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Congratulations to the LARM Board of Directors Elected on March 21, 2018

Mayor Doug Hanson of Hickman
Jim Hawks, City Administrator of North Platte
Melissa Harrell, Administrator/Clerk/Treasurer of Wahoo
Jo Leyland, Administrator/Clerk/Treasurer of Imperial
Lanette Doane, Clerk/Treasurer of Ansley
Nathan Johnson, City Manager of Scottsbluff
Mayor Scott Getzschman of Fremont
Teresa Bartlett, Clerk/Treasurer of Beaver City
Mayor Josh Moenning of Norfolk
LeAnn Brown, Clerk/Treasurer of Oshkosh
Tom Ourada, City Administrator of Crete
Sandra Schendt, Clerk/Treasurer of Nelson
Mayor Deb Van Matre of Gibbon
Douglas Schultz, City Administrator of Curtis
Pamela Buethe, Board Member of Sarpy County SID #29

CONGRATULATIONS on being elected as a Board Member of the League Association of Risk Management (LARM)! A clear majority of the members who were present at the Special Meeting of LARM Members on March 21, 2018, voted to elect each of you to the LARM Board of Directors on a vote of 61-1, with 11 members abstaining and 95 members absent.

This election was necessary since not one of the current “purported” members of the LARM Board of Directors was properly elected by “participating members” at a “members meeting” as required by the Interlocal Agreement (Section 8.1.4.2.). The governing bodies of 57 LARM members forwarded to the League office their “Resolutions” calling for the Special Meeting of LARM Members on March 21 to elect a duly constituted LARM Board of Directors.

As you may know, the Executive Director of LARM, other LARM employees and the unelected individuals claiming to serve on the LARM Board actively discouraged LARM members from attending the Special Meeting of Members on March 21. Since a majority of LARM members was not present at the meeting, a question arose as to whether the members who attended the Special Meeting of LARM Members had the legal power to elect a Board of Directors.

Pursuant to the Interlocal Agreement which your governing body approved to join LARM, the Executive Director of the League of Nebraska Municipalities is the “Administrator” of LARM. The League asked its outside counsel on LARM issues, Cline Williams Wright Johnson & Oldfather, L.L.P., for an opinion on that issue. After researching the issue, Cline Williams has advised the League as follows:

The law recognizes a distinction between an act done by a definite body such as a board of directors, and an indefinite body, i.e., the members of an organization whose number is not fixed. In the case of a definite body, a majority must be present to constitute a quorum, and then a majority of the quorum may decide. In contrast, an act taken by the members themselves is valid if it is passed by a majority of those present at a legal meeting, no matter how small a portion they may constitute of the whole number entitled to be present. In such cases, those who stayed away from the meeting are presumed to have assented to the action of those who attended.

In accordance with this rule, and the opinion of the League’s counsel, the slate of nominees was elected at the Special Meeting of LARM Members and constitutes the duly elected LARM Board of Directors. I will be contacting you in the near future to schedule a meeting of the newly elected LARM Board of Directors. Thank you for agreeing to serve on the LARM Board!

If you have any questions, please do not hesitate to contact me.

L. Lynn Rex
Executive Director
League of Nebraska Municipalities
1335 L Street
Lincoln, NE 68508
Phone: 402-476-2829
Fax: 402-476-7052


 

The Nebraska Department of Revenue has established a procedure under Revenue Ruling 99-09-3 to review Municipal Equalization Fund estimates in order to correct any errors before the final numbers are set. The Department is required to calculate state aid by using bond and non-bond property tax request amounts certified by the State Auditor.

The Ruling states, "in recent years, there have been several errors in the numbers reported by municipalities to the Auditor on which the certifications are based. To allow municipalities to correct their errors, and still show them sufficient time to prepare their budgets" this procedure was established. Below is a link to Revenue Ruling 99-90-3.

A link to the preliminary Municipal Equalization Fund estimates for FY 2018-2019 is listed below. Please review the estimates to your city or village. If something appears out of line, you should check with the State Auditor to make sure that your property tax requests were properly certifited. Errors cannot be corrected after June 1. The link also includes the Final Eligible MEF Aid for FY 2017-2018. This information is located on the Local Government Data page on the Estimated Municipal Aid by Fiscal Year link - http://www.revenue.nebraska.gov/research/local_gov_data.html

The final amounts will be calculated in June 2018 and will be based on any legislation enacted in the 2017 Legislature and any errors discovered since March. Any errors have to be corrected by June 1. These final numbers will be sent to you in mid-June.

Preliminary Municipal Equalization Fund Estimates for FY 2018-2019

Revenue Ruling 99-09-3

If you have questions about this procedure, please contact:

Richard Bouma
Program Analyst
Nebraska Department of Revenue
301 Centennial Mall South
Lincoln, NE 68509-4818
Phone: (402) 471-3079
richard.bouma@nebraska.gov