Keystone Pipeline Lowers Dorchester Area Property Taxes

Many readers are tired of reading about and hearing about the proposed Keystone XL Pipeline project.  Out-of-state anti-oil activists who've organized a group of disgruntled ranchers seem to make the headlines at least once a week. A sympathetic news media with an agenda -- especially the Lincoln newspaper -- religiously give this group of malcontents plenty of free press.

So why are we devoting precious space to the subject? Would you believe that Mother Jones, a left-wing publication based in San Francisco, contacted little ol' Dorchester Times to gather negative feedback on the original Keystone pipeline, which runs just east of our community?

We told Mother Jones to take a hike.  Moreover, as a result of their digging, we thought we'd remind our readers that the original Keystone Pipeline has significantly lowered their property taxes if they own real estate in the Dorchester School District.

Saline County and at least half a dozen other Nebraska counties had mostly positive experiences when the first Keystone Pipeline was constructed.  Area landowners received payments that contributed to our local economy, area businesses saw extra commerce during the recession, and ag land was carefully restored to pre-construction condition.

But there was another payoff that has lasted long after the dirt settled.  According to Saline County Treasurer Debbie Spanyers, property owners in the Dorchester School District saw a levy decrease from 2011 to 2012 due in large part to a valuation increase triggered by the new pipeline.  

Spanyers told the Times that in 2011, the general fund levy for the Dorchester School District was $1.06.  By 2012, once the pipeline's value had been assessed, that levy dropped significantly to $0.975.  This means for every $100 of assessed value in property, $0.975 was to be paid in the form of property taxes to fund Dorchester School's expenses.  This levy decrease occurred because valuations in the district increased nearly 20% -- to more than $41 million -- from 2011 to 2012.  Half of that valuation increase was due to the pipeline, alone.  

The end result was a lower property tax burden for the residents of the Dorchester School District. If you own a $100,000 home, your tax burden fell around $80.  If you own 500 acres of irrigated farm ground, your tax burden fell approximately $4,000. 

The bottom line is more than a quarter of a million dollars was paid by TransCanada instead of property owners in the Dorchester School District.  (Note: Farm ground was largely responsible for the other half of increased valuations. So you can thank TransCanada and your local farmers for keeping your residential property taxes in check.)  

For the record, Treasurer Spanyers would offer neither her opinion on the pipeline nor provide her stance on the newly proposed Keystone XL project.  But as one Dorchester resident told us:  "Don't like oil pipelines? Oppose the Keystone XL? Simple -- you can protest by paying more in property taxes.  Just make sure you walk or ride your horse to the courthouse to pay your bill."

Good advice.