Cargill's tax request could cut schools' income by $80,000

Marshall School District Superintendent Rob Gordon and representatives of Cargill Meat Solutions met Tuesday, July 18, with the Saline County Board of Equalization to discuss a request by Cargill to reduce its assessed valuation, which could cost the school district $80,000 in tax revenues.

The board asked Gordon to appear because the school district budget would be affected most by the requested adjustment.

The request refers to the valuation of meat packaging equipment. The original appraised valuation determined by county Assessor Margaret Pond was $13.4 million with an assessed value of $4.2 million.

Cargill is requesting the appraised valuation be reduced to nearly $7.3 million, which would reduce the assessed value to $1.8 million.

The adjustment could reduce the school district's tax revenues from nearly $144,000 to more than $63,000, according to Pond.

"As far as the district is concerned, the issue is timing," Gordon said. He noted that the school district's fiscal year begins July 1, so budget assumptions are based on valuation figures available in June.

Cargill tax representative Lauri Poe noted that the company is in compliance with state regulations for challenging property valuation. The problem, according to board chairman Norvelle Brown, is that the school district's budget calendar doesn't mesh neatly with the valuation appeal process calendar.

The loss of revenue would not have a serious effect on the district's $22 million budget, Gordon said, because there are reserves available to compensate.

County Clerk Ken Bryant noted that the adjustment to Cargill's equipment valuation would not likely have a significant impact on the revenues of other tax entities in the county nor cause any significant increase in the tax rate.

Board members Becky Plattner and Dick Hassler asked whether there were any possible compromises available.

"What can we do to make this work for everybody?" Plattner asked. "Is there a middle ground here?"

Poe said Cargill had done a very thorough job analyzing the valuation and had based its adjustment request on a method that allowed for higher valuation than other methods likely would have.

She told the board that the valuation would be reviewed earlier next year in an attempt to avoid the need for a late adjustment request.

Lee Bonecutter, Cargill general manager, assured Gordon that the company would still be a strong supporter of the school district, and Gordon agreed that the district and the company have a good relationship.

The request was tabled for a second time while the board considers options.

Contact Eric Crump at

marshallfaith@socket.net