$1.36 million from local NPPD bills goes to health insurance, general fund

McCOOK, Neb. — The City of McCook netted $1.36 million from electric bills that city residents paid in 2021.

That’s because in exchange for its use of electric poles the city owns, Nebraska Public Power District, in a retail operations agreement, pays the city 12.5% of revenues paid by each customer in the city. Of each NPPD bill a city resident pays, 12.5% of that goes to the city.

Of the $1.36 million the city garnered last year, $375,000 was transferred to the Self Insured Health Insurance Fund and $986,900 to the General Fund.

Those funds and other revenue/expenses of the city were presented as part of financial highlights presented Monday night via Zoom at the McCook City Council meeting by Mary Luth, auditor AMGL CPAs and Advisors. Other financial highlights included:

-- In April 2021, the council approved the early redemption of Combined Utilities Revenue Refunding Bonds and authorized the issuing of new bonds in an amount not to exceed $6.6 million. Proposed savings are expected at $545,000 over the course of the 15-year bond. The bonds were initially taken out to pay for state loans the city received in 2006 to pay for the construction of a drinking water treatment facility at $9.9 million and improvements at the wastewater treatment plant at $3.9 million.

-- The city received $684,600 from the Coronavirus Relief Fund for presumptive payroll reimbursement for police, firefighters, paramedics and 911 dispatchers. The city also received its first installment of the expected $1.33 million from the American Rescue Plan Act.

-- The city fire department received $14,365 from the CARES Act Provider Relief Fund for reimbursement of supplies and equipment needed by EMS employees during the COVID-19 pandemic. The McCook Ben Nelson Regional Airport received $43,000 from the CARES Act Airport Grant for payroll reimbursement,

-- The natural gas franchise agreement with Black Hills Energy is for 10 years with the franchise fee paid to the city quarterly. The franchise fee is $0.018 per therm delivered. The annual revenue received last year was $55,000.

-- Total sales tax receipts for 2021 were $2.9 million, of which $292,677 were from motor vehicle taxes and restricted to Street department use. That is an 11% increase from 2020 sales tax receipts and City staff believes the increase is due to that people chose to shop locally during the pandemic and that online sales were taxed for the first time, with more people also shopping online during the pandemic.

-- The 1/6th sales tax receipts generated $484,540 LB840 funding, which included $48,760 from motor vehicle sales tax restricted to street department use. The MCDC focused on the development of workforce housing, using $150,000 to purchase land in the North Pointe subdivision and $70,000 as a down payment for land in the Seminole/Park area, for workforce housing.

-- The MEDC proposed the creation of a $750,000 Rural Workforce Housing Investment Fund to be used for low interest, deferred loans hoping to lower the cost of construction of homes and to provide housing rehabilitation assistance. Funding was proposed through a $250,000 Rural Workforce Housing Fund grant, a $250,000 grant from the Nebraska Investment Finance Authority and to raise $250,000 locally. Contributions to the local match came from $54,300 from LB840 funds, and $25,000 from the city’s ACE funds.

-- The 4% occupation tax established by the city council in April 2018 netted $133,800 for the general fund.

-In fiscal year 2015-16, the General Fund financed the purchase of several capital equipment items with a loan of $295,567 from the Water Fund Reserves.

The loan had a term of five years with annual lease payments of $60,000. The final payment was made in January 2021.