Seward County Discusses Budget Strategies Amid Arkalen Ethanol Plant Tax Appeal

The Seward County Commission held a budget work session on August 18, 2025, focusing on the financial implications of ongoing tax appeals and potential budget adjustments. The meeting addressed the county's need to prepare for possible financial outcomes related to an appeal from the Arkalen ethanol plant, which has contested property tax payments dating back to 2018.

The discussion began with an overview of the current situation, highlighting that the county has not yet made a definitive decision regarding the appeal, complicating budget planning. Legal counsel from Gilmore and Bell indicated that while an application for appeal could be made, the uncertainty surrounding the outcome makes it challenging to establish a clear budgetary path.

Commissioners discussed various scenarios for budgeting, including the potential repayment amounts if the appeal were to favor the taxpayer. The estimated financial impact on the county could reach approximately $1.5 million from the general fund for the years 2018 through 2021, with a worst-case scenario exceeding $3.1 million. The implications for rural fire funding were also noted, with potential liabilities of nearly $200,000.

Concerns were raised about the fairness of the appeal process, particularly regarding the timing of the protest by the Arkalen plant. One commissioner suggested that future contracts with businesses could include clauses preventing tax protests after a specified period, although it was acknowledged that such provisions might deter businesses from signing.

The discussion also touched on the county's financial strategies, including the possibility of borrowing to cover the anticipated costs. However, commissioners expressed apprehension about increasing the tax burden on residents and the potential negative impact on the county's credit rating. The need for a sustainable financial approach was emphasized, with a focus on avoiding additional taxes for residents.

As the meeting concluded, commissioners acknowledged the urgency of the situation, noting that they are awaiting further updates from legal counsel regarding the appeal. The session underscored the complexities of budget planning in light of ongoing legal challenges and the need for careful consideration of financial decisions that will ultimately affect taxpayers.