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Parks to pursue oil and gas tax dollars
Official says oil growth impacts park services

By Alan Reed
Managing Editor
Published/Last Modified on Monday, November 23, 2009 10:44 AM CST


Williston Park Board President Larry Grondahl believes it's time for park districts in the state's 17 oil- and gas-producing counties to get a share of the dollars generated by the state's oil and gas gross production taxes.

Park districts are the only taxing political subdivision that aren't included in the state's distribution formula of these funds to counties, cities and schools.

"I don't know why park districts were left out of the loop," Grondahl said of the oil and gas tax revenue distribution legislation that is overseen by the state Legislature.

The oil and gas tax revenue distribution legislation saw a major overhaul during the 2009 legislative session that significantly increases allocations of oil and gas gross production taxes to political subdivisions.

Grondahl said discussions by some members of the North Dakota Recreation and Park Association were held prior to the 2009 legislative session about getting parks included in the funding distribution formula. It was then agreed the effort got started too late so it wasn't pursued. Grondahl hopes to get the discussion started again now so there is ample time to review the idea and get the state recreation and park association's Legislative Committee to consider it. He then hopes the recreation and park association would approve the matter and lobby for it at the 2011 legislative session.

Grondahl said park districts probably have fewer options available than any of the taxing political subdivisions to raise necessary funds.

"Even if we got 5 percent of the oil and gas tax money, for us that would mean at least $150,000 a year," he said.

Grondahl has again visited about the idea with Bismarck Parks and Recreation District director Steve Neu, who chairs the state association's Legislative Committee.

"I think the discussion now is would the state recreation park association review it as far as a legislative issue as far as a broader perspective for support of local parks and recreation and particularly, the park districts in oil-and-gas-producing counties," Neu said.

He said the growth associated with the state's oil development does have an impact on providing public park and recreation services in the oil-and-gas-producing counties.

Neu believes the first step is for the park districts in the 17 counties to develop a presentation to bring to the association's Legislative Committee.

"It's a point of introduction and garnering the support and now be out ahead of the (legislative) process," he said.

Dickinson Park Board President Mike Lefor doesn't know all of the details of the discussion prior to the last legislative session, but he believes Grondahl is on the right track.

"As these communities grow, there is a bigger demand for these programs," Lefor said of services provided by park districts.

He said there has been a huge impact on counties in the oil patch because of the energy development.

"We got a lot of different programs that people are asking for," Lefor said. "Because of the increased demands from people, we're getting more requests for programs and facilities."

He said there is no question one of the biggest issues for municipal entities is property taxes and limiting their growth while still providing the needed services.

"We've tried to tow the line as best we can," Lefor said of limiting property tax growth.

Watford City Park Board President Berton Bates believes his board would absolutely support getting a share of the state oil and gas tax revenues.

"How couldn't you be? What would be the drawbacks of pursuing this?" he said of backing a source for additional funds. "Every park district has to be looking for more sources of revenue."

As much as the Watford City park district struggles to make ends meet financially and make things nice, it definitely would favor such a plan, Bates said.

"We would like to be a part of the process if it comes to that," he said.

Dickinson Parks and Recreation District director James Kramer definitely thinks the idea is worth pursuing.

"I think if all of the other taxing entities are receiving that tax (revenue), that is a source of income that can only help in reducing property taxes," Kramer said. "Any extra revenue that can be generated for these entities assists in reducing property taxes."

He said the Dickinson park district has oil wells that are producing on its land.

"Right now that generates about $4,000 to $5,000 a month in royalties," Kramer said. "That has dropped probably 75 percent."

Since it would take a change in state law to get park districts included in the distribution formula, Kramer said finding lawmakers who are willing to research and sponsor such a bill is important.

He thinks lawmakers in his region would be interested in listening to such a proposal.

"We have some in our area who for many, many years have been involved in the state Legislature," he said. "They are good people who would be willing to listen at least."

Grondahl said he has only visited with Willliston's lawmakers about the idea.

"We're going to try to work with our legislators to try to get included in this formula," Grondahl said.
 

Comments

    longtime res wrote on Dec 9, 2009 12:13 PM:

    " An audit is way over due, Since the board never seems to have any funds for up keep. Every year, Alaska residents receive a check from the dividends of oil drilling, Give ND the same. "

    Greg wrote on Dec 8, 2009 2:59 PM:

    " Ok...you 2 are not very informed...

    #1 The Park District along with all tax entities are audited. Every 2 years. So that happens...

    #2 They always look at fee structures...the goal is to allow as many youth a chance to play and keep fees as low as possible for all other acitivites...so that happens yearly...

    #3 I am sure they are willing to hire you to umpire softball...it is a challenge to get people to help out...I know as I volunteer all the time and officiate for them....

    #4 tournaments...they have tried in the last 3 years to get tournaments here...they offer it with free bands and golf and great prizes and the local teams dont sign up...no way the bis/man or minot/dicky teams are coming here if the locals dont show up

    SO before you post...call and ask...so you dont post FALSE information...

    Thanks! "

    Jason wrote on Dec 6, 2009 9:36 PM:

    " Softballer, I am sure they are accepting applicaitaions "

    softballer wrote on Dec 2, 2009 11:59 AM:

    " I agree Dave, an audit would be a fine thing to have. Also, if the parks get some extra money, maybe they could hire some REAL umpires? Maybe we could actually make use of our wonderful softball complex and host some tournaments....of course, since there's no motel rooms available for teams to stay at....... "

    Dave wrote on Nov 25, 2009 1:45 PM:

    " I think we need an audit of the park district books. We also need to look at the fee rate and see if it is where it should be. The third item is why don't they set up a non profit foundation to help with certain projects.... "

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