NRD budget boost funds groundwater

A center pivot sprinkler crawls over hills and a young corn crop in the Republican River Valley between Bartley and Indianola, Nebraska, Wednesday morning. Irrigators are trying to keep up with unseasonably-hot spring weather. The highs Tuesday were in the triple digits -- one time-and-temperature sign in McCook read 118 degrees. Forecasters predicts more normal temps through Tuesday, daytime temps in the upper 80s to mid 90s, and night-time temps in the 60s.

CURTIS, Nebraska -- Middle Republican Natural Resources District directors Tuesday evening reviewed a preliminary 2013-14 budget that almost doubles last year's property tax levy and increases the occupation tax by 53 cents.

Early estimates show that the district's valuation could increase from $2,606,471,003 to $2,750,000,000, although some board members feel that the valuation could be closer to $3 billion when it's officially certified Aug. 20.

At the board's monthly meeting Tuesday in Curtis, MRNRD Director Dan Smith proposed a tax levy for next year of $0.060989 -- an increase from $0.034141 for 2012-13. The occupation tax per acre would increase from $9.47 to $10.

Smith said the increases "all go into groundwater management," which includes a $19 million loan repayment (of interim bank financing until bonds can be issued) for the Middle Republican's share of the purchase of a Lincoln County farm (called NCORPE -- the "Nebraska Cooperative Republican Platte Enhancement" project) in late 2012; an $8 million payment for the construction of pipelines that will allow groundwater from the farm to augment water supplies in the Republican and Platte rivers; and $10,815,000 to seed, maintain and operate the farm and to make bond payments.

Groundwater management costs of $39,255,000 would be funded with $38,815,000 in occupation taxes and $440,000 in property taxes. Last year, there were no NCORPE expenses and a total of $3,433,000 in groundwater management expenses.

Board members Brad Randel and Rick McConville agreed that it's going to be "a hard sell" to double the property tax levy in conjunction with an increase in valuation. Other board members questioned why the property tax levy is increasing if the majority of the budget increase is associated with the NCORPE project and NCOPRE is to be financed with occupation taxes.

The proposed budget total for 2013-14 is $41,053,140.

The budget will be approved in September.

Smith said the NCORPE bond process continues "slowly ... at a snail's pace." Directors of the four NRD's involved had a conference recently with Ameritas, the bond company that will develop the bond rating, Smith said. "This project is a totally new concept to them," Smith said of the agent's questions about the NCORPE project.

Smith said that once the bonds are issued, they can be sold, but not delivered for 30 days.

At this point, in the proposed budget, there is no compensation for surface water irrigators who are prohibited from irrigating by the Department of Natural Resources, which is prohibiting the storing and diversion of such water and requiring it to pass through dam projects to Kansas. Board member Bill Hoyt said he would hate to see compensation money come out of the MRNRD budget.

Sen. Mark Christensen's bill, LB522, which would require the state to pay compensation, did not get acted upon this last legislative session. Board member John Palic said there's still a chance that the state will take care of compensation.