After a heated debate that former council member Glenn Petersen called “micromanaging,” the North Platte City Council passed their 2008-09 budget.

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The budget, which goes into effect Oct. 1, increases the city’s general fund budget 2.5 percent to $23.97 million.

The mil levy, the amount charged to property owners based on the value of their homes, actually dropped 3.6 percent from 2007. The city’s portion, with the airport excluded, is $0.481940 per $100 valuation, a decrease from $0.499902 in last year’s budget.

That means that a homeowner with a house valued at $100,000 would pay $481.94 to the city in property taxes this year compared to $499.90 last year, a decrease of $17.96.

Of course, that $100,000 house probably increased in value as well by the Lincoln County Assessor’s office over the past year.

The growth in property valuations of homes and businesses in the city increased 6.5 percent from last year to $1.15 billion, according to figures provided by the Tax Assessor’s office.

The city is seeking $5.576 million in property tax requested for 2008-09.

3.23 million in property taxes in the general levy, nearly $100,000 less than last year’s $3.33 million.

The budget calls for 58 percent of the revenue to go to the city’s general fund for operation. About 32 percent will go to debt service, 8 percent to the police and fire pensions.

City mil levies in the recent past (without the airport levy included):

2003-2004: $0.47722, budget $21.41 million

2004-2005: $0.4708, budget $19.96 million (- 1.3 percent)

2005-2006: $0.474282, budget $21.45 million (+0.74 percent)

2006-2007: $0.463348, budget $22.51 million (+2.3 percent)

2007-2008: $0.499902, budget $23.38 million (+7.8 percent)

2008-2009: $0.481940, budget $23.97 million (+2.5 percent)

Police cars

Before the final vote members of the North Platte police and the North Platte Development Corporation Board of Directors both strongly urged the council to reconsider the amounts budgeted for them.

About 10 police officers filled the council chambers including Police Chief Martin Gutschenritter and Deputy Chiefs Jim Agler and Dwight Livingston.

The police were there to protest $96,000 that the council wouldn’t allow for the purchase of new patrol cars and mobile video equipment.

Agler implored the council to reconsider their decision.

“This is not a want but a need,” Agler said. “We’ve got to be able to get officers safely to calls.”

Agler said the department found the money last year when they had some excess in their budget and made a formal request but the council told them to bring the issue back during budget. Agler said they did but the council turned them down again.

Agler said one patrol car with more than 200,000 miles was costing the department $1.70 a mile in repairs, fuel and maintenance.

“Please, it is an officer safety and public safety issue,” Agler said.

Sgt. Steve Reeves, representing the 55 members of the police union, said it was the first time in his 20 years as a North Platte officer that the purchase of new vehicles had not been in the budget two years in a row.

“I don’t know the dynamics here or why we are not funding cars we absolutely have to have,” Reeves said. “This policy puts officers at risk.”

Reeves said officers understood the dangers of the job. He said one officer is out now from catching a serious infection from transporting a prisoner and another is out with a broken finger from wrestling with another prisoner.

“But I did not know we were going to face risks caused by our employers,” Reeves said. He also urged the council to allow the department to use grants to purchase new video equipment.

Police Chief Martin Gutschenritter said the city council used to replace every squad car annually.

“This is basic police equipment and we are delivering basic police service,” Gutschenritter said.

Denise Stadler, the wife of an officer, asked the council to consider the safety of these officers who are fathers and husbands and sons and give them safe and reliable equipment.

Donna Tryon, Sunflower Road, wondered why patrol cars are always lined up on the north side of police headquarters no matter what time she drove by.

Jonathon Tucker said his personal car has 200,000 miles on it and he doesn’t drive it out of the city.

“This budget is $24 million,” Tucker said. “If we need police cars and cameras there is ample room to find it in here.”

Kerri Green, animal shelter supervisor, said she was a single mom raising two kids and the police were her only backup when she was on duty.

DEVCO

The council had earlier cut their annual contribution to DEVCO by half – from $125,000 to $62,500.

Daryl Smith, DEVCO board member, argued that cutting their contribution by half put the board in a bind. He said that it would be difficult to find alternative financing at “this 11th hour.”

Smith wondered what kind of message the city was sending about its support for economic development.

DEVCO and the North Platte Area Chamber of Commerce merged recently and, with the departure of David Bernard-Stevens last December, it has been struggling to get momentum back.

DEVCO has hired a search firm to locate a new director and they are close to hiring one, Smith said.

Council member Judy Pederson said the city supported economic development in a variety of ways including its own Planning and Development Department and the study of the downtown infrastructure.

Pederson said it was hard to commit to that kind of taxpayer money without the city having any oversight.

Smith agreed the board should be more accountable and would do a better job keeping the city informed about what was going on.

Dan O’Neal, another board member, agreed that the DEVCO board needed to be more accountable. He urged the council to look at the contribution as an investment instead of a donation.

“We should have a structured plan on how to wean ourselves off the tax roles,” O’Neal said.

Dudley Oltmans said merging DEVCO with the Chamber of Commerce was unique and would serve the community better.

“We’re trying something new,” Oltmans said. “Kearney wanted to do that but wasn’t able to for political reasons. We’ve got to come up with a better way to fund the organization. We’ll get that done.”

The debate

The contingency fund that the city keeps for emergencies was funded to $245,000 in the budget.

Judy Pederson made a motion to remove the $100,000 worth of KENO funds that is used to subsidize the Iron Eagle Golf Course and add those funds to the contingency fund.

“Why?” asked council member Dan McGuire. He said it would only then become Mr. Hawks job to disperse that money.

Pederson argued that there were compelling reasons that the city needs that money for and “not just for the enjoyment of a few.”

McGuire wondered why the council spent 7-1/2 hours on the budget during budget hearings but did not make any changes then.

Council member Don Kurre said he would have at that time had he known that was the time to do it.

“But I say it’s time to say enough is enough and put the money where it needs to be today – in police cars and downtown infrastructure but not on the golf course,” Kurre said, to a round of applause from the audience.

Council member Jim Parish pointed out that adding $100,000 to the contingency fund would allow them to purchase the police cars and still have a strong fund.

That motion passed 7-1 with McGuire voting against the new cars.

McGuire motioned to increase the donation to DEVCO back to $100,000 and that motion passed as well.

The council also approved giving $11,250 each to the Lincoln County Community Development Corporation and the Boys and Girls Home of North Platte. They also agreed to give $11,250 each to Railfest and Nebraskaland Days.

The above paragraph was corrected with the correct amounts to the Lincoln County Community Development Corporation and the Boys and Girls Home of North Platte.

Tax protesters speak

Gary Heinzle told the council that the total increase in property tax valuations in North Platte has grown 56 percent in the last 10 years. But he pointed out that the city continues to spend and taxes have not gone down.

“I don’t know how much longer citizens can tolerate this,” Heinzle said. “With how much you guys spend I don’t know how much we can afford to give you.”

Heinzle said he thought the new proposed jail was in real trouble because people are taxed so highly now.

Mike Groene, from the Western Nebraska Taxpayer’s Association, reminded the council that DEVCO was a private enterprise and not a government entity.

“DEVCO should fund themselves,” Groene said. Groene reminded the council about the Growth Fund and the Community Redevelopment Authority.

“You’ve got to consolidate what you’ve got,” Groene said. “You’ve got people out there willy-nilly passing money around and some of it has been forgotten.”

Groene asked why taxpayers should have to subsidize other people’s discretionary spending like the Iron Eagle? He urged the council to raise the rates at the Rec Center and to stop giving city employees a break to be a member.

Groene said the North Platte airport had the highest mil levy of any airport in the state. He urged the council to make it a city department.

Groene said of the like-sized communities, North Platte has nine more fire fighters than any other departments.

“And maybe a city this size doesn’t need two deputy police chiefs,” Groene said.

Groene ended his comments having about the night’s proceedings.

“I have waited for this day,” Groene said. “The day that the people who spend the taxpayer’s dollars are crying more than I am.”

Golf supporters

Former council member Glenn Petersen agreed that the Iron Eagle Golf Course should be operated as profitably as possible but said selling it would be impossible. He said the city would have to pay $2.65 million to get any other owner to take it.

Petersen, who is on the golf course committee, said the council “micromanaged” the situation and put City Administrator Jim Hawks in a “terribly awkward position.”

Jim Backenstose told the council he loved the Iron Eagle and said it had 222 members and two high school golf teams who play there regularly.

“It was a great endeavor for North Platte,” Backenstose said. “We’re giving up on it if we start cutting.”

Backenstose pointed out that the Golden Spike is 100-percent subsidized by tax dollars and that the Rec Center is subsidized.