Nebraska Municipal Review, August 2025 by League of Nebraska Municipalities

NEBRASKA MUNICIPAL

David City reopens museum in new location

National Night Out photos from across the state

REVIEW Official Publication of the League of Nebraska Municipalities

Roundup of Supreme Court decisions impacting municipalities

AUGUST 2025

NEBRASKA MUNICIPAL REVIEW

Issue No. 1,204

The NEBRASKA MUNICIPAL REVIEW (ISSN 0028–1906) is published monthly and the official publication of the League of Nebraska Municipalities, an association of the cities and villages of Nebraska, published at 1335 L St., Lincoln, Nebraska 68508. Subscription rates are $5 per single copy — $50 plus tax for 12 issues. Periodicals postage paid at Lincoln, Nebraska. Views of contributors, solicited or unsolicited, are their own and not to be construed as having the endorsement of the League unless specifically and explicitly stated by the publisher

The NEBRASKA MUNICIPAL REVIEW is a nonprofit publication administered and supervised by the League of Nebraska Municipalities. All revenue derived from the publication is used by the association to defray publication costs.

League of NE Municipalities staff 402-476-2829 • www.lonm.org

L. Lynn Rex, Executive Director

Christy Abraham, Legal Counsel

Lash Chaffin, Utilities Section Director

Cherie DeFreece, Admin Assistant/ Membership Services Assistant

Brenda Henning, Membership Services Assistant/ LIGHT Admin Assistant

Ethan Nguyen, LNM/LARM Information Technology Manager

Shirley Riley, Membership Services Director

Jackson Sash, Utilities Field Representative/Training Coordinator

Ashley Wolfe, Marketing/Communications Director

LARM staff

Dave Bos, Executive Director

Tracy Juranek, Asst. Executive Director, Customer Service Specialist

Diane Becker, Communications/Marketing Director

Kyla Brockevelt, Executive Administrative Assistant

Drew Cook, Customer Service Specialist

John Hobbs, Loss Control Specialist

James Kelley, Loss Control Specialist

Fred Wiebelhaus, Loss Control/Claims Manager

POSTMASTER: SEND ADDRESS CHANGES TO NEBRASKA MUNICIPAL REVIEW, 1335 L STREET, LINCOLN, NEBRASKA 68508.

Have an idea, project or opinion to share? The League welcomes member articles, information, and op-eds.

Want to reach local decision makers? The League can help you get your message out to Nebraska’s 3,500+ municipal officials.To learn more, contact Ashley Wolfe at 402-476-2829 or ashleyw@lonm.org

President Marlin Seeman, Mayor, Aurora

President-Elect Bryan Bequette, Mayor, Nebraska City

Vice President Joey Spellerberg, Mayor, Fremont Past President Deb VanMatre, Former Mayor, Gibbon

Directors

Leirion Gaylor Baird

What's inside?

National Night Out 18

Features

Like Lincoln’s first woman mayor, Gaylor Baird in line to lead national mayor’s advocacy group

Nebraska Department of Water, Energy, and Environment awards $15.6 million in Grid Resiliency Program grants

How to avoid costly employee benefit plan mistakes - Part 1: Stipends

Make your municipal dollars go further with surplus property with DAS and GovDeals

AI in state and local government - Part 1

David City museum reopens in newly-renovated location

Nebraska Game & Parks – Celebrations! When is yours?

FEMA announces nearly $1 billion in federal funding to help states manage disaster preparedness

U.S. Supreme Court – Decisions important to local government

Columns In each issue

The Director's Message - L. Lynn Rex, LNM Executive DirectorCongratulations to Lincoln Mayor Leirion Gaylor Baird recently elected as Second Vice President of the U.S. Conference of Mayors

LARM – Scams in Nebraska municipalities

The Legal Corner by Tara Stingley, Cline Williams Wright Johnson & Oldfather, L.L.P. - Vacation leave: can you really “lose it” if you don’t “use it”?

Mayor, Lincoln

Sharon Powell Village Board President, Utica

Jim Bulkley Mayor, Columbus

Betsy Vidlak Mayor, Scottsbluff

David Black

Mayor, Papillion

Larry Evans Mayor, Minden

Rod Petersen Mayor, Louisville

John W. Ewing, Jr. Mayor, Omaha

David Scott City Manager, Sidney

Janine K. Schmidt CMC/Treasurer, Morrill

Layne Groseth City Administrator/Utilities Manager, North Platte

Affiliated Sections

City Managers

Clerks

Munic. Accounting & Finance

Fire Chiefs

Vacant

Tami L. Comte, David City

Becky Erdkamp, Exeter

Dennis Thompson, North Platte

Utilities Pat Heath, Gering

On the cover

Photo of the fireworks over the City of Lincoln skyline from July 3, 2025. Photo by Josh Wolfe.

Larger Cities Legislative Committee

John McGhehey, Mayor, Alliance

Seth Sorensen City Manager, Alliance

Tobias Tempelmeyer City Administrator, Beatrice

Rusty Hike, Mayor, Bellevue

Jim Ristow, City Administrator, Bellevue

Mindy Rump, Mayor, Blair

Phil Green, City Administrator, Blair

Tom Menke, City Manager, Chadron

Jim Bulkley, Mayor, Columbus

Tara Vasicek, City Administrator, Columbus

Dave Bauer, Mayor Crete

Tom Ourada, City Administrator, Crete

Joey Spellerberg, Mayor, Fremont

Jody Sanders, City Administrator, Fremont

Kent Ewing, Mayor, Gering

Pat Heath, City Administrator, Gering

Roger Steel, Mayor, Grand Island

Laura McAloon, City Administrator, Grand Island

Mike Evans, Mayor, Gretna

Paula Dennison, City Administrator, Gretna

Mark Funkey, City Administrator, Hastings

James Liffrig, Mayor, Holdrege

Chris Rector, City Administrator, Holdrege

Brenda Jensen, City Manager, Kearney

Brad DeMers, Asst. City Manager, Kearney

Doug Kindig, Mayor, La Vista

Kevin Pokorny, Director of Administrative Services, La Vista

John Fagot, Mayor, Lexington

Joe Pepplitsch, City Manager, Lexington

Margaret Blatchford, Assistant City Attorney, Lincoln

Riley Slezak, Senior Advisor to the Mayor, Lincoln

Linda Taylor, Mayor, McCook

Nate Schneider, City Manager, McCook

Bryan Bequette, Mayor, Nebraska City

Perry Mader, City Administrator, Nebraska City

Justin Webb Council Member, Norfolk

Scott Cordes, City Administrator, Norfolk

Brandon Kelliher, Mayor, North Platte

Layne Groseth, City Admin./Utilities Manager, North Platte

Steve Krajewski, Mayor, Ogallala

Kevin Wilkins, City Manager, Ogallala

Thomas Warren, Chief of Staff, Omaha

David Black, Mayor, Papillion

Amber Powers, City Administrator, Papillion

R. Paul Lambert, Mayor, Plattsmouth

Emily Bausch, City Administrator, Plattsmouth

Don Groesser, Mayor, Ralston

Brian Kavanaugh, Council Member, Ralston

Jack Cheloha City Administrator, Ralston

Art Lindberg, Mayor, Schuyler

Lora Johnson, City Administrator, Schuyler

Betsy Vidlak, Mayor, Scottsbluff

Kevin Spencer, City Manager, Scottsbluff

Joshua Eickmeier, Mayor, Seward

Greg Butcher, City Administrator, Seward

Brad Sherman, Mayor, Sidney

David Scott, City Manager, Sidney

Lance Hedquist, City Administrator, South Sioux City

Jill Brodersen, Mayor, Wayne

Wes Blecke, City Administrator, Wayne

Barry Redfern, Mayor, York

Dr. Sue Crawford, City Administrator, York

Smaller Cities Legislative Committee

Chaired by Tom Goulette, City Administrator of West Point

Lisa Schroedl, City Administrator/Clerk/Treasurer, Ainsworth

Jessica Quady, City Administrator, Ashland

Crystal Dunekacke, City Administrator/Economic Developer, Auburn

Marlin Seeman, Mayor, Aurora

Adam Darbo, City Administrator, Aurora

Chris Anderson, City Administrator, Central City

Andrew Lee, Admin/Clerk/Treasurer, Curtis

Tami Comte, Clerk/Treasurer, David City

Alan Michl, Chairperson, Exeter

Becky Erdkamp, Clerk/Treasurer, Exeter

Kyle Svec, City Administrator, Geneva

Matt Smallcomb, City Administrator, Gibbon

Gary Greer, City Administrator, Gothenburg

Jana Tietjen, Clerk, Hebron

Barb Straub, Admin/Clerk/Treasurer, Hemingford

Kelly Oelke City Administrator, Hickman

Janine K. Schmidt, CMC/Treasurer, Morrill

Sandra Schendt, Clerk/Treasurer, Nelson

David Russell, Director of Gov. Affairs, NMPP Energy

Sandy Kruml, Clerk/Treasurer, Ord

Mike Feeken, Mayor, St. Paul

Sandra Foote, Council Member, Superior

Jeff Hofaker, City Administrator, Sutton

Jessica Meyer, City Administrator, Syracuse

Kelly Adamson, City Council Member, Tekamah

Sharon Powell, Village Board President, Utica

Kyle Arganbright, Mayor, Valentine

Melissa Harrell, City Administrator, Wahoo

Desiree Soloman, City Attorney, Waterloo

Stephanie Fisher, City Administrator, Waverly

Tom Goulette, City Admin./Utility Superintendent, West Point

Randy Woldt Utilities Superintendent, Wisner

Robert Costa, Community Planner, Yutan

Municipal Legal Calendar

(All statute citations to Revised Statutes of Nebraska)

OCTOBER 2025

CITIES OF THE FIRST CLASS

• Within 10 days following meeting or before next meeting (whichever is sooner) Clerk to have minutes available for public inspection. (84-1413)

• Within 15 days of Passage Clerk publishes ordinances passed. (16-405)

• Within 30 days of Council meeting Clerk publishes official proceedings of meeting including claims. (19-1102)

• First Day Fiscal year begins. (16-701)

• After start of fiscal year Treasurer makes annual report to Mayor and Council. (16-720)

• Oct. 9 A vote to exceed levy limits must be approved by this date (77-3444)

• Oct. 15 Final Property Tax Request Certified and forwarded to County Clerk. (77-1632)

• Oct. 31 Annual Certification of Program Compliance filed with the Board of Public Roads Classifications and Standards (39-2121)

• Within 20 days after end of month Treasurer files monthly financial report. (16-318)

• Within 60 days after close of fiscal year Treasurer publishes Statement of Receipts and Disbursements. /Semi-annual financial statement published. (16-318) (16-722) (19-1101)

• * * Clerk must prepare agenda prior to next Council meeting. (84-1411)

• Within six months after close of fiscal year Audit of city’s accounts completed. (19-2903)

CITIES OF THE SECOND CLASS

• Within 10 days following meeting or before next meeting (whichever is sooner) Clerk to have minutes available for public inspections. (84-1413)

• Within 15 days of Passage Clerk publishes ordinances passed. (17-613)

• Within 30 days of Council meeting Clerk publishes official proceedings of meeting including claims. (19-1102)

• First Day Fiscal year begins. (17-701)

• Oct. 9 A vote to exceed levy limits must be approved by this date (77-3444)

• Oct. 15 Final Property Tax Request Certified and forwarded to County Clerk. (77-1632)

• Oct. 31 Annual Certification of Program Compliance filed with the Board of Public Roads and Classification and Standards (39-2121)

• Within 20 days after end of month Treasurer files monthly financial report. (17-606)

• Within 60 days after close of Fiscal Year Treasurer publishes Statement of Receipts and Disbursements. (17-606) (191101)

• * * Clerk must prepare agenda prior to next Council meeting. (84-1411)

• Within six months after close of fiscal year Audit of city’s accounts completed. (19-2903)

VILLAGES

• Within 10 days following meeting or before next meeting (whichever is sooner) Clerk to have minutes available for public inspections. (84-1413)

• Within 15 days of Passage Clerk publishes ordinances passed. (17-613)

• Within 30 days of Board of Trustees’ meeting Clerk publishes official proceedings of meeting including claims. (19-1102)

• First day Fiscal year commences. (17-701)

• Oct. 9 A vote to exceed levy limits by election or by townhall meeting must be approved by this date (77-3444)

• Oct. 15 Final Property Tax Request Certified and forwarded to County Clerk. (77-1632)

• Oct. 31 Annual Certification of Program Compliance filed with the Board of Public Roads and Classification and Standards (39-2121)

• Within 20 days after end of month Treasurer files monthly financial report. (17-606)

• Within 60 days after close of Fiscal Year Treasurer publishes Statement of Receipts and Disbursements. (17-606) (191101)

• * * Clerk must prepare agenda prior to next Board meeting. (84-1411)

• Within six months after close of fiscal year Audit of Village’s accounts completed unless audit requirement waived by State Auditor. (19-2903) (84-304)

ALL MUNICIPALITIES

• On or before November 1 Each municipality which offers a defined benefit plan pursuant to section 401(a) of the Internal Revenue Code which was open to new members on January 1, 2004, shall submit written notification to the Nebraska Retirement Systems Committee of the Legislature that it offers such a plan. (13-2402)

• October 15 Each municipality that offers such a defined benefit retirement plan shall file with the committee a copy of the most recent annual actuarial valuation of the retirement plan. The valuation report shall be filed electronically. (13-2402)

• October 15 Each municipality that offers such a defined benefit retirement plan shall file a report with the committee if either of the following conditions exists as of the latest annual actuarial valuation of the retirement plan: (i) The contributions do not equal the actuarial requirement for funding; or (ii) the funded ratio is less than eighty percent. (132402)

• October 15 Each municipality which offers such a defined benefit plan shall conduct an experience study at least once every four years to review the actuarial assumptions used to determine funding needs for its defined benefit plan. Each such political subdivision shall electronically file a copy of the most recent actuarial experience study with the committee by October 15, 2016, and shall electronically file a copy of each study completed pursuant to this subsection by the next October 15 after completion of the study (13-2402)

Chaired by Mayor Don Groesser of Ralston

Congratulations to Lincoln Mayor Leirion

Gaylor Baird recently elected as Second Vice President of the U.S. Conference of Mayors, positioned to become President in 2027!

BY L. LYNN REX, EXECUTIVE DIRECTOR, LNM

Mayor Leirion Gaylor Baird’s recent election as Second Vice President to the U.S. Conference of Mayors (USCM) is a tremendous and well-deserved honor for her as well as the City of Lincoln and the State of Nebraska! She is in line to be elected President of the USCM in 2027, becoming only the second Mayor from Nebraska to do so. Former Lincoln Mayor Helen Boosalis served as the 39th President of the USCM in 1981-82. Mayor Gaylor Baird has held several leadership roles within the USCM: vice chair and chair of the Mayors and Metro University Task Force; a member of the advisory board and trustee for the conference; and co-vice chair of a housing task force.

Mayor Leirion Gaylor Baird continues to provide outstanding leadership as Mayor of Lincoln while effectively advocating for all cities on the local, state, and national levels. She passionately represents the interests of the City of Lincoln and works hard to advance the priorities of cities across the country with a unified voice with the USCM on a wide variety of initiatives and funding opportunities. Mayor Gaylor Baird helps elected leaders in Congress, federal agencies, and department heads better understand the needs of cities, including, but certainly not limited to, those relating to affordable/workforce housing, infrastructure, Community Development Block Grants, and economic/ community development.

The USCM is a nonpartisan organization of municipalities with a population of 30,000 or more. In addition to advocacy, the USCM provides networking opportunities for Mayors through virtual and in-person meetings, webinars, and events. Members also are afforded access to resources to assist Mayors in telling

their city’s “story” to elevate their voice on a national level while promoting their local initiatives and projects. As underscored in the article on page 5, Mayor Gaylor Baird’s efforts educating federal officials on how the City of Lincoln implemented and leveraged federal grants resulted in even more federal dollars for the City of Lincoln. USCM collaborates with the National League of Cities, National Association of County Officials, and other national organizations representing the interests of local governments.

Mayor Gaylor Baird has also been a member of the Executive Board of the League of Nebraska Municipalities since becoming the Mayor of Lincoln in 2019. She provides excellent guidance and makes significant contributions during policy discussions regarding the League’s legislative initiatives, strategies, and positions on bills.

Before becoming Mayor, she served on the Lincoln and Lancaster County Planning Commission and then served as an at-large Lincoln City Council Member for six years. She has received numerous awards and recognition for her exceptional servant leadership, including the Inspire Award for Excellence in Government Service in 2016 and was one of 24 state and local elected officials from across the United States to receive the Rodel Fellowship in Public Leadership from the Aspen Institute.

Following graduation from Yale University, Mayor Gaylor Baird was a management consultant for Fortune 500 companies. She also has extensive experience as a city budget and policy analyst and served as director of a Boys and Girls Club working to improve educational outcomes for kids from low-income families. Mayor Gaylor Baird and her husband, Scott, have three children.

Like Lincoln’s first woman mayor, Gaylor Baird in line to lead national mayor’s advocacy group

BY MARGARET REIST, LINCOLN JOURNAL STAR

This is a story about creating a legacy, and how that legacy is playing out in Lincoln. It’s about women’s role in politics and how decades ago, a Lincoln woman set the groundwork for what’s playing out today — from the mayor’s office in Lincoln to the nation’s capital.

Leirion Gaylor Baird was still a child growing up in Portland, Oregon, when Helen Boosalis became the first woman elected Lincoln’s mayor, and then, in 1981, to become the first woman elected president of a national organization that lobbies for cities across the country on Capitol Hill.

Gaylor Baird became Lincoln’s s third woman mayor four decades later — and is now in line to be president of that national organization, the U.S. Conference of Mayors.

Earlier this summer she was elected second vice president of the conference, an organization of leaders of more than 1,400 cities with populations of 30,000 or more, which advocates for cities’ interests to the administration and Congress.

As such, Gaylor Baird will be the ninth woman to lead the conference, the second Lincoln mayor to hold the

position — and Lincoln will become just the 19th city to have a mayor elected president more than once in the organization’s 93-year history.

Gaylor Baird sees the work Boosalis did as president and wants to do the same.

“She made you realize the opportunities that are out there, the possibilities and the opportunities that are out there to do good work and deliver real, meaningful results for the people you serve.”

A chance meeting

Gaylor Baird moved to Lincoln in 2002 and by 2005, had become a member of a group of young women who called themselves the Democratic Divas of Nebraska.

Boosalis had attended one of their meetings and sometime

Continued on page 6 / See Gaylor Baird

Lincoln Mayor Leirion Gaylor Baird was recently elected second vice president to the U.S. Conference of Mayors, a position that puts her in line to be president in 2027. The organization advocates to the federal government on behalf of cities and, notably, she is only the second Lincoln mayor to serve in that position. Photo by Kenneth Ferriera, Journal Star

Gaylor Baird

Continued from page 5

later, Gaylor Baird and the Divas ran into Boosalis and her daughter, Beth Boosalis Davis, at the Green Gateau.

Boosalis Davis was writing a book about her mom’s career — including her race for governor against Kay Orr, the first governor’s race in the country between two women. Gaylor Baird told her that her mom was their group’s “absolute hero.”

Twenty years later, that hasn’t changed.

“She definitely continues to inspire me,”

Gaylor Baird said. “She was so focused on doing good work and delivering results for the people she serves.”

When Gaylor Baird was appointed to the Lincoln-Lancaster County Planning Commission in 2007, she got a note from Boosalis congratulating her.

“I was so struck by the fact that a person who ... had been out of office for years took the time to write a handwritten note to stress the importance of the work and the opportunities I had.”

When Gaylor Baird found out she’d been elected second vice president of the U.S. Conference of Mayors, she told her team in the mayor’s office and her family. Her next call was to Boosalis Davis, who lives in Evanston, Illinois.

Important role

The position is an important one, putting Gaylor Baird in line to lead an organization that helps elected leaders in Washington understand how what they do affects cities and the people who live there.

Lynn Rex, Executive Director of the League of Nebraska Municipalities, said the conference partners closely with several other local government organizations, including the National League of Cities and the National Association of County Officials, to advocate for local decision-making.

“It’s a really big deal,” Rex said. “What she does for the City of Lincoln is extremely important, and this puts her in a position on a national level ... to make sure those who govern most closely to the people have the ability to do that in the most effective manner.”

The conference was founded during the Great Depression, formalized the year after 29 mayors came together to successfully advocate Congress for relief in 1932.

Gaylor Baird said many cities share the same issues and the organization amplifies their collective voice.

“What the conference allows is, instead of being one raindrop you’ve got this collective river flowing to Congress saying, ‘This is what American cities need,’” she said. “So what’s kind of special about being in leadership is you get to kind of be the captain of the ship, pointing the conference in a particular direction of advocacy.”

In the last year, one of the conference’s major focuses was housing issues. The priorities during her term will be shaped by the moment, she said, but

In this Journal Star file photo from 2018, Mayoral candidate Leirion Gaylor Baird speaks during her formal campaign announcement at The Mill Coffee at Telegraph. Listening are Lincoln Board of Education Member Lanny Boswell (left) and current Mayor Chris Beutler.

Helen Boosalis

Gaylor Baird

Continued from page 6

housing, infrastructure, and economic opportunity are sure to be on the table.

Boosalis became president shortly after President Ronald Reagan took office and began making major cuts of federal dollars to cities, which she spent much of her tenure fighting against. That fight included efforts to keep the Community Development Block Grant program, which the Reagan administration wanted to change.

More than 40 years later, Gaylor Baird was part of a delegation from the conference that went to Washington to meet with key leaders on the Hill. Among the topics of discussion: arguing for community development block grants, which were on the chopping block in Trump’s budget bill. Ultimately the program survived.

“There’s a bunch of key issues, and we went to the Hill with a unified voice and real stories on the ground,” she said.

Telling Lincoln’s story

Being able to tell those stories is important for Lincoln, raising its visibility with the decisionmakers who determine where those federal dollars go, said Rick Hoppe, her chief of staff.

Typically, federal agency and department heads meet with the conference and with smaller groups of mayors. That’s given Gaylor Baird a chance to update them on what’s happening in Lincoln, on how they’ve implemented federal grants — showing how they’ve been good stewards of the money — and on those they will be applying for in the future.

Those conversations helped the city secure a $1 million grant to supplement the work the city is doing to replace lead pipes to homes, for instance, and a much smaller grant to help with workforce development, she said.

Advice from those department heads helped the city successfully apply for some much bigger grants, including a $23.6 million grant to build a new multimodal transportation center — a grant the city had applied for numerous times before being successful — and for a $66.7 million grant to transform the 33rd Street and Cornhusker Highway intersection by eliminating the at-grade railroad crossing.

“That’s almost $90 million of federal investment where we are directly interfacing and then telling our successes

at the conference, sharing that story,” Gaylor Baird said. “That’s good for departments to have their story of their investments told, but it’s also really good for Lincoln.”

U.S. Rep. Mike Flood said in a statement that Gaylor Baird’s leadership in the conference will “help elevate the priorities of Lincoln and cities across America.”

When Gaylor Baird becomes president, it will be during another administration that has slashed federal spending — and leading up to a presidential transition.

“There are going to be lots of things that are dynamic that year,” Gaylor Baird said. “And I think one of the reasons that I’m going to be in that role at that time is because I have great bipartisan relationships.”

Nonpartisan role

The conference, she said, is one of the last functional, effective bipartisan organizations and it works hard to advance the priorities of American cities, which are similar across the board.

“I often don’t know what someone’s political affiliation is, and it’s unclear from what they’re talking about, which is amazing,” she said. “I’m excited, in that moment when there’s a lot of potential for a lot of partisanship, to keep things calm and steady so we actually get things done for our home cities.”

David Holt, the newly elected president and mayor of Oklahoma City, said in a statement that Gaylor Baird is well-respected by her peers and fits well into the nonpartisan nature of the organization.

“The U.S. Conference of Mayors is an organization with a long history and a tremendous track record, and that success is built on a foundation of nonpartisanship that is increasingly unique in American politics,” he said. “Mayor Gaylor Baird fits right into that ethos, and she will be an outstanding face for our organization in two years.”

Gaylor Baird began attending meetings during her first term, and she said the relationships she and other mayors built were vital to navigating the pandemic.

The conference successfully lobbied Congress to provide direct aid to cities, which resulted in the American Rescue Plan Act — and about $46 million that came directly to Lincoln. When the act was signed on the White House lawn, the U.S. Conference of Mayors president was at the podium with other officials.

In her role with the conference, Gaylor Baird has served as vice chair and chair of the Mayors and Metro University Task Force, as a member of the advisory board and a trustee for the Continued on page 25 / See Gaylor Baird

NDOT announces funding availability for transportation needs

The Nebraska Department of Transportation (NDOT) has announced funds are now available to private non-profit organizations and governmental entities for transportation needs of seniors and individuals with disabilities for whom mass transportation services are unavailable, insufficient or inappropriate. Eligible applicants include private non-profit organizations incorporated within Nebraska and governmental entities. Governmental entities must certify that there are no non-profit agencies in the service area readily able to provide the service. Applications will only be accepted for rural and small urban areas, and Lincoln. Applicants in the Omaha area should contact MAPA for information about applications. Applications are restricted to the acquisition of transportation vehicles. Applications are due by October 31, 2025.

Additional information and applications can be obtained at dot.nebraska.gov/public-transit/ fundingapplications or by contacting Carly Grutel, Transit Programming and Reporting Lead at carly. grutel@nebraska.gov or 402-479-3185.

Source – NDOT

Register

Speaker John Arch, Sharon Powell, President of the Utica Village Board and League Executive Board Member, and Gov. Jim Pillen were among those in attendance at the 6 Regions One Nebraska Update at the Governor’s Summit in Kearney. Photo provided by Sharon Powell.

LEADERS GATHER IN KEARNEY

Nebraska Department of Water, Energy, and Environment awards $15.6 million in Grid Resiliency Program grants

The Nebraska Department of Water, Energy, and Environment (DWEE) has announced the award of over $15 million in grants to local communities to support critical infrastructure upgrades that will strengthen the reliability and resilience of Nebraska’s electric grid.

The grants are awarded through DWEE’s Grid Resiliency Grant Program, which received federal funds through the U.S. Department of Energy’s (DOE) Preventing Outages and Enhancing the Electric Grid/Hazard Hardening Program. The program is supported by the DOE’s Grid Deployment Office as part of a nationwide effort to modernize and secure the country’s energy infrastructure.

DWEE’s Grid Resiliency Grant Program is designed to help utilities improve the reliability of Nebraska’s electrical grid, enhance the grid’s resilience in the face of extreme weather and other hazards, and to improve systems’ ability to recover after disruptive events and attacks.

“Nebraskans rely on electricity every day in their homes, on their farms, and to run their businesses,” DWEE Director Jesse Bradley said. “That is why DWEE is proud to provide these grants that will help strengthen energy infrastructure so those customers can count on reliable electric service.”

Awarded projects include replacing old power poles and transformers, improving substations, installing stronger and more efficient transmission lines, and using new technology to better monitor and manage the flow of electricity. Some projects will also move power lines underground to reduce the risk of outages.

Each community receiving funding is also contributing matching dollars to cover the remaining project costs, showing a strong local commitment to building safer, more resilient energy systems for the future. 

Grant recipients and their projects include:

Ansley - $1,097,047

Update distribution system from 2.4kV delta to 12.5kV grounded wye. Replace poles, transformers, overhead conductors, and regulators. Add a primary feed from CPPD Substation to provide a dedicated circuit into the community.

Central City - $1,800,000

Replace 34.5kV transmission line with 69kV transmission line. Perform upgrades to two substations, including transformers. New equipment includes 69kV power lines, new poles, new 69kV to 12.5kV transformers.

Chimney Rock Public Power District - $457,353

Install new electronic reclosers with control panels, install distribution automation radios with ethernet ports, and add new software and programing for all equipment in existing substations.

Cozad - $838,919

Replacement of power poles and construction of distribution tie lines to add redundancy. The project objective is to harden the system against severe weather incidents that could cause at-risk power poles to fail and customers to lose power.

Fairbury - $855,049

Retire existing 34.5kV line and install 1.5 miles of new, weather-resistant 34.5 kV line. The new line is anticipated to address existing system susceptibilities, improve reliability, guarantee system redundancies, and reduce system losses by increasing the line’s thermal and transfer capacity.

Continued on page 20 / See Grants

Photo of utility work in Wahoo. Provided by City of Wahoo.

HOW TO AVOID COSTLY EMPLOYEE BENEFIT PLAN MISTAKES

PART 1: STIPENDS

Overthe last 30 years, the health insurance market has seen multiple cycles of double-digit rate increases followed by market reform efforts at both the state and national levels. Efforts to curb this persistent healthcare inflation have used both regulatory and free-market approaches, to date, none of these reforms have been completely able to offset the nagging drivers of the aging population, decreased health status of the population, and expensive new treatments protocols. As certain as the upward health cost trend has been the recurring march of new “magic solutions” offered by carriers, brokers, and consultants. This is the first in a series of articles intended to help educate you on some of these alternative approaches for your employee benefit plan and the risks associated with each one.

As we have worked with LNM members on their employee benefit plan quoting, one approach we have seen suggested frequently is to offer a “stipend” to employees in lieu of a contribution to a traditional medical plan. This is usually a flat dollar amount that the employee is to use to buy either individual coverage on the ACA Exchange or subsidize dependent coverage through their spouse’s plan. This approach appears attractive because it can limit the employer’s cost and provide a more budgetable number moving forward. While this might seem to be a good alternative for employers facing tight budget constraints, it faces severe regulatory challenges on several levels. Any stipend paid to an employee is viewed as taxable by the IRS and requires the employer to withhold both payroll taxes and federal/state income taxes. This reduces the net impact of the stipend since both the employer and employee contributions to a group medical plan under an IRS Section 125 plan is deducted from the paycheck on a pre-tax basis. Some brokers/consultants have suggested labeling the stipend as an expense reimbursement for cell

phone or car allowance to avoid these taxes. This is also problematic since the stipend is usually tied to proof of insurance and many municipal employees are not required to have access to a car and/or cell phone at work. All of these issues create tax questions for both the employer and employee with exposure to audit and potential tax penalties.

The other significant flaw of the stipend approach beyond regulatory compliance and taxation is that it relies on the availability and affordability of individual health coverage. The ACA marketplace allows for annual open enrollments on January 1st of each year, which may not easily align with new employee hire dates. ACA rates are also based on age and actual number of dependents and their ages; this makes the cost of coverage for older employees and families much more expensive than younger single employees. This age-based rating undermines the flat-dollar stipends’ main attraction. Adoption of a variable stipend schedule to offset the variance in rates creates more administrative work and, since this is not a traditional employee benefit plan,

Continued on page 13 / Insurance

Dennis Maggart

GET A QUOTE AND JOIN TODAY!

The League Insurance Government Health Team (LIGHT) helps hundreds of its members throughout Nebraska obtain affordable health insurance coverage.

Plan and Network Choices

With seven plan options and three networks to choose from, you’re sure to find one that meets your group’s coverage and benefit needs.

Affordable Plan Options

Offering your employees much-needed protection against the high cost of medical care:

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Enrollment Options

Single: Covers the employee only

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Family: Covers the employee and eligible dependents including a spouse

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With several networks available, you have easy access to quality providers:

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Contact your current local Agent/Broker Or contact

Dennis Maggart

Executive Vice President P: 913-378-9841 or 816-718-0335

Dennis@McInnesGroup.com

Jane Limbach

Account Man ager P: 913-378-9840

Jane@McInnesGroup.com

Make your municipal dollars go further with surplus property

AsSell Your Surplus Throu als

Sell Your Surplus Thr

municipal leaders, you’re tasked with delivering essential services while managing tight budgets and limited resources. The Nebraska Department of Administrative Services (DAS) offers a powerful tool to help you stretch your dollars further and optimize operations: the Surplus Property and Asset Management program.

Using the State of Nebraska Account

All governmental departments in Nebraska should be auctioning their surplus through the State of Nebraksa’s GovDeals account.

This program provides municipalities with access to a wide range of surplus state property at significantly reduced prices compared to purchasing new equipment. From vehicles, like cars and trucks, to office essentials such as computers, monitors, desks, and filing cabinets, the inventory is diverse and constantly updated. Available items are listed on the user-friendly platform https:// www.govdeals.com/nebraska , making it easy for your municipality to browse and purchase high-quality, preowned equipment that meets your needs.

Sell Your Surplu

Using the State o

GovDeals.com is an online auction service for over 15,000 Federal, State, Local, and Educational Agencies to conduct online sales of their surplus property.

All governmental departments in Nebraska should be auctioning their surplus through the State of Nebraksa’s GovDeals account.

GovDeals.com is an online auction service for over 15,000 Federal, State, Local, and Educational Agencies to conduct online sales of their surplus property.

To view all active State of Nebraska auctions, visit this url or scan the qr code below: govdeals.com/NESurplus

But the benefits don’t stop at savings. Surplus Property and Asset Management also offers municipalities the opportunity to sell excess equipment you no longer need. For a minimal 7% commission, DAS will handle the sale of your surplus items to other government entities, political subdivisions, or the public. This service not only generates additional revenue for your municipality but also eliminates the burden of storing outdated or unused equipment, freeing up valuable space and resources.

To view all active State of Nebraska auctions, visit this url or scan the qr code below: govdeals.com/NESurplus

We are here to assist your agency with the auction process and encourage you to reach out for help or with questions. We have an established partnership with GovDeals, selling over 13,000 items on the site since 2018.

By participating in this program, your municipality can achieve a win-win: acquire affordable equipment to support your operations and recycle unneeded assets to benefit your community. Smaller municipalities, in particular, may find this program transformative, offering access to resources that might otherwise be out of reach.

GovDeals has over 200 categories of surplus, specializing in the sales of

tranportation real estate heavy equipment electronics specialized vehicles and more

GovDeals has over 200 categories of surplus, specializing in the sales of

Take the first step today. Visit https://www.govdeals. com/nebraska to explore the current inventory or contact Shannon Morris at (402) 471-3030 or Shannon.Morris@ Nebraska.gov to learn more about purchasing or selling through Surplus Property and Asset Management. Empower your municipality to operate more efficiently and cost-effectively with this valuable state service. 

tranportation real estate heavy equipment electronics specialized vehicles and more

For assistance listing auctions, purchasing, or general questions, contact Shannon Morris at:

Email: shannon.morris@nebraska.gov

For assistance listing auctions, purchasing, or general questions, contact Shannon Morris at:

Email: shannon.morris@nebraska.gov

Stevens Berry Chief Communications Officer, DAS

Insurance

Continued from page 10

any variance in the stipend payment is not protected by state and federal employee benefit non-discrimination regulations.

The final major challenge with stipend reimbursement is that it can make it difficult to recruit new employees who are used to traditional employee benefit plan offerings. Employees with dependents are especially reluctant to accept a stipend in lieu of contributions. The offering of a traditional group health plan is also a powerful retention tool and avoids problems that arrive as employees, depending on spousal benefits experience a change in spousal employment and/or coverage. While these change of life events result in a “qualifying event” under group health plan regulations, stipend eligibility is not covered by these rules.

As you can see, while the stipend option appears to simplify the challenge of employee health coverage, it offers its own long list of costs and regulations. We would be happy to help with your review of your benefit plan options and discuss any alternative you may be considering and assist you in finding the most appropriate coverage alternative for the municipality and your employees. 

Dennis Maggart is the President of McInnes Maggart Consulting Group and serves as the agent for LIGHT. LIGHT will be represented at the League's Annual Conference held Sept. 24-26 in Lincoln. Don’t forget to register to attend. If you have any question Dennis can be reached via email at dennis@mcinnesgroup.com.

Mark your calendars for these League conferences

Annual Conference

Sept. 24-26

Cornhusker Marriott Hotel, Lincoln

Midwinter Conference

Feb. 23-24, 2026

Cornhusker Marriott Hotel, Lincoln

Municipal Accounting & Finance Conference

June 17-19, 2026

Cornhusker Marriott Hotel, Lincoln

Section 1

AI in state and local government

Everything you need to know for implementation

Artificial intelligence can significantly enhance the work of government agencies and transform the constituent experience. But with so many implementation and policy considerations around the technology, many government leaders can feel overwhelmed at the idea of getting started with AI. Agencies can take inspiration from five simple words: Accelerate responsibly; don’t deliberate needlessly.

While developing sound implementation strategies and policy guardrails is important, AI solutions are emerging so rapidly that you could spend too much time debating written policy details that may be obsolete by the time you finalize them.

This guide reveals an efficient path for your agency to adopt AI solutions. Drawing from interviews with industry experts and veteran government IT leaders, the guide will help you achieve faster time-to-value with AI and build sound policies that evolve with your development and adoption timelines.

Move fast with an enterprise approach

Accelerating an AI project or program can seem like an immense challenge. Public agencies must obey strict security and data protection regulations while upholding the public interest and shepherding taxpayer funds. How fast can you address these issues while implementing AI in your enterprise?

“We stood up statewide applications with mobile apps and data sharing across agencies and remote contact centers in days and weeks during COVID,” says Jayson Dunn, executive government advisor with Amazon Web Services (AWS). “Implementing an AI solution can be done just as quickly.”

In fact, data shows that governments have rapidly embraced generative AI (GenAI) solutions. More than three-quarters

of state and local government professionals surveyed by the Center for Public Sector AI in May 2024 said they use GenAI as part of their work.

“That’s a staggering statistic,” says Dustin Haisler, president of Government Technology parent company e.Republic and co-lead of the Center for Public Sector AI. “This isn’t one of those technologies that you sit on the sidelines and wait for other people to figure out. You have to navigate it right now.”

The key to speed is not going at it alone. Reach out to professional colleagues for guidance. Attend technology conferences and learn about best practices. Allow technology partners to be trusted advisors and learn about their solutions and success stories from other agencies.

The quickest, simplest AI options

Two types of AI look like simple and attractive starting points, but they have major shortcomings:

Off-the-shelf solutions. It might be easy to implement AI via a software-asa-service (SaaS) app, but SaaS might not give you much room to maneuver. “You pay the subscription, and you get the vanilla version,” says Sean McSpaden, senior fellow for the Center for Digital Government (CDG). You may be able to configure an SaaS app to meet some of your needs, but fine-tuning it to your precise requirements might be close to impossible. And the technology still must comply with your data protection and privacy rules.

Embedded AI. GenAI is embedded in multiple widely used enterprise software platforms. This presents an alluring path to speedy AI/ML access because it circumvents traditional procurement processes. Complications, however, can accumulate rapidly. “Agencies must ensure that companies clearly define who owns the data and how it will be protected,” says Nikhil Deshpande, chief digital and AI officer for the state of Georgia. “Technology partners should be able to explain how their AI models function, particularly how they handle sensitive data and make decisions.”

Costs also can’t be ignored. “Most of these companies are not providing that functionality for free,” McSpaden says. In a state with thousands of employees, even a small new fee can add large expenses. IT leaders also need options for turning AI features off.

Why an enterprise approach makes more sense

Off-the-shelf and embedded AI/ML tools can handle the basics, like transcribing city council meeting minutes or assisting with word processing and email. But these solutions can’t fit every government’s need. “Meeting minutes are great, but agencies have much bigger rocks to move,” Dunn says. “They need customized solutions that improve service delivery and address operational challenges like traffic, constituent engagement, homelessness, access to healthcare, and 911 hold times.” Deshpande agrees: “Enterprise solutions, while more expensive upfront, offer greater flexibility and long-term customization.”

Enterprise AI systems must have built-in tools for compliance, privacy, and data security. They can scale up or down based on agency needs and are more reliable

because they are built for large organizations. They can also be trained on an agency’s data to improve accuracy and reduce the risks of biased or unfair outputs in GenAI queries.

Enterprise platforms also typically provide extensive training and support. According to the survey by the Center for Public Sector AI, public sector professionals identified a shortage of staff with AI-related skills and knowledge as the leading barrier to implementing AI over the next 12 to 18 months.

Training will have multiple facets. You’ll have to inform the public about your intentions and help them see the value of your solutions. Agency staff and leadership must be persuaded to adopt the new technology. Exploring existing use cases can help prepare you for these challenges. 

THIS IS PART ONE OF A FOUR-PART SERIES REPRINTED WITH PERMISSION FROM e.REPUBLIC. SEE NEXT MONTH’S REVIEW FOR THE NEXT INSTALLMENT.

Scams in Nebraska municipalities

Avillage clerk in a Nebraska community was contacted by a company that assured her the town needed to subscribe to their services for employment posters. The company explained that the village could be liable for not having the appropriate posting and could also face large fines from state and national government agencies. Only after sending the company checks for a period of time did the clerk and a member of the board look into the requirements for the employment poster and find that there were free and inexpensive alternatives.

DAVE BOS EXECUTIVE DIRECTOR, LARM

Municipalities are not immune to scammers. In fact, they may make the ideal subject for criminals who have easy access to city and village officials’ names and contact information and use that information to call or email them with “deals” or “assistance” that is usually a free service or isn’t necessary for the city or village.

Artificial intelligence (AI) has made it easy to take a municipality’s information and compose a convincing email about their needs and how a fraudster can “help” them. For example, if there is an agenda item about a housing grant on the municpality’s website, the name and address of the company and its representative can be used to write an email that looks like it came from that company requesting money to get the grant started. They can even use caller ID to suggest they are from a government agency. Fraudsters understand that if they gain the trust of an organization, they’re likely to believe anything they tell them. With only a little research of a municipality’s website, a scammer can find the name of an influential person in the community and use their name as a way to legitimize their requests. “John Boyd said you would be a great contact for this project” may be a lead-in into an appeal for money to get the “project” going.

Encourage municipal staff to fact-check any calls or emails from a person claiming to provide a new service or product for the city or village. It doesn’t take long to call John Boyd and ask if he knew about the company. An Internet search of a company name will often bring up results showing whether it is legitimate or not. Sadly, scammers can appear as very friendly people who take advantage of our genuinely friendly people in municipalities across Nebraska. Municipal staff may not believe that a “really nice” person could be lying to them. Clerks in small cities or villages may not have anyone else regularly in the office with whom they can discuss a questionable call or email, and a scammer knows how to exploit those workers.

Municipal staff members should know to ignore any call or email asking for funds, a password, or other sensitive information. LARM members can use the online training available at larmpool.org to learn more about cybersecurity and fraud prevention.

Train city workers to take the time to verify requests and to ask many questions. A call to a state agency may save a city or village thousands of dollars in what they might pay in a scam. 

How can municipalities prevent being scammed? Vigilance and training is the key.

David City museum reopens

The Bone Creek Museum of Agrarian Art was standing-room only at a celebration held in April

For four months, the Bone Creek Museum of Agrarian Art was closed. During that time officials moved the entire organization from the original location to a newly-renovated historical building in David City.

More than 400 individuals attended the re-opening festivity and participated in a ribbon cutting by Nebraska Department of Economic Development with comments by then-director, KC Belitz, remarks by state senators, gallery tours, hands-on crafts and a live artist painting demonstration.

According to information shared on the Bone Creek website, the organization intentionally preserved some of this building’s interesting history. Initially the grandfather of Joyce C. Hall (founder of Hallmark cards) owned the David City lots as a livery stable before selling to build the Ford dealership. From there, the large brick building served an assembly plant and showroom for Model-T Ford automobiles.

Continued on page 21 / See Museum

The Bone Creek Museum of Agrarian is located in David City and is the nation's only museum dedicated solely to art inspired by the earth. The museum relocated to a newly renovated location in the spring. Photo by the Nebraska Community Foundation.

across Nebraska across Nebraska 2025

National Night Out is an annual community-building campaign that promotes police-community partnerships and neighborhood camaraderie to make our neighborhoods safer, more caring places to live. National Night Out enhances the relationship between neighbors and law enforcement while bringing back a true sense of community. Furthermore, it provides a great opportunity to bring police and neighbors together under positive circumstances.

Fremont

Hastings

Bellevue

Scottsbluff

PHOTOS SENT BY MUNICIPALITIES AND SHARED ON CITY/VILLAGE FACEBOOK PAGES

Kearney

Bellevue

Fremont

Grand Island

Bellevue

Columbus

Lincoln

Grand Island

Continued from page 9

Falls City - $548,524

Upgrade existing 5kV infrastructure with a 13.8kV system to ensure the continuity of essential services, such as power supply to critical facilities. The project will install underground cabling, replace the 50-plus-year-old wooden structure with modern, resilient components, and implement of advanced monitoring equipment.

Fremont - $1,914,455

Relocate one of the 69kV transmission circuits, which will include storm mitigation-based design standards using upgraded poles and conductors. The transmission relocate will be a total of three miles. Eliminates a double-circuited power supply.

Midwest Electric Cooperative Corp. - $1,914,455

Rebuild 14.5 miles of a radial line on the 69kV transmission system connecting the Grant and Venango substations. The rebuild line will have shorter spans and more robust poles to be able to better withstand wind and ice loading and reduce the chance of wind causing lines to slap together.

Nebraska City Utilities - $1,419,708

Replace switchgears and relays and incorporate substation into existing SCADA. Construction of climate-controlled enclosure for equipment. The objective is to enhance the resilience and reliability to reduce future outage durations.

Nelson - $362,994

Inspect, repair, or replace aging utility poles and cutouts in the city’s distribution system. Replace cracked and potentially hazardous cutouts to ensure the safety of maintenance workers and the public

Northeast NE Public Power District - $1,914,455

Replace distribution system infrastructure. The project will manage utility poles, harden power lines, and replace old overhead conductors or underground cables.

Oxford - $646,190

Convert the remainder of the system to 12.5kV, replace switchgear breakers, install underground circuits, and construct a 12.5kV distribution line around the community.

Red Cloud - $626,203

New underground and overhead power lines will provide an upgraded circuit to 13.8Y/7.96kV. It will include a combination of conductors, new poles, and underground equipment, providing redundancy.

Tecumseh - $851,358

Add and replace substation equipment, including switchgears and transformers; install new meters; and add building to house equipment for protection from inclement weather.

Wymore - $381,143

Replace and rebuild critical infrastructure replacing and rebuilding aging H structure poles along the feed lines from the substation, upgrading existing transformers and adding additional transformers to meet load requirements.

Total funding: $15,627,853

Source – NDWEE

But like many buildings in small towns, the space was eventually vacated and fell into disrepair. Preserving the history fell in line with the goals of the community and CMBA architects, helped retain many of the historic details of the building, including the front lobby with the original tile floors, solid woodwork, and period light fixtures. There is also a Ford automobile on permanent display in tribute to the building’s history. This particular 1923 Model-T was believed to have been the very first four-door model T sedan to have been assembled onsite and sold from the showroom.

Now David City has another draw for visitors to the community—a 1917 structure remodeled to serve as a world-class art museum, while preserving the character and charm that has been part of this community for more than 100 years. The updated space includes five galleries, two classrooms, and a small theater.

“There is no underestimating the impact of this building on the activities of the museum. We now have dedicated spaces for artist talks and receptions, proper spaces for receiving and storing the growing collection, and room to host inhouse art workshops,” said collections manager Gabrielle Comte.  Continued from page

Visitors enjoy artwork on display for the first time in the new Bone Creek galleries. Photo by the Nebraska Community Foundation.

Tara Stingley

Assummer ends and employees return from vacations, employers should ensure their vacation leave and related paid time off policies are upto-date and consistent with Nebraska law. Notwithstanding Nebraska’s consistent treatment of vacation leave as wages for over a decade, many employers still fail to comply with this legal requirement by improperly retaining “use it or lose it” policies. This article addresses Nebraska law’s treatment of vacation leave and related paid leave policies, as well as recommendations for avoiding a forfeiture of wages.

A. Accrued Vacation Leave is “Wages” Under Nebraska Law

Most employers know that under the Nebraska Wage Payment and Collection Act (“NWPCA”), employees are entitled to all accrued wages upon separation from employment. The NWPCA defines “wages” as follows:

[ C]ompensation for labor or services rendered by an employee, including fringe benefits, when previously agreed to and conditions stipulated have been met by the employee, whether the amount is determined on a time, task, fee, commission, or other basis.i

But what role does vacation leave occupy in this definition?

Vacation leave: can you really “lose it” if you don’t “use it”?

BY TARA A. STINGLEY, CLINE WILLIAMS WRIGHT JOHNSON & OLDFATHER, L.L.P. *

In 2006, in Roseland v. Strategic Staff Management., the Nebraska Supreme Court answered that question by holding that employers were required to pay employees all earned, unused vacation leave benefits upon termination of employment.ii

Following the Roseland decision, the Nebraska Legislature amended the NWPCA’s definition of “wages” to state as follows:

“Paid leave, other than earned but unused vacation leave , provided as a fringe benefit by the employer shall not be included in the wages due and payable at the time of separation, unless the employer and employee . . . have specifically agreed otherwise.iii

Put another way, this means that vacation leave is wages for purposes of Nebraska law and must be paid out upon an employee’s separation from employment. This conclusion does not change depending on the reason for an employee’s termination or whether the employee complied with an employer’s “notice of resignation” policy. Accrued, unused vacation leave must be paid out to a departing employee upon the employee’s separation from employment.

In contrast, paid sick leave, by itself, is not included in the definition of wages that must be paid out upon termination of employment under

Nebraska law. However, employers that are covered by the Nebraska Healthy Families and Workplaces Act and that combine paid sick leave into an overall paid time off policy must pay out all accrued, unused paid time off to a separating employee.iv

B. Accrued Paid Time Off is Also “Wages” Under Nebraska Law

The NWPCA’s definition of “wages” expressly includes vacation leave. However, the NWPCA does not specifically address the treatment of “paid time off” (“PTO”), “paid leave,” or “personal time,” which typically combine the philosophy of vacation leave and other types of paid leave into one policy.

In Nebraska, “PTO which can be used as vacation leave should be treated the same as earned but unused vacation leave[.]” v The Nebraska Supreme Court established this principle in Fisher v. Payflex Systems USA, Inc. in 2013, finding that PTO, which generally can be used without restriction, was so similar to vacation leave as to make it a wage payable upon separation from employment.vi To decide otherwise, the Court held, would allow employers to avoid paying accrued vacation leave by simply characterizing all leave time as PTO, even when it encompassed and resembled vacation leave.

In reaching that holding, the Court noted that the NWPCA does not define the term “vacation leave” as distinguished from other types of “paid leave.” However, the Court reasoned:

[A] “vacation” from work is ordinarily understood to mean a paid leave of absence granted to an employee for rest and relaxation...Paid vacation leave is not conditioned upon an event, such as a holiday, an illness, or a funeral: “[I]t is not conditioned upon anything other than the employee’s rendering services for the employer.” Instead, an employee may use his or her earned vacation leave for any personal reason without conditions, including for an illness or disability.vii

The Nebraska Supreme Court recognized that with both vacation and PTO hours:

[A]n employee earns the leave and has an absolute right to take this time off for any purpose, subject to the employer’s approval of the timing. So the definition of vacation leave is indistinguishable from [the employer’s] definition of its PTO benefit. For this reason, legal commentators advise employers subject to similar statutes to maintain separate accounts for employees’ accrued vacation leave and sick leave or to pay employees their unused PTO hours upon separation if they combine vacation leave and sick leave into a single PTO policy. Moreover, in determining whether an employer has a duty to pay PTO hours upon separation of employment, courts have used the terms vacation and “paid time off” interchangeably.viii

In recent years, many employers have changed their vacation leave

and sick leave policies to combine the two types of leave benefits for easier administration. When employers lump those benefits together in one paid leave policy, without placing any restrictions or contingencies on their use (i.e., an employee does not have to be sick or go to the doctor to use the benefit), then the paid leave looks and feels like vacation leave, with no contingencies upon its use. If so, employees are entitled to be paid out for all accrued, unused paid leave benefits upon separation from employment.

C. “Use It or Lose It” Vacation Leave Policies Violate Nebraska Law

Once an employee has accrued or earned vacation leave or similar paid leave benefits (where the paid leave includes vacation leave without any contingencies on its use), the employee cannot lose those benefits. In other words, those accrued benefits cannot be forfeited or eliminated once they are allocated to the employee. For this reason, it appears that a “use it or lose it” policy where an employee forfeits their paid leave if the employee does not use it within a certain period of time is improper under Nebraska law.

A cautious approach to Nebraska wage law is wise, primarily because of the high costs and consequences to employers for violations. If a forfeiture of accrued vacation leave (and related paid leave) occurs, or if the employer fails to pay the employee for all accrued, unused vacation leave upon termination of employment (regardless of the reason for termination of employment), the employer may be subject to damages for a violation of the NWPCA. If an employee is successful in pursuing a claim under the NWPCA, an

Continued on page 24 / See Legal

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Continued from page 23

employer may be required to pay “reasonable attorney’s fees” in addition to the entire value of owed wages or vacation time.ix Furthermore, the NWPCA provides as follows:

If an employee establishes a claim and secures judgment on such claim under subsection (1) of section 48-1231: (1) An amount equal to the judgment may be recovered from the employer; or (2) if the nonpayment of wages is found to be willful, an amount equal to two times the amount of unpaid wages shall be recovered from the employer. Any amount recovered pursuant to subdivision (1) or (2) of this section shall be remitted to the State Treasurer for distribution in accordance with Article VII, section 5, of the Constitution of Nebraska.x

The NWPCA’s remedies provisions create the potential for steep damages, depending on the nature and extent of the alleged violation as well as the number of employees impacted.

We understand that other organizations have interpreted Nebraska law to allow for “use it or lose it” policies, where employees must use vacation leave by the end of the calendar year, or such leave is forfeited or lost, so long as employees have reasonable notice of the policy and a reasonable opportunity to actually use the vacation leave before it is forfeited or lost at the end of the calendar year. However, we are not aware of any reported Nebraska appellate court decisions that clearly authorize this approach. Moreover, due to the severity of consequences for an employer in violation of the NWPCA, this interpretation may leave employers open to unnecessary risk.

i Neb. Rev. Stat. § 48-1229(6) (emphasis added).

D. Recommendations for Vacation Leave and Related Policies

In light of the current state of Nebraska law on vacation leave and related policies, employers should keep the following recommendations in mind:

Regardless of an employment policy or agreement to the contrary, all accrued, unused vacation leave (and paid time off and paid leave that resembles vacation leave) must be paid to any separating employee, regardless of the reason for termination of employment.

“Use it or lose it” policies, whereby employees forfeit accrued and unused vacation leave at the end of the year, are likely impermissible and should be amended or removed immediately. Employees should be allowed to carry over all accrued, unused vacation leave from year to year.

An employer may adopt a policy that places a “cap” on accrual of vacation leave hours to prevent the accumulation of excess vacation leave. Under this type of approach, employees would only accrue vacation leave up to a specific point, with accrual then ceasing until the employee has used accrued leave to bring their total balance below the applicable “cap.”

* Special thanks to RuthAnne Hale for her assistance in the preparation of this article.

Editor’s Note: This article is not intended to provide legal advice to its readers. Rather, this article is intended to alert readers to new and developing issues. Readers are urged to consult their own legal counsel or the author of this article if the reader wishes to obtain a specific legal opinion regarding their particular circumstances. The author of this article, Tara A. Stingley can be contacted at Cline Williams Wright Johnson & Oldfather, L.L.P., 12910 Pierce Street, Suite 200, Omaha, NE 68144, (402) 397-1700, tstingley@clinewilliams.com, or www.clinewilliams.com

Endnotes

ii See Roseland v. Strategic Staff Mgmt., 272 Neb. 434 (2006).

iii Neb. Rev. Stat. § 48-1229(6) (emphasis added).

iv See Nebraska Department of Labor, Nebraska Healthy Families and Workplaces Act, Frequently Asked Questions, available at: https://dol.nebraska.gov/LaborStandards/WorkerRights/PSTFAQs (last visited August 13, 2025).

v Drought v. Marsh, 304 Neb. 860, 866 (2020)

vi Fisher v. Payflex Systems USA, Inc., 285 Neb. 808, 810 (2013).

vii Id. at 815.

viii Id. at 816.

ix Neb. Rev. Stat. § 48-1231(1).

x Neb. Rev. Stat. § 48-1232.

I’m not just writing her political history. I’m writing of the lasting influence of one woman’s life and character on the political arena where she served, on the community she governed and, most important, on the people she continues to inspire.”

Gaylor Baird

Continued from page 7 conference and was just named co-vice chair of a housing task force.

In her role on the Mayors and Metro University Task Force, she worked with a University of Nebraska professor to invite the National Science Foundation director to speak about regional innovation hubs that could use university research beyond the walls of academia; and NU’s Matt Hammons spoke to the task force about the economic impacts universities have on cities.

The mayor has been involved at the national level in other events, including those funded by the Bloomberg Philanthropies and she attended an international climate summit in Dubai.

She participates on a national level, she said, for two reasons: If there are good ideas and policy examples that can be adapted for Lincoln’s needs, she doesn’t need to reinvent the wheel; second, she gets to tell Lincoln’s story and put it on a national stage.

That doesn’t mean she has her eye on running for federal office.

“I love the city and I love city issues. It’s been my purpose outside of my family life, to help make this a better city for everybody who calls it their home.”

Like her predecessor, who she met by chance at a Lincoln restaurant years ago.

Beth Boosalis Davis writes about the Green Gateau meeting in her book, “Mayor Helen Boosalis: My Mother’s Life in Politics” published in 2008.

“I knew then with greater clarity why I feel compelled to tell my mother’s story,” she wrote in the book’s afterward. “I’m not just writing her political history. I’m writing of the lasting influence of one woman’s life and character on the political arena where she served, on the community she governed and, most important, on the people she continues to inspire.” 

Photos and story reprinted with permission.

-Beth Boosalis Davis

Celebrations! When is yours?

In July, the City of Lincoln opened the Play for All Playground at Mahoney city park with a large crowd-gathering ribbon cutting. The playground features accessible surfacing, interactive water table, open green space, musical elements, and imaginative play equipment designed to spark creativity, movement, and connection for people of all ages and abilities. A centralized shade shelter, benches, controlled access, and

BY SHARI SORENSON, RECREATION GRANT ADMINISTRATOR, NG&P

One of the perks of being part of the Game and Parks Land and Water Conservation Fund (LWCF) team is celebrating with communities. In May, the City of Blair held the grand opening for their new Generations Park. This new park nestled behind the city library is a multi-generational recreation space featuring pickleball courts, bocce ball, horseshoes, a shaded picnic area, restroom and a splashpad with a unique design reflecting the river and surrounding environment. The weather was warm so many children excitedly enjoyed the splashpad on opening day!

adult exercise equipment were included to enhance the experience for families and caregivers. Lincoln plans to build similar playgrounds in all quadrants of the city. Playgrounds for all abilities go beyond the requirements of the Americans with Disabilities Act providing opportunities for all to explore and to be able to play side-by-side.

Land and Water Conservation Fund and Recreational Trails Program

If you are interested in joining the Game and Parks staff for another celebration – Nebraska’s Cowboy Trail will celebrate 30 years with a bike ride, dinner, and a social on the famous bridge on Friday, Sept 5 in Valentine. Join in on all three parts of the day, or pick and choose what you’d like to participate in. Participants are required to register for the bike ride and dinner portions; no registration is required to attend the social. Proceeds from the event will support trail improvements in the Valentine Trailhead area. To find all event information and the registration links for the bike ride and dinner event in Valentine, go to OutdoorNebraska.gov and search “Cowboy30”.

Grant Opportunities

This year’s application window has closed but now is the time to work on your 2026 applications. To get you started with LWCF, we suggest you sign up for the monthly newsletter by emailing shari.sorenson@nebraska.gov. For more information on the Recreational Trails Program, go to outdoornebraska.gov and search RTP. We would love to celebrate an event in your community, start planning today! 

Photo courtesy of City of Blair

Photo courtesy of City of Lincoln

Photo courtesy of Nebraska Game and Parks

FEMA announces nearly $1 billion in federal funding to help states manage disaster preparedness

FEMA recently published Notices of Funding Opportunity for 15 grant programs, making nearly $1 billion available to communities across the country.

These federal funds will enable states to manage their preparation for disasters like fires, floods, tornadoes, earthquakes, hurricanes, as well as incidents like terrorist attacks or massive cyber disruptions.

According to the release, this funding announcement comes after an evaluation of all grant programs and recipients to root out waste, fraud, and abuse and deliver accountability for the American taxpayer.

To guide investments for preparedness grants during the FY 2025 grant cycle, Homeland Security Secretary Kristi Noem revised the National Priority Areas to ensure that grant funds are efficiently and effectively used to secure the nation and protect Americans.

This year’s priority areas are: (1) protecting soft targets and crowded places (including election sites); (2) supporting Homeland Security Task Forces and fusion centers; (3) cybersecurity; (4) election security (including verifying that poll workers are US citizens); and (5) supporting border crisis response and enforcement.

States and other eligible applicants should carefully review each Notice of Funding Opportunity to learn eligibility requirements, evaluation criteria, and applications periods. All published funding opportunities are available on Grants.gov. 

2024-25 TERM ROUNDUP:

Decisions important to local government

BY STEPHANIE MARTINEZ-RUCKMAN, LEGISLATIVE DIRECTOR OF HUMAN DEVELOPMENT, NLC

In their 2024-2025 term, the Supreme Court of the United States (Court) issued decisions that directly impact local governments on issues including public safety, employment law, and the environment. Through our legal advocacy process and in partnership with our founding partner organizations with the Local Government Legal Center (“LGLC”), the National Association of Counties (NACo) and the International Municipal Lawyers Association (IMLA), the National League of Cities (NLC) participated in amicus briefs presenting sound and persuasive legal arguments to the court on principles and issues important to good municipal government.

This article breaks down the most significant SCOTUS rulings and their implications for local governments from this past term. Understanding these decisions is essential for local officials to navigate the changing legal landscape and effectively serve their communities.

BONDI V. VANDERSTOK

This case concerns so-called “ghost guns” or firearm part kits that are sold online to anyone without background checks or serial numbers and can be easily assembled, often in a matter of minutes. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) issued a regulation concluding ghost guns should be considered firearms under the statutory definitions of the Gun Control Act of 1968 (GCA) and therefore be subject to the GCA’s requirements. The question in the case was whether these “ghost guns” should be considered firearms for the purposes of the GCA, which imposes licensing, background check, record keeping, and serialization requirements on the manufacturers and dealers of firearms.

The Court held that ATF’s regulation of so-called “ghost guns” did not violate the Administrative Procedure Act

(APA) as the firearm part kits could be considered firearms under the statutory definitions of the GCA. This decision means that the manufacturers of “ghost guns” must comply with the same requirements under the GCA to conduct background checks, keep records of sale, and serialize the firearms that other firearm manufacturers must comply with. This is a win for public safety in local communities as “ghost guns” create significant public safety concerns as they allow minors and felons who are otherwise prohibited from owning guns under the 1968 Gun Control Act to obtain them. They also create significant roadblocks for law enforcement in investigating violent crimes as they cannot typically be traced as they lack serial numbers.

STANLEY V. CITY OF SANFORD

The issue in this case was whether Title I of the ADA reaches alleged discrimination against retirees for post-employment retirement benefits when the individual cannot perform the essential functions of the job with or without a reasonable accommodation. In this case, the former employer, who was disabled and could no longer continue in her position, sued her employer based on a change the employer made to its post-retirement health benefits several years earlier (when the employee was qualified and working in the position).

The Court held that to prevail under Title I of the ADA, a plaintiff must be a “qualified individual,” meaning she must “plead and prove that she held or desired a job and could perform its essential functions with or without reasonable accommodation, at the time of an employer’s alleged act of disability-based discrimination.” In this case, the employee could not satisfy this standard when she sued and therefore could not bring a claim under the ADA for the change to the post-retirement benefits policy.

This is a win for local governments as a broad ruling in the petitioner’s favor presented significant implications for the public fiscal and post-employment benefit liabilities.

AMES V. OHIO DEPARTMENT OF YOUTH SERVICES

The issue in this case concerned majority group discrimination and what the proper evidentiary standard in these employment discrimination cases should be. Because the plaintiff was heterosexual and part of the majority group, the Sixth Circuit required that she also show “background circumstances to support the suspicion that the defendant is that unusual employer who discriminates against the majority.”

The Court unanimously reversed a Sixth Circuit opinion, which made it harder for employees in majority groups who are passed over for promotions or otherwise subjected to adverse employment actions to bring Title VII lawsuits.

A concern for local governments in this case was to prevent a broader ruling that could have undermined the evidentiary burden in employment discrimination cases and how those cases are litigated by overturning a 40-year precedent. The majority did not overturn that precedent, though two concurrences called it into question.

E.M.D. SALES V. CARRERA

The issue in this case concerns exemptions to the Fair Labor Standards Act’s (FLSA) overtime and minimum wage requirements and what standard of proof an employer must show to demonstrate an exemption applies. The lower court applied a “clear and convincing evidence” standard, which would make it very difficult for employers to demonstrate that an employee satisfied the exemption. Because violations of the FLSA carry double and sometimes treble damages, this is an important case for local governments.

The Court held that to prove that an exemption to the FLSA’s minimum wage and overtime requirements apply, an employer need only do so by a preponderance of the evidence rather than a more demanding clear and convincing evidence standard.

This is a win for local governments as a contrary rule would have resulted in more liability under the FLSA which comes with double and treble damages and attorney’s fees.

Here, the City and County of San Francisco challenged the Environmental Protection Agency’s (EPA) issuance of a discharge permit containing ambiguous provisions regarding water quality standards. This case seeks clarity in National Pollutant Discharge Elimination System (NPDES) permits and the generic water quality terms that expose permit holders nationwide to enforcement actions while failing to tell them how much they need to limit or treat their discharges to comply with The Clean Water Act (CWA).

Under the CWA, when an entity, including local governments, seeks to discharge pollutants into waters of the United States, that entity must obtain a permit from the EPA to do so. These permits often contain “effluent limitations” — i.e., limitations that provide specific quantities of pollutants that may be discharged. But as was the case here, they also sometimes contain provisions that make the permittee responsible for the overall water quality where the permittee discharges pollutants. The Court refers to these types of requirements as “end-result” requirements. This question here deals with the legality of these “end-result” requirements that do not provide any specific limitations on permittees but instead focus on the resulting quality of the water.

The Court held that the EPA is not authorized to impose “end result” provisions in NPDES permits and instead it is the EPA’s responsibility to “determin[e] what steps a permittee must take to ensure that water quality standards are met.”

This is a win for local governments as it helps ensure local governments understand their obligations under the CWA.

V. STINNIE

The question in this case was whether a party that obtains preliminary relief but never obtains judicially sanctioned relief because of the defendant’s voluntary change in conduct may be the “prevailing party” who qualifies for an award of attorney’s fees under §1988(b). In this case, the Virginia Legislature repealed a law being challenged after the parties obtained preliminary relief but before they obtained final relief, mooting the case. Thereafter, the plaintiffs sought attorney’s fees, claiming to be the prevailing party. Interpreting “prevailing party” to allow for attorney’s fees for preliminary injunctions would harm local governments by discouraging local governments from voluntarily changing suspect policies, incentivizing expensive litigation, and draining public resources.

The Court held that a party does not “prevail” under 42 U.S.C. § 1988 for the purposes of attorney’s fees based on obtaining a preliminary injunction, even if the defendant’s conduct later moots the case.

This case was a win for local governments as attorney’s fees awards can be significant, and a contrary result would undermine the public fisc.

FCC V. CONSUMERS’ RESEARCH

This case is brought by a group of consumers, a carrier, and a nonprofit challenging the Universal Service Fund (USF) that collects funds from telecom providers and redistributes them to localities lacking telecom and broadband access, utilizing an intermediary administrative entity which it has appointed to facilitate the program. The challengers argue that such a process and structure results in an unconstitutional delegation of Congress’s taxing authority.

The Court held that the universal-service contribution scheme does not violate the nondelegation doctrine. The Court held “that no impermissible transfer of authority has occurred. Under our nondelegation precedents, Congress sufficiently guided and constrained the discretion that it lodged with the FCC to implement the universal-service contribution scheme. And the FCC, in its turn, has retained all decision-making authority within that sphere, relying on the [USAC] only for non-binding advice.”

This case was a win for local governments as it preserved the USF, which is vital to the public health, safety, and educational welfare of local communities. The decision preserves the E-rate program, Rural Health Care program, Lifeline program, and High-Cost Program.

LACKEY

This case concerns the rights of litigants, including local governments, to challenge certain agencies’ final orders (including FCC final orders) interpreting a statute in district court after the time period required by the Hobbs Act to enjoin such an order has expired. The Hobbs Act provides circuit courts with “exclusive jurisdiction” to enjoin, set aside, suspend (in whole or in part) or to determine the validity of certain agency orders. The Act gives litigants 60 days to seek to set aside a rule after it is finalized. The issue in this case was whether the Hobbs Act required the district court in this case to accept the FCC’s legal interpretation of a particular statute when that litigant did not meet the Hobbs Act requirements.

The Court corrected the view that entities (whether governmental or private parties) typically have only 60 days to launch a pre-enforcement challenge to agency orders, and only at a federal circuit court. After Mclaughlin, that limited window only applies where Congress has expressly precluded judicial review in a subsequent enforcement proceeding.

This case was a win for local governments that are sometimes unable to challenge FCC and other agency rules within the quick time frames — often 60 days — and then are later sued with an enforcement challenge under that rule. This decision allows localities to at least challenge the agency rule under those circumstances.

TRUMP V. CASA

As the Court finished up its term, it issued the decision in Trump v. Casa (PDF), the birthright citizenship case. The merits of the birthright citizenship Executive Order were not at issue in this case. Instead, it centered on whether courts can issue universal or nationwide injunctions. The Court held that universal injunctions likely exceed the authority of district courts though there are some caveats to the ruling. 

This piece is co-authored by Amanda Karras, the Executive Director and General Counsel for the International Municipal Lawyers Association (IMLA). NLC, IMLA and NACo formed the Local Government Legal Center (LGLC) in 2023, a coalition of national local government organizations to provide education to local governments regarding the Supreme Court.