NLB Blog

As the second quarter comes to an end, all eyes are once again on the FED.  Although we have gotten some relief from inflation, it still remains stubbornly high.  As a result costs of everything continues to remain elevated.  This has become very apparent when it comes to housing costs and the resulting property tax values. 

I have received many calls asking what can be done to get property taxes reduced along with many complaints regarding rising property values.  It is important to keep in mind that County Assessors have a legal responsibility to value homes at between 93% and 100% of market value. In many cases, this increase in value has nothing to do with improvements to the property, but is totally related to increases in the general market values due to costs to new building costs and the lack of available housing.  This is a perfect example of the perils of inflation.  To many who are looking to sell, this is a great thing.  But like many, you bought your home to live in and have no interest in selling.  For those on a fixed income, rising real estate taxes can have a significant impact on disposable income. 

It is important to remember that property values are only one part of the equation when determining your property tax bill.  The second part of the equation is the mill levy.  Values are determined as of January 1 of each year and the mill levy is not determined until after each of the local taxing authorities have set their budgets.  Once their budgets are set, the County Treasurer then determines the mill levy necessary to generate the revenue sufficient to fund the budgets.  As long as the rate of budget increases are less than the rate of property values (including new construction), the mill levy should go down, and property tax increases will be much less.  Additionally, the recent changes to tax policy in the Legislature this past session will increase State aid to all public schools which should help to reduce reliance on property taxes.  Additionally, everyone needs to remember to apply for the income tax rebate that the state rebates back to property tax payers against taxes paid to their public school and their community college.  Additionally, the state will now begin paying for the operating expenses of Community Colleges.  Once their current bonds are repaid, Community Colleges will no longer be able to assess property taxes.  These changes will not eliminate property taxes, but will help reduce them.  

Meanwhile time will tell how quickly the economy begins to cool and inflation begins to fall to the Fed target level of 2%.  Until then, rates will remain elevated.  The yield curve however remains inverted and should continue to be until we see clear evidence of a recession.  At that time, the FED will begin reducing rates to a more normal level. 

It is important to note that the headline CPI (Consumer Price Index) has dropped from 4.9% to 4.1% year over year.  Meanwhile, the year over year “Core” CPI has dropped from 5.5% to 5.2%.  This is a very good sign that inflation is coming down.  This will be welcome news to anyone living on a fixed income.  We have clearly seen the destructive impact that inflation can have on the economy.  Hopefully, we are on track to get it under control.   

 As always, I want to thank you for trusting us to be your bank of choice.  If you have any questions or concerns, feel free to reach out to us at any time. 

BENEFITS THAT GO BEYOND CHECKING

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NebraskaLand Bank Recognized by the Nebraska Bankers Association

The Bankers Association recently recognized several Nebraska banks and a banker at the 2023 NBA Annual Convention in La Vista with Leaders in Financial Education (LiFE) Awards. These awards are given in recognition of outstanding contributions to financial education in their respective communities.

NebraskaLand Bank was recognized for the NebraskaLand University Program. A scholarship program that provides high school seniors financial literacy courses and scholarship opportunities.

NebraskaLand Bank was also recognized at the NBA 133rd Annual Convention receiving the 25-year award for our community bank. President and CEO Mike Jacobson expressed his gratitude for the award, stating, “These milestones do not occur without the help of a great staff. I am grateful for my bank family. The NLNB staff is the best at community service and work ethic! They are all very dear to me. I also thank my loving wife Julie and my children Mary and Josh for believing in me and supporting the venture I made in 1998. I also want to especially thank Kim Schroll, Sally Gentleman, and Krista Heiss for their invaluable insight, vision, and commitment from the very beginning.”

At NebraskaLand Bank, we are committed to promoting financial education and literacy in our community. We are honored to be recognized by the NBA for our efforts and will continue to work tirelessly to provide the tools and resources our customers need to make informed financial decisions.

Grilling for Good

When you see our grill in the community, know that it’s for a good cause. We provide our Grill, Food, and our employee volunteers to local non-profits, churches, and school events at no cost.* Our employees have gifted over 500 hours of volunteer hours so far just this year!

*Many aspects are considered when agreeing to grill events including griller and employee volunteer availability and prior commitments. Not all grill requests are guaranteed to be approved.