The fact of the matter is, it’s confusing. The question is written in legalese and frankly most people might misunderstand it. But, when you have someone explain it, it’s not that bad.

The question is ‘Shall the city of Kimball, Nebraska, amend its Economic Development Program as described here by appropriating annually from local sources of revenue an estimated $400,000 in fiscal years 2010-2011 through 2030-2031 or such greater amount up to .4% of taxable valuation of the city as may be generated from the sales tax previously approved for such Economic Development Program and from City property taxes, making the present annual cost of such economic development program $40 per ten thousand dollars of assessed valuation.”

“The ballot questioning amends the Economic Development Program to allow the maximum amount of funding for Economic Development program, which is .4% of the assessed value,” said Harold Farrar, City Administrator for the city of Kimball.

By reading that it can be misconstrued that the city is going to raise property tax by .4%, or, $40 per $10,000. But the truth of the matter is something entirely different.

Farrar said the question, while confusing, is not asking for a .4% increase in property tax. Instead, it is asking that the economic development program of the City of Kimball be allowed to take up to .4% (maximum allowed by the state) to help fund projects of development nature. In this case, the rail spur.

Currently, as approved by voters, the Economic Development Program takes in .05% of revenue from sales tax. This equivocates to $130,000.

What the city is asking for is to be allowed to up that to $400,000 (or an additional $270,000) out of funds from property tax. This does not mean $40 per $10,000 on this increase though.

What it means is that property valued at $100,000 would see an increase of $265.77, or $22.15 a month.  This figure is based on the money already received from the sales tax.

However, the city already has two businesses committed to the rail spur project. When you factor in their annual lease payment to the city, the property tax increase goes down. Therefore, with two businesses on the spur, a home valued at $100,000 would see an increase in property tax in the amount of $147.65, or $12.30 a month. (These figures are based on a handout from the City of Kimball)

If a third business signs on the taxes will decrease again. They will decrease ever further with a fourth. By the time a fifth business is hooked on, the property tax issue will go away because the lease revenue received will more than pay the costs.

The increase in property tax is not a new thing. Farrar said the city has assessed these figures before to help pay for other projects.

“This puts us back to where we were with the downtown improvement project in the mid 90s,” Farrar said.

But why a rail spur?

The rail spur will allow the city to solicit businesses to come to this area, said City of Kimball Economic Developer J.P. Komorny.

Nothing happens in today’s society without transportation, Komorny said.

“The clothes on your back, the materials needed to build your home, all these things had to be transported in,” Komorny said.

With a rail spur it will allow the city to woe businesses to the area that have a need for access to rail. New businesses mean new jobs, new tax revenue, and possibly new students in our schools and a general growth in our community. All of which are positive for Kimball.

The rail spur is something like a “Field of Dreams”, Komorny said, if you build it they just might come.

“This rail spur is laying the tracks to our future,” he said.

The ballot question will go before the voters on the May 11 primary election.