As my first Blog post – I want to focus on the Lower Platte South NRD budget process. NRDs are what is called “local government entities” – they answer to only the laws of Nebraska and you, the voter.
As a result, the only budget oversight they receive is also from the public. Before a budget is approved, it must be presented for public hearing. Once that hearing is complete, then the NRD is free to move forward.
For this next budget year (July 2026 – June 2027), the NRD Board has proposed a 21.8% increase in property tax levy. That is on top of a 12% increase the year before – so compounded, a 36% increase in property tax assessments in two years.
Is this increase justified? Maybe – but the NRD Board does little to explain their request. They simply publish a 10-page spread sheet and expect you to figure it out (If you happen to be tracking the LPSNRD website, meeting minutes, subcommittee reports…..).
The public hearing was on August 11 – and I was the only member of the public to both attend and testify. I focused on the need for transparency in three areas:
- Lack of Priorities and Objectives in the budget
- Accounting for the large cash reserves held by the LPSNRD
- Explain why, in a time when State Government is trying to reduce costs, the NRD must increase.
If you are interested in more detail, below is my complete testimony.
While I did receive some feedback from the NRD two days after this hearing, it focused on how complex the budget is and that they spend months working on its development.
Of course, that doesn’t replace the need to justify their work to the people footing the bill.
Testimony to the Lower Platte South NRD Finance Committee – August 11, 2027
“Good evening. My name is Mark Patton, and I live in Eastern Cass County at 8459 Burr Oak Drive. Thank you for this opportunity to provide comments on Draft 2.1 of the Lower Platte South NRD Fiscal Year 2027 Budget.
“I’ve spent considerable time reviewing the proposed budget. I appreciate the amount of work that goes into preparing it, and my comments are intended as suggestions to improve transparency and effective public engagement on the budget process.
“Unlike most state agencies, an NRD is governed locally and is directly accountable to the citizens it serves. For that reason, I believe the annual budget should do more than satisfy accounting requirements. It should clearly communicate the District’s priorities, financial commitments, and long-term plans in a way that an interested taxpayer can readily understand.
“I do not intend to comment on individual budget line items. The supporting information for the budget structure is limited, making it difficult for members of the public to reasonably evaluate the purpose or priority of proposed expenditures and transfers.
“With that in mind, I would like to offer three recommendations for the FY2027 and future budgets:
- Clearly communicate the District’s general budget priorities and objectives for the fiscal year.
- Include a Capital Reserve and Sinking Fund Report explaining the purpose and status of each reserve.
- Better align the budget presentation with Nebraska’s current emphasis on transparency and fiscal stewardship.
1. Budget Priorities and Objectives. The proposed budget provides a detailed accounting of anticipated revenues and expenditures consistent with accepted accounting practices. What it does not provide is a concise explanation of the District’s priorities and objectives for Fiscal Year 2027.
I also reviewed the District’s 2025–2030 Long Range Implementation Plan. The LRIP describes program goals, projected FY2026 activities, and multi-year budget expectations. However, it is organized by subcommittees and program areas, not aligned to the stated goals, and appears intended to support a Master Plan – which does not appear to be available on the web site – and does not explain or prioritize annual budget expenditures.
As a result, a member of the public is left to infer – or guess – the Board’s priorities from hundreds of pages of budget tables and planning documents.
For example, it appears that the Deadman’s Run Flood Reduction Project is one of the District’s largest planned investments for FY2027, yet neither the budget nor the LRIP explains why this project represents a principal priority for the coming fiscal year.
I believe this could be addressed with a simple one- or two-page introduction to the annual budget that identifies the Board’s principal priorities, major initiatives, and fiscal objectives for the coming year.
Such a summary would not change the budget or the accounting – but would help taxpayers better understand the reasoning behind the annual budget and associated tax assessment.
2. Capital Reserve and Sinking Fund Report
The District makes extensive use of capital reserves, or sinking funds, to accumulate resources for future projects. Building reserves for major capital investments is prudent financial management and an appropriate way to plan for long-term infrastructure needs.
However, long-term planning should also be transparent. Taxpayers deserve to understand not only where public dollars are spent, but why current year tax dollars are being reserved.
I recommend that the annual budget include a brief Capital Reserve and Sinking Fund Report describing each reserve fund, including:
its purpose,
current balance,
funding strategy and goal,
anticipated project schedule,
expected cost-sharing,
and estimated completion.
Such a report would allow the public to understand not only how much has been reserved, but the Board’s long-term plan for using those funds.
This need not be a lengthy document. In fact, I would expect each reserve fund to correspond directly with the priorities identified in the annual budget, providing a clear connection between today’s tax request and tomorrow’s capital investments.
In this budget, the District’s planned total cash reserves exceed the annual property tax requirement by a significant margin. That fact alone does not suggest poor financial management. It does, however, underscore the importance of clearly explaining to taxpayers why those reserves are being accumulated and how they are expected to be used.
A Capital Reserve and Sinking Fund Report would provide taxpayers with a clearer understanding of the District’s long-term financial planning.
3. Demonstrating Fiscal Stewardship
Across Nebraska, there is an increasing public expectation that all levels of government clearly demonstrate fiscal restraint, prudent stewardship of taxpayer dollars, and transparency in budgeting.
Recent executive actions by Governor Pillen to drive restraint in state government budgets reflect that broader public discussion, even though they do not directly apply to Natural Resources Districts.
The proposed FY2027 budget represents a significant increase over the prior fiscal year. When proposing higher expenditures or tax requirements, I believe the budget should also explain the circumstances that make those increases necessary and how they support the District’s highest priorities.
Additionally, the FY2027 budget is compared to the FY2026 budget – yet the FY2026 budget year is closed. A more accurate measure therefore would be to compare this budget request to actual requirements of FY2026, which appear to have underrun the budget.
Providing that additional context would strengthen public confidence that the District’s budget reflects both sound financial planning and responsible stewardship of taxpayer resources.
“In closing, thank you for the opportunity to provide comments on the proposed FY2027 budget.
A budget is more than an accounting document. It is the Board’s primary communication to the public about how it intends to steward public resources.
I recognize that preparing a budget of this size and complexity is a significant undertaking. My recommendations are to help the District communicate more effectively with the taxpayers it serves.
Thank you for your time and consideration.”
This is the first of what I hope to be many posts to this blog in the coming weeks and months, maybe years. Please share with anyone who may find this content interesting.
Thank you for reading!
-Mark