Ag land boosts valuation to $1.2 billion

McCOOK, Neb. -- The tax valuation of Red Willow County has increased by $113 million, going from $1,128,594,832 in 2014-15 to $1,241,722,528 for the 2015-16 tax year.

At their weekly meeting Monday morning, commissioners said the increase was mainly in agricultural land.

This follows another increase, from $931,795,554 in 2013-14 to the $1.128 billion of last last year, also because of increases in the tax valuation of ag lands.

As they work on the budget for this year, commissioners have authorized salary increases of $160 a month for 40-hour-a-week full-time employees; $140 for 35-hour-a-week full-time employees; and $.50 an hour for part-time employees.

Also with this budget, commissioners are faced with the possibility of having to create a one-time tax levy to make principle and interest payments on the 2012 construction bond at the county-owned Hillcrest Nursing Home.

"I don't see that we have a choice," chairman Vesta Dack said, explaining that Hillcrest is having financial difficulties because of changes in federal health care regulations, Medicare/Medicaid reimbursement regulations and bad debts (of private-pay residents who don't pay for their healthcare).

The tax levy that commissioners are considering would be a one-year thing, Commissioner Earl McNutt stressed, and would be earmarked to pay the $100,000 principle payment and $31,000 interest payment due Oct. 15, 2015, and the $31,000 interest payment due April 16, 2016.

The problem is, McNutt said, is that taxes come in a year off, so the board is hoping there will be enough money in the county's "Inheritance" fund available to make the payments in October and April. Dack said that the funds raised by taxes next year will be used to repay "Inheritance."

Commissioner Steve Downer said the tax levy for the Hillcrest bond payments would be outside the levy limit.

McNutt emphasized that the county is not assuming repayment of all of the nursing home's 20-year $2,145,000 construction bond. The board is hoping that the nursing home can manage itself well enough from here on to pay off the remainder of the bond itself.

Budget clerk Dan Miller said the board can add a tax request for the nursing home if it's necessary. "We definitely need to start one," McNutt said.

Miller is still waiting for several figures from the general fund, road fund, sheriff's department, Hillcrest revenue and Kiplinger Endowment before he can finish the county's 2015-16 budget.

In other action, commissioners:

* Will continue with an agreement with the McCook Police Department for the police department to provide dispatch services and answer telephone calls off-hours for the county sheriff's department for $3,718.33 per month, or $44,619.96 per year. An agreement dated July 1, 2009, automatically renews each year.

* Authorized Dack to sign an agreement in which Boys Town, Grand Island, will accept Red Willow County's juvenile offenders pre-adjudication for $180 a day, when probation officers determine the child needs to be placed outside his/her home. The state pays for placement, if it's necessary, following adjudication.