City officials speak out against valuation limits

McCOOK, Neb. -- Legislation attempting to slow down increases in ag land valuations, as well as the growth of Nebraska property taxes, is receiving kickback from city and school officials.

The bills, LB958 and companion bill LB959, intend to limit statewide valuation increases on agricultural land to 3 percent annually, as well as remove exclusions to the levy limit and place limitations on the budget of restricted funds.

City Manager Nate Schneider spoke out against the legislation during last week's McCook Area Chamber of Commerce conference call with District 44 Sen. Dan Hughes. He said it would usurp the authority of cities and take away from their ability to work outside the levy limit.

Nebraska municipalities are all fairly strong in opposition to the bill, according to Schneider. He said the City of Nelson recently implemented a sinking fund to pay for a town hall or fire barn and the proposed legislation would require such a project be taken to a vote of the people for approval.

"I think it's a bad idea for cities and also would affect schools and counties," said Schneider.

Sen. Hughes said he had received pretty much universal feedback from schools and cities in opposition, however, the legislation was introduced in response to the chorus of complaints from property tax payers. He said both agricultural land and residential property owners were feeling the crunch from rapidly rising valuations in recent years.

Sen. Hughes said a shift back was needed but whether that correction came in the form of levy limits or budget limits he wasn't certain.

"We have the next 40 days to figure it out," Hughes said, referencing the remaining 2016 legislative session.

LB959 was referred to the Education Committee in January and is scheduled for a hearing Tuesday.