City: Trend favors little loss of state aid

McCOOK, Neb. -- City officials provided an update to the local property tax landscape and indicated a decreasing trend in the statewide average should lessen concerns surrounding a potential revenue loss for McCook.

Mayor Mike Gonzales said city staff learned last week the statewide average for municipalities, pertaining to property tax levy, had decreased.

The shift provides additional cushion between McCook's property tax levy and the state wide average, which auditors previously indicated was at a point warranting serious consideration during the upcoming budget process.

In recent years, during the city's annual audit, city leaders had been advised that as the statewide average approaches McCook's property tax levy so does the possibility of losing some portion of the State Municipal Equalization Funds. During the 2015 audit it was communicated the statewide average of approximately $0.318 was right at the city's $0.319 levy.

"For the past 4 years we have heard from the firm that conducts the city's audit that we need to watch our levy request because it is getting close to going below the state levy average," said Mayor Gonzales this morning.

Should the statewide average have continued its previous increasing trend and the city levy found itself below the average, "we stand the possibility of losing a portion, who knows what the portion would be, of the $340,000 State Municipal Equalization Funds that we currently receive," said Gonzales.

Gonzales reiterated no action or decision had been made. He indicated that if the city found itself in a situation faced with losing some state aid or increasing its property tax levy, the decision would require serious consideration and an increase wasn't guaranteed.

"I believe it has been a source of pride for the city staff and City Council that they have not had to increase the city's tax levy since 2002," said Gonzales.

The City of McCook has maintained the same property tax levy rate of $0.319044 since 2002. The statewide average levy decreased from $0.3184307018 for fiscal year 2014-15 to $0.3115393578, according to data provided by the state website.