Utilities Section
Newsletter League of Nebraska Municipalities
April 2026
Legislature raises municipal bidding thresholds By Lash Chaffin Utilities Section Director Effective July 18, 2026, the municipal bidding thresholds in Neb. Rev. Stat. 17-568.01 and 16-321 will be raised as a result of LB 797 adopted by the 2026 Legislature. There are 61 separate statutes dealing with municipal bidding, but the primary bidding statutes for Cities of the First Class, Cities of the Second Class, and Villages are embodied at Neb. Rev. Stat. 17-568.01 and 16-321. Omaha Sen. Terrell McKinney, on behalf of the Urban Affairs Committee, introduced LB 797 which would raise the thresholds in those statutes. The bid threshold will be raised from $30,000 to $90,000 on any contract entered into (a) for enlargement or general improvements, such as water extensions, sewers, public heating systems, bridges, work on streets, or any other work or improvement when the cost of such enlargement or improvement is assessed to the property, or (b) for the purchase of equipment used in the construction of such enlargement or general improvements. With respect to a municipal electric utility, the bidding threshold for the enlargement or improvement of the electric system or for the purchase of equipment used for such enlargement or improvement will be raised in the following amounts: • Municipal electric utilities 1335 L Street Lincoln, NE 68508 (402) 476-2829 info@lonm.org
with gross retail revenues of $1,000,000 or less – $30,000 raised to $90,000; • Municipal electric utilities with gross retail revenues between $1,000,001 and $5,000,000 – $60,000 raised to $180,000; • Municipal electric utilities with gross retail revenues between $5,000,001 and $10,000,000 – $90,000 raised to $250,000; • Municipal electric utilities with gross retail revenues between $10,000,001 and $20,000,000 – $100,000 raised to $300,000; • Municipal electric utilities with gross retail revenues between $20,000,001 and $30,000,000 – $100,000 raised to $500,000; • Municipal electric utilities with gross retail revenues between $30,000,001 and $75,000,000 – $100,000 raised to $750,000; and • Municipal electric utilities with gross retail revenues in excess of $75,000,000 – $100,000 raised to $1,000,000. The advertisement for bids needs to be published one time at least seven days prior to the bid closing in a legal newspaper in or of general circulation in the city or village. Advertising for bids may be waived in the emergency ordinance authorized by section 17-613 when
2026
LEGISLATIVE SESSION adopted by a three-fourths vote of the city council or village board of trustees and entered of record. The Legislature also adopted LB 1108 which raises the bidding threshold for interlocal entities that generate electricity. There is a current procurement statute that ONLY applies to joint entities formed under the Interlocal Cooperation Act that generate electricity. The ONLY entity formed in that manner appears to be a joint entity formed under the Interlocal Cooperation Act comprised of the City of Hastings, the City of Grand Island, the City of Nebraska City, the Municipal Energy Agency of Nebraska, and a rural electric cooperative in South Dakota. This joint public entity owns the Whelan II electric generation facility in Hastings. The current bid threshold for this type of entity is $100,000. Effective July 18, 2026, the bid threshold will be raised to mirror the bidding thresholds in Neb. Rev. Stat. 70637 for public power districts of $750,000 or $1,000,000 depending on the size of the district. Continued on page 3 Lash Chaffin Utilities Section Director Jackson Sash Utilities Field Representative