MRNRD to ask for 5 cent hike

Property taxes assessed by the Middle Republican Natural Resources District in Red Willow, Hitchcock, Frontier and Hayes counties will increase to almost 5 cents per $100 valuation, if approved by the MRNRD at the August meeting.

Currently, the MRNRD levies .053973 in property taxes. MRNRD board members got a better picture what it can levy at its regular meeting Tuesday night at McCook Community College.

The total bond amount to be borrowed to pay for surface water buyouts comes to $9.8 million.That includes the $8.7 million for surface water buyouts from three irrigation districts in the Republican River Basin, plus $1 million in interest, said Dan Smith, MRNRD general manager.

Preliminary numbers, as recommended by Ameritas Financial Services, the bonding agent the Republican River NRDs are working with, have the increase in property taxes in the Middle Republican River Basin at 04.6 cents per $100 valuation, with occupation taxes at $6.80 per irrigated acre.

The upper NRD is recommended to levy 09.22 cents in property taxes and $6.54 occupation, with the lower NRD at 04.59 cents in property and $5.47 occupation taxes.

The three Republican River Basin NRD's will pay off the bond according to a funding formula based on the impact of groundwater pumping, Smith said. The upper is responsible to pay 40 percent of the bond, the middle, 30 percent and the lower, 26 percent.

The bond will be for four years with a one-year call, meaning it can be paid off in one year. Previously, Ameritas had the bond at three years but it was changed to four as the upper NRD didn't have capability to generate enough taxes needed to pay its portion, Smith said at Tuesday's meeting.

LB701, passed this year by the Nebraska Legislature to address water owned to Kansas, gave Republican River NRD's the option to levy the taxes to buy surface water rights.

Under LB701, Republican River NRD's can levy up to 10 cents per $100 valuation in property taxes and/or up to $10 in occupation taxes per irrigation acre.

This new levy, if approved by all three NRD boards, averages out to a three percent increase in property taxes, Smith said. For 2006-2007, out of $1.61 million collected in property taxes in Red Willow County, the MRNRD is estimated to receive $874,061, according to figures provided by Marlene Garcia, Red Willow County Treasurer.

In other business, board members voted on water allocations for the next five years, a number that will be discussed again at an open hearing Aug. 29 and up for approval at the regular September board meeting.

Board members voted 10 to 1, with Gayle Haag voting against it, for 12 inches per year or 60 inches over five years. At the open hearing, the allocation can be increased but not decreased, Smith clarified.

The board also approved by 8 to 3 the hiring of a Basin Coordinator, for the Republican River Basin Coalition. The coalition, formed last month, consists of representatives from the three NRDs in the Republican River Basin who buy surface water rights and work with the bonding company. The position is tentatively set at $60,000 including benefits and will assist in administrating grants and other duties.

Those voting against the position were Haag, Rick Spencer and Brad Randel.

Board members present for the Tuesday meeting included Kevin Fornoff, Josh Friesen, Haag, Benjie Loomis, Stan Moore, Jerry Mustion, Dan Nelsen, Randel, Marty Schurr, Spencer and Joe Anderjaska.