Jefferson County To Increase Tax Levy

By Gordon HopkinsBeset by increased costs and a workforce shortage that shows no sign of abating anytime soon, Jefferson County Commissioners were forced into making a very difficult decision when they announced the tax levy is expected to increase by 4.66 percent.Commission chairman Mark Schoenrock said at the hearing, “Whether it’s the cost of our labor, the cost of equipment or fuel or parts, the external services that the county needs to provide those services to our citizens, all those things have gone up by much more than 4.66 percent. And so, the board feels, I think, very confident that we have a good budget here, that is going to keep our level of service at the same to our citizens.”A public hearing was held Tuesday morning, September 13, 2022, to discuss the 2022-2023 budget and give citizens an opportunity for input.Raise Taxes or Cut ServicesProperty taxes are an especially contentious issue in Nebraska and Commissioners have struggled with the budget for several weeks. Commissioners made very clear they had exactly two options: raise the tax levy or cut services.Schoenrock said, “Each of us the commissioners have had extensive discussions with many of our residents We’ve asked them, ‘What would you like to cut?’ Because the cost of everything, as you’re well aware, has increased dramatically. The cost of labor, the cost of our benefits package, the cost of our equipment, parts services, we could go down the line, all of those things have increased an average of 10 to 12 percent.”“We seriously considered all alternatives. We’ve talked to many of our citizens. And the challenge that we have is that people do not want to cut any levels of service,” said Schoenrock. “I probably have talked to well over 100 people regarding what they would like to see us cut as far as county services. And I’ve had not one person tell me that they would like to cut the level of ambulance service, the level of law enforcement, our services here in the courthouse. Whatever it is, they don’t want any services to be cut.”WorkforceThe labor shortage that has plagued both public and private sectors has necessitated the raising of wages in order to attract and retain employees. Earlier this year, employees of the Sheriff’s Office were given raises after the signing of a new union contract.Staffing is a primary expense for both private businesses and government office. Ralph Tate, a Jefferson County resident, attended the meeting and he asked about reducing the number of hours local government offices are open, “It was really a matter of trying to figure out how in fact, you could reduce the number of service providers, for example, the idea that one of those offices might be closed for a day the assessor’s office or the tax office.”Commissioners said they looked into that option and found it untenable. Tate said, “Are you telling me that would absolutely cause the whole thing to fall apart? I just find it a little hard to believe.”Schoenrock said, bluntly, “Well, it would.”Commissioner Michael Dux indicated staff for the courthouse is already stretched thin, “Look at the courthouse. They have their own responsibilities. They have things they’d have to get into the state, reports. And we discussed, as Mark said, with each office. There’s no way they can get by with less time in their office, and less people in their office, to get everything done that they have to get done. There’s no way they can get everything done with a reduction in staff. One office in the courthouse said they don’t have enough staff. They can’t take more than a couple of days off at a time for vacation.”Dux then raised another point, “Where are you going to find an employee that wants to work 30 hours a week?”AmbulanceA major expense for the county is ambulance service. Brian Blobaum, CPA, of Blobaum & Busboom PC in Fairbury, explained, “The ambulance fund does not have the same taxing district as the rest of the county yet it falls into the county’s budget.”According to Blobaum, the 4.66 percent increase in property tax dollars combined includes a 4.13 percent county wide general fund increase and a 44.9 percent Ambulance District #33 fund increase.Unfunded MandatesKesha Eldridge, Chairperson of the Village Board of Jansen, was present. She noted, “I think the average citizen doesn’t realize what goes on behind the scenes and each one of these offices and all of the duties that are required by the state.”Local government officials often find themselves frustrated by what they called unfunded mandates, the term for laws, regulations or other requirements imposed by a higher level of government on a lower one, but without accompanying appropriations to cover the cost of compliance. These can negatively impact local budgets and require increased tax levies to make up the difference.On February 11, 2022, the Nebraska Legislature passed a bill into law intended to cut inheritance tax rates and increase exemptions.In addition, the Nebraska legislature passed LB (Legislative Bill) 644 last year. The bill has been dubbed by some the “Postcard Bill” because, according to the bill’s statement of intent, “LB644 requires a postcard be mailed to all constituents in relation to the political subdivisions request for higher levy rates than cannot exceed the previous years request.”That expense will have to be borne by the county.Next StepThe new budget is not official, yet. There is one more public hearing scheduled for Monday, September 26, to be held at the 4-H building in the Jefferson County Fairgrounds, beginning at 6:30 p.m. This will give the public one more opportunity for input before the proposed budget is adopted.

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