School and county officials say allocation of state‑assessed utility value shrank local tax base, forced budget adjustments

Officials from USD 332, Pratt County and other local leaders told the committee a reallocation of value for a state‑assessed utility, Northern Natural, reduced the local assessed valuation that funds the school district and county services.

Kelly Armburger said USD 332’s taxable valuation decreased by roughly $22 million over two years and that the Pratt taxing unit’s valuation fell from about $30 million to $17 million after changes tied to Northern Natural. “We went from 77 … to 55,000,000,” Armburger told the committee, summarizing how the district’s capital and operating categories were affected. She said officials had to delay purchases, tighten budgets and use carryover balances to reduce tax‑rate impacts for 2025.

County Commissioner Jack Timmish and school board member Jason Oesner described how a change in allocation and apportionment methodology — or in how units of equipment were assigned to counties — translated into a dramatic decline in movable equipment values reported to the district. Oesner said in one taxing unit reported “movable equipment went from 52,000,000 … and that has went to 18%,” and that the resulting valuation backed down to an amount he estimated near $4 million.

Officials told the committee they had difficulty getting timely explanations from appraisal administrators and that earlier notice of material swings would allow local governments to plan and avoid service reductions. They asked the committee to examine allocation and apportionment rules for multijurisdictional, state‑assessed utilities and to improve communication between utilities, PVD and local taxing units when changes are anticipated.

Representative and community members asked PVD staff and Northern Natural representatives to work with local officials to clarify the mechanics of the allocation adjustments and provide documentation the district could use in budgeting and public outreach.