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McCook Gazette

City tax growth dwarfed by that of county, school

Thursday, September 25, 2014
Bruce Baker

McCOOK, Neb. -- A recent comparison of property taxes levied by the City of McCook, Red Willow County and McCook Public Schools indicates the city is leading the way when it comes to conservative budget practices, a broader look strengthens the claim.

The comparison was compiled by City Clerk Lea Ann Doak based on public information on the Nebraska Auditor of Public Accounts website. It compared 2004 and 2014 property taxes levied by the three entities and was presented to City Council last week during the final reading of the city budget.

City Manager Nate Schneider said ag land had increased at a higher rate than residential property and even though entities like Red Willow County and McCook Public Schools had reduced their property tax levy, it didn't mean their property tax revenue had decreased.

"I really think the city has done a good job of watching out for taxpayers," said Schneider.

The City of McCook received $1,007,912 in total property tax in 2004 and ten years later the revenue has increased by a marginal amount to $1,071,296 according to the data. The $63,384 increase in city property tax is dwarfed by the increases received by the other two entities identified in the city's comparison.

McCook Public Schools received $4,789,970 in 2004 total property tax revenue and levied $6,437,198 in 2014 revenue, an increase of more than $1.6 million.

Red Willow County received $1,823,449 in total property tax revenue in 2004, increasing their haul to $3,812,909 by 2014. The county increased their property tax revenue by more than $1.9 million, topping even the school district's growth, when comparing 2004 to 2014.

The city received criticism in recent weeks for maintaining their property tax levy amount while the school district, county and even McCook Community College, decreased their respective levy amounts.

Schneider said the criticisms were akin to comparing apples to oranges and a broader look at property tax performance was warranted, prompting the comparison.

A more detailed look at the city's 2004 and 2014 General Fund budgets further supports Schneider's call for praise.

The City of McCook budgeted $2,012,105 in revenue from all taxes in 2004, including Sales Tax, Property Tax, Public Power In-Lieu of Taxes, Motor Vehicle, the Municipal Equalization Fund and several others.

Fast-forward to 2014 and the city's total revenue from all taxes has grown by less than the property tax growth alone, from the other two entities.

The City of McCook budgeted $2,631,496 in revenue from all taxes in 2014, representing an increase of $619,391, compared to the $1.6 and $1.9 million increase of the school district and county respectively.

Doak said during last week's meeting the property tax information she used in the comparison was available to the public at: http://www.auditors.nebraska.gov

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  • Thank you Gazette for this story. Most often the paper has questioned the city about various budgeting issue and rarely are the other tax supported agencies under the same pressure....or so it seems. The annual independent auditor reports have shown the the city has less cost per resident than nearly every First Class city in the state....and some of them have an additional airport authority tax where McCook covers the airport under its one tax. Recent shots at the mayor on him not being conservative and the city gouging the citizens, now hopefully can be silenced. Not expecting apologizes but let the truth speak. McCook is one of the lowest city taxed First Class Cities in the State!

    -- Posted by dennis on Thu, Sep 25, 2014, at 4:20 PM

  • Only if it was the truth....let's take out the sales tax the city receives and figure it again.

    -- Posted by ph2856 on Fri, Sep 26, 2014, at 4:19 PM

  • The article is about PROPERTY tax and is the truth. The citizens voted in a sales tax, which nearly every city in the state the size of McCook has...and some have even higher sales taxes. I do understand that for some complaining and being unhappy is the only way they look at things.

    -- Posted by dennis on Fri, Sep 26, 2014, at 4:54 PM

  • The flame held to your own hide is always the hottest.

    -- Posted by Aaron Kircher on Mon, Sep 29, 2014, at 8:14 PM

  • I believe that "sales tax" was included in the overall calculation, of course I gathered that information from the article above, I'm not sure what that comment means...."Only if it was the truth....let's take out the sales tax the city receives and figure it again." The increase in the sales tax is an increase, but its not fully realized by the local property tax payers. It is shared by all those who pass through and have the benefit of fueling up, dining and purchasing goods. I say benefit because in Southwest Nebraska, there are fewer and fewer towns that one can fuel and eat during late nights and early mornings. I have traveled around in my years, and many a times I would pass through a town at night that didn't have fuel available and I would have gladly paid $10.00 for a cheese burger but to no avail. McCook is at a crossroads of two well traveled highways, its an obligation to have services available, THAT is a benefit. So the sales tax that we pay is greatly contributed to, by those that wouldn't scoff at the 42 cents that they pay for the $6.00 cheeseburger, because they have the ability to get it when they need it. If I was to go to any town 60 miles in any direction, I would be contributing to their sales tax income, and even with the money spent on that sales tax, it would appear that the City is still well managed financially. I don't get the issue. McCook has actually decreased the local tax payer's obligations by dispersing that on EVERYONE that buys goods in town, if not, that extra would have to be made up by the locals.... to me that's good business.... to you its a fleecing I guess.

    A side note.... my county property levy didn't increase, but hey, why would it need to? My property values shot through the roof, $30,000.00 increase to my property here in town, and Im not the only one by far that this has happened to. I bought my house for $38,000.00, put on an addition, had it appraised by an independent appraiser for $113,000.00, and the county assessed it at $142,000.00. Of course I contested....... and of course I was denied. If I was looking to buy my house as an outsider, I wouldn't pay more than $108,000.00, so as a seller, it looks like I'm paying for taxes on an escelated value only to sell it for less than its worth in the end. YEAH..... sales tax.... that's what I'M worried about.

    -- Posted by Nick Mercy on Mon, Sep 29, 2014, at 11:01 PM
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