Bonds for street work push city tax request up

    City of Imperial property owners will have two chances this year to comment at public hearings on the 2022-23 budget.
    Because the city’s proposed tax askings increased more than 2% over the past year, the additional hearing is required. New state legislation passed the last Unicameral session now requires that extra hearing of all taxing entities if they exceed the 2% mark, said Clerk/Administrator Jo Leyland.
    The special state-mandated hearing will be this Friday at 6 p.m. at the county courthouse.
    The city’s budget hearing will be held Monday at a special 6 p.m. meeting in the council chambers.
    Council members and the mayor discussed the proposed budget at Monday’s council meeting.
    While the proposed General Fund budget is up 5.4%, it’s the city’s bond fund request for property tax dollars that is affecting the overall 17% increase in tax dollars requested for 2022-23.
    Property tax dollars for the bond fund are going up from $379,796 to $554,900, or 46%.
    The General Fund is asking for an increase in taxes from $910,000 currently to $958,800, or a 5.4% increase.
    Overall, the total tax levy in dollars will grow from $1,302,694 to $1,528,837, or a jump of 17% in the 2022-23 budget proposal.
    Leyland said the majority of the increase is to pay for the bonds for street work the past year along Holland and East 2nd Streets.
    That $1.208 million project was bonded 100% with city tax funds on a vote by the council when the bid was accepted.
    At the time, Leyland said the street department had between $1.5 million and $1.6 million in cash, but the council opted to bond the entire cost of the project instead.
    At the May 2021 meeting, city officials cited the current low interest rate for municipal bonds in making their unanimous vote to bond the entire project.
    Councilman Doug Gaswick noted then the large amount of cash in the street department has come up as a criticism during the city’s most recent audit, saying initially he favored spending some of that money, and bonding only half of it.

    However, discussion turned to future street department equipment costs and other projects on the back burner that could require some of those funds.
    There was also discussion before the bid was approved last year to pave only Holland Street and not 2nd, but  increasing costs due to inflation were of concern.
    Regarding the General Fund, some of the increases for 2022-23 are due to insurance, gas costs and salary increases, according to Monday’s meeting discussion.
    Mayor Dwight Coleman said he felt “pretty good” about a 5.4% increase in the General Fund when inflation is 8.3%.
    “And we’re able to raise salaries 8-10% and keep our budget at that level,” Coleman said.
    According to the proposed salary schedule for 2022-23, most full-time employees will see 8-10% increases in pay, although there are a couple who’ll see larger hikes.
    The city’s valuation grew more than $12 million the past year from $184,760,626 to $197,227,834. Leyland said $2.6 million of that was due to new growth.
    There was no action on the  budget or wage ordinance, both of which will be before the council at their special meeting Monday.
No nuisance found on East Highway 6 properties
    After a 40-minute public hearing regarding properties along East Highway 6, the council voted 4-0 to determine no nuisance exists there.
    Amber Kuskie from West Central Nebraska Development District, the city’s nuisance officer, visited with the council via zoom. WCNDD was asked by the city to review the locations.
    Kuskie provided photos of  the Markee Ag Services and Frenchman Valley Produce properties. Owners Brad Markee and Tim May were both at Monday’s hearing.
    Markee claimed a berm built by May on May’s property to the north has caused water to stand on the Markee property. May alleged Markee changed the natural drainage there when he built his new building, which is causing runoff onto his field to the north. May also alleged the way Markee’s gutters drain, it sends water to the north, as well.
    Charlesa Kline, when asked, said the CFO church nearby where she and husband JR are pastors, also has some drainage issues when there is rain.
    Markee showed photos of the standing water taken in May, after the area received some heavy rain. He also asked if it wasn’t an issue to the city, why did Public Works Supt. Pat Davison dig a trench at the affected area to drain water.
    “I was told to,” Davison said.
    In the end, noting the  current dry conditions, the council voted 4-0 on a resolution that states no nuisance exists on the properties.
    Watch next week’s issue for more on the Sept. 19 meeting.