he said.

Pederson said the city also needs to complete the northbound lanes on South Locust Street from the Interstate 80 interchange. Those lanes have a total cost of $4.2 million.

City Finance Director Dave Springer advised the council that the current budget for capital projects is $14.8 million to 2009 and $11.7 million for 2010. The anticipation now is those amounts need to be pared in half in order to meet other budget challenges.

Cash reserves are about $4 million and need to be raised to a range of $5 million to $6 million.

Sales tax revenues are expected to bring in an additional $675,000, but rising personnel expenses are expected to cost nearly $800,000 more.

"Revenues are not keeping up with personnel costs, let alone other operating," the council budget outline stated.

Following the budget review and State Fair discussion, the council will be asked to suggest goals for the coming year.