ND State Soil Conservation Committee
North Dakota State University - NDSU Extension Service  

Supervisor's Handbook Section- District Operation:
This sub-section contains the following topics:

Recommended Policy Guidelines for Expenditure of Soil Conservation
    District Funds for Promotion, Education, and Recognition Activities.
Mill Levy Authority
Borrowing Money
Truth in Lending Law
Assignment of Payment    

RECOMMENDED POLICY GUIDELINES FOR EXPENDITURE OF  
SOIL CONSERVATION DISTRICT FUNDS FOR PROMOTION, EDUCATION, AND RECOGNITION ACTIVITIES

  These recommended Policy Guidelines were developed by the North Dakota State Soil Conservation Committee in accordance with Section 4-22-26 of the North Dakota Soil Conservation Districts Law.  

Back to top

MILL LEVY AUTHORITY   
N.D.C.C. 4-22-26 (17) 
The 1983 Legislative Assembly granted the Supervisors of North Dakota Soil Conservation Districts the authority to levy a tax, not exceeding one mill, for the payment of the expenses of the district, including mileage and other expenses of the supervisors, and technical, administrative, clerical, and other operating expenses.  This authority is provided in the North Dakota Soil Conservation Districts Law, Section 4-22-26, North Dakota Century Code, with an effective date of January 1, 1983.  The supervisors wishing to exercise their taxing authority shall:  (1.) Complete the district's budget and adopt the annual tax levy.  (See Analysis of Revenue and  Expenses - Schedule B, SFN 3851)  (2.)  No later than July 1 of each year, provide one certified copy of the levy as adopted to the county auditor of each county in the district.  (See Annual Budget - Schedule A, Certificate of Levy, SFN 3850 and Annual Budget - Schedule C, Insurance Reserve Fund/Payment of Judgment, SFN 50443).  Schedules A, B and C are available from the office of the State Soil Conservation Committee upon request.

Upon filing a certified copy of the levy, the county auditor of each county in the district will extend the levy upon the tax list of the county for the current year against each description of real property lying both within the county and the district in the same manner and with the same effect as other taxes are extended.  The county treasurer collects all taxes and turns the funds over to the soil conservation district on a monthly basis.  According to a February 21, 1992, Attorney General opinion, "Soil conservation districts are taxing districts because they are authorized to levy taxes under North Dakota Century Code (N.D.C.C.) Section 4-22-26(17).”  

N.D.C.C. § 57-02-01 (9) says, “Municipality” or “taxing district” means a county, city, township, school district, water conservation or flood control district, Garrison Diversion Conservancy District, county park district, joint county park district, irrigation district, park district, rural fire protection district, or any other subdivision of the state empowered to levy taxes. Therefore, soil conservation districts are also subject to Title 57 because they are subdivisions of the state and have the authority to levy taxes.

N.D.C.C. § 57-15-31 provides the formula for determination of a levy. This determination is made by considering the estimated expenditures for the current fiscal year and the required reserve fund.  Id.  The municipality may only levy for what is actually needed for the fiscal year.  Id.  This process eliminates municipalities from creating a big “nest egg.” 

N.D.C.C. § 57-15-27 provides that a municipality authorized to levy taxes may include in its budget an interim fund. The interim fund is to be carried over to meet any requirements of the next fiscal year that may become due prior to the receipt of taxes in that fiscal year.  Id.  The interim fund cannot be in excess of what may be reasonably required to finance the municipality for the first nine months of the next fiscal year.  Id.  The interim fund cannot exceed three fourths of the current appropriation for all purposes other than debt retirement and appropriations from bond sources.  Id. 

Ch. 57-15 entitled “Tax Levies and Limitations.”  N.D.C.C. § 57-15-02 provides for the determination of rate:  Determination of rate. The tax rate of all taxes, except taxes the rate of which is fixed by law, must be calculated and fixed by the county auditor within the limitations prescribed by statute. If any municipality levies a greater amount than the prescribed maximum legal ra