A Look Back At 2009

SIDNEY – Happy New Year from the staff of The Sidney Sun-Telegraph!

Dr. Carl Sagan, an astronomer, once said, “You have to know the past to understand the present.” The newspaper industry is all about recording today’s history as it happens. Over the next several days, we will guide you in a trip down memory lane over a year rife with high unemployment and bad economic news.

Money was an obvious problem as the recession continued to deepen. In a Jan. 2, 2009, article, city officials addressed an issue of high property taxes.

“Property Taxes A State Problem”

Two words. Property tax. For most homeowners in Cheyenne County those words bring up a whirlwind of emotions, all of which are not pleasant to say the least.

What residents may not realize is that the property tax issue is not a city or even county problem, it is a state problem.

City Manager Gary Person said the people have to realize that if they want that many governmental units, they have to be willing to pay for them.

“The only thing that will help alleviate high property taxes long term is massive statewide consolidation of governmental units,” he said. “Every time there is a statewide call to eliminate smaller school systems or consolidate counties there is a massive rebellion by the people.”

While financial concerns are a daily driving motivator for people, its acquisition became harder over the year. By Jan. 10, there were 11.1 million Americans unemployed.

“11.1 Million Unemployed In New Year”

New figures released by the U.S. Department of Labor on Friday painted a bleak picture of the American economy, and stock markets suffered a turbulent morning with falling stocks as investors grappled with the new numbers.

According to the DOL, there are 11.1 million unemployed people nationwide. That increased the 6.8 percent unemployment rate for November to 7.2 percent in December, the highest it has been since 1993. The DOL reported on Friday that 524,000 non-farm payroll jobs were slashed in December, but 632,000 people became unemployed for the month.

Financial concerns that affect normal, everyday citizens ultimately end up affecting the city, county and state as well. On Jan. 13, we penned an article stating $1.2 million in taxes went unpaid.

“Unpaid Vehicle Taxes Total $1.2 Million”

When non-Nebraskans decide to plant their roots in the state, one thing most do not realize is that Nebraska ranks among the highest in motor vehicle tax.
While Nebraska is among 16 states that use the same method of vehicle taxation, some states do not require motor vehicle tax at all.

In fact, the state has reported about a potential $1.2 million loss this year in unpaid vehicle taxes due to its current method of taxation.

Those caught illegally licensing vehicles outside the state were required to pay back the state’s lost fees and taxes as well as paying a penalty fee.

As the turmoil continued, America found itself experiencing an historic moment as President Barack Obama was sworn in to the White House. On Jan. 17, The Sidney Sun-Telegraph recognized not only the importance of that moment, but also its proximity to Martin Luther King Day.

“King, ‘I Have A Dream;’ Obama, ‘Yes We Can’”

Memphis, Tennessee. April 4, 1968. The Lorraine Motel. At 6:01 p.m., a gunshot echoed through the parking lot, and Martin Luther King, Jr. fell. Just more than an hour later, the news released from St. Joseph’s Hospital would be that King had died. He was assassinated.

Five years prior to that night, King stood before the Linoln Memorial in Washington and gave what is known as one of the finest speeches in the history of American oratory.

“I have a dream that one day this nation will rise up and live out the true meaning of its creed: ‘We hold these truths to be self-evident, that all men are created equal,” he told America during the March on Washington.

“Yes we can,” said President-elect Barack Hussien Obama, more than 40 years later.

Elected by a landslide vote in November 2008 against opponent John McCain, President-elect Obama will complete his rise through American politics when on Jan. 20, 2009, he is sworn into office as our 44th president.

Just days later, on Jan. 22, many Americans, including some here in Sidney, were struck with yet another financial problem.

“Credit Card Processor Breach Hits Home”

Malicious software discovered last week in the systems of a major U.S. credit card processing company may have led to one of the largest security breaches in history affecting an unknown amount of people.

Residents of Sidney and Cheyenne County are being notified by credit card companies and local banks if their numbers were stolen. The Sidney Sun-Telegraph became aware of affected residents when one of its employees was phoned by a local bank and told that his debit card was one of those that had been stolen.

Payments processor Heartland Payment Systems Inc. said Tuesday its system used to process Visa, MasterCard, American Express and Discover Card transactions was breached last year, but asserted that merchant and customer data were not affected.

However, it’s not all doom and gloom. On Jan. 28, the Sun-Telegraph learned that as unemployment rates rose, so too did college student enrollment.

“Bright Spot In Gloomy Econopmy”

If you have followed the unemployment rates at all, then you wouldn’t be the least bit surprised to know that student enrollment in college courses are up as jobs are disappearing by the thousands.

In fact, Monday dealt a hard blow to the already shaky arena as unemployment spiked in all states nationwide in December for the first time as companies shed hundreds of thousands of positions, federal data released Tuesday shows.

President at Western Nebraska Community College-Sidney Deanna Volkmer said Sidney’s numbers are up for the Sidney campus this year.

Another bright spot for Sidney was the opening of the FedEx site in the I-80 business area. That story ran Jan. 30.

“The ‘Perfect Exchange”

Sidney seems to be bucking the national trend of job cuts as the local business community celebrated the ribbon cutting of the new FedEx site near the Comfort Inn Thursday.

This operation will employ 20 drivers who will make the area their home.
City Manager Gary Person said he is hopeful that nearly 80 FedEx jobs will be created in the next few years.

February was a month of ups and downs, and there was quite a bit of time spent on trying to convince Nebraska legislators that there were problems with more than one bill affecting municipality finances.

On Feb. 10, we published an article regarding Senator Ken Schilz proposed bill to allow cities to opt out of the state’s tax refund program.

“Schilz To Sidney’s Rescue?”

For more than a few months, there’s been a war cry heard from Sidney city offices directed at the state of Nebraska about the refunding of local sales tax dollars for its tax incentives programs. Now it appears that someone in the legislature heard those cries and is acting on them.

Senator Ken Schilz of District 47 recently proposed LB640, an act relating to the Nebraska Advantage Act that amends certain sections of the advantage act to allow cities an option on whether local option sales and use tax is refundable – it allows cities to opt out of the refunds.

A hearing on the bill has been set for March 18, according to City Manager Gary Person. Schilz was unavailable for comment.

As problems existed with the refund program, Sidney city officials brought up another issue with funding. On Feb. 14, the city declared the Nebraska state aid formula flawed.

“City Says State Aid Formula Flawed”

Is the city of Sidney getting the short end of the stick when it comes to municipal state aid? City Manager Gary Person says “yes, we are,” and the numbers he’s compiled tell the story.

Person has been keeping a sharp eye on the municipal state aid issued to Sidney over the years. Last year, he compiled a multiple-year study and brought it before city council. At that time, he said the loss of state aid was the primary cause of local city property taxes rising 81 percent over the last 10 years.

Person told The Sidney Sun-Telegraph on Friday that Nebraska does not treat first-class cities across the state fairly when it comes to municipal aid.

On Feb. 12, we reported even more layoffs in our area.

“Layoffs Strike Cheyenne County Again”

With 11.6 million Americans collecting unemployment insurance, and 598,000 nonfarm payroll job cuts in Jan., there seems to be no light at the end of the tunnel for the national economy. The national unemployment rate hit 7.6 percent in Jan., according to the U.S. Department of Labor.

There wasn’t much news of company layoffs locally in December, but already this month two companies in Cheyenne County have announced job cuts.

Among those is ADC, a worldwide wire and connectivity company that locally let 25 employees go on Tuesday due to the economic troubles. Also slashing jobs was The Egging Company, located in Gurley.

March kept our reporters busy with news of program starts and funding issued by the federal government. On March 5, the Sun-Telegraph reported Sidney’s share of $2.75 million.

“Sidney Receives $2.75 Million”

Gov. Dave Heineman on Wednesday announced the distribution of American Response and Recovery Act funding for wastewater-related projects in Nebraska. Funding decisions were made in consultation with the Legislature’s Appropriations Committee, officials said.

The money couldn’t come at a better time for Sidney, since the city has been working on upgrading or replacing the current wastewater facility in order to be in compliance with the Nebraska Department of Environmental Quality regulations.

According to Heineman’s office, Sidney is scheduled to receive $2.75 million from the ARRA funds with half of that in the form of a grant, and the other half in the form of a zero percent interest loan. The city will be responsible for the remaining $2.75 million of the total expected project cost.

A day later, it was reported that Obama’s administration was unveiling a new housing program that sent even Sidney banks into a scramble to get information.

“Obama Rolls Out Housing Program”

With the national unemployment rate continuing to rise, and more Americans losing their homes every day, the federal government has enacted a plan designed to target responsible homeowners to curb home loss.

That plan has bankers –even Sidney bankers – scrambling to absorb the information necessary to determine if their banks are affected and to what degree. According to the government Web site, http://www.financialstability.gov, banks received detailed program requirements March 4 and it might be awhile before they are fully operational.

“It will take some time to absorb the information and to see how that affects us,” said Steven Smith, president of Sidney Federal Savings and Loan. “More information about the programs came out this morning.”

Fortunately on March 7, we were able to report that Cheyenne County maintained a low unemployment rate.

“Jobless Rate In County Still Low”

A deepening recession has led cost-cutting employers nationwide to slash yet another 600,000-plus jobs, which helped the national unemployment rate jump from 7.6 percent to 8.1 percent, officials told Washington on Friday. That’s nearly as high as December 1983, when unemployment reached 8.3 percent.

Cheyenne County experienced a rise in unemployment rate, but only one-tenth of a percentage point. According to Nebraska Workforce Development, Cheyenne County’s unemployment rate rose from 2.8 percent in November to 2.9 percent in December – an increase of three people.

March was a busy month for Sidney City Council as it opened its wastewater treatment plant project for bidding as reported March 12.

“Council Smooths Way For Plant”

It’s been a bumpy road for the city and engineers working on the Sidney wastewater treatment plant project. From troubles with Nebraska Department of Environmental Quality to extremely high bids, it seemed the project was nothing but trouble.

However, during city council’s regular Tuesday night meeting, engineers with Olsson Associates were given the go-ahead nod to put the project out to bid for a second time. This time, the project out to bid has three options, including the construction of a wholly different type of plant than the city currently has.

The project was further assisted with funds from the American Recovery and Reinvestment Act. Sidney’s project was awarded $1.375 million grant, a $1.375 million zero percent interest loan and the remaining $2.75 million would be funded with a 3 percent loan. When the project first went to bid, Baxter said the loans would have been more than 4 percent.

It was at that same meeting that the continuing issue with plumbers and handymen took off.

“Plumbers Vs. Handymen”

It was back and forth with long discussions on water heaters at Sidney City Council’s regular Tuesday session as the council, city inspector, plumbers and handymen hashed it out over a proposed new ordinance limiting the work a handyman can legally do.

An issue between the plumbers of Sidney and the handymen was first brought to council’s attention in July 2008 when representatives of both groups appeared before council to discuss a 20-year-old plumbing ordinance.

The ordinance outlined who needed a license, the requirements of the licenses and what plumbing projects required a permit.

City Inspector Jim Pelster presented council with a draft ordinance on Tuesday, upon which action was tabled pending further revision.

Federal funding also came through to help out our local authorities as reported March 14.

“WING Receives Stimulus Funds”

Sidney Police Chief Larry Cox last year approached city council to ask for more funding for the Western Intelligence and Narcotics Group after he was notified that federal dollars for the program had been slashed. Council agreed to make up the difference, but now it seems the city is off the hook.

According to Cox, Sidney’s satellite WING operation will receive $11,251 from the Obama Administration’s economic stimulus plan. That’s enough funding to get the program through September, Cox said.

On March 18, the Sun-Telegraph featured a story on “sexting” that proved shocking to some parents.

“Is Your Student Sexting?”

A disturbing trend that recently began picking up steam is an act called “sexting.” Sexting is defined as the sending and receiving of lewd or nude photos or videos via the text messaging option on a cell phone.

When done between two consenting adults, there’s no foul play. However, when teenagers get in on the act, charges could be filed, up to and including the manufacture of child pornography, distribution of child pornography, possession of child pornography and contributing to the deliquency of a minor.

That same day, we reported a jail break that ended with Good Samaritans tackling the inmate.

“Prisoner Escapes Cheyenne County Jail”

A 21-year-old South Dakota man who broke out of Cheyenne County Jail on Tuesday is back in the custody of law enforcement, authorities said.
John D. Way, of Belle Fourche, S.D., escaped over the exercise yard wall at 3:30 p.m. Tuesday, according to Sheriff Darrell Johnson. He was apprehended at approximately 5:33 p.m.

Johnson said Way crawled up the exercise yard wall, pushed through the razor wire that tops the wall and jumped onto the roof of the courthouse. It was there that he stripped from his jailhouse clothes before jumping from the roof, Johnson said.

Way was reportedly seen  in his boxer shorts in the area of 9th Avenue and 10th Avenue by King Street and Jackson Street in an alley. At approximately 5:10 p.m., authorities spotted him running northbound from a residence on 6th Avenue near King Street.

Who was it that Way would face? Our new judge as reported on March 24.

“New Judge Expected On Bench By Mid-Month”

The wait is almost over for the 12th Judicial District. Last week Derek Weimer, 34, of Gering, was appointed to the bench by Gov. Dave Heineman to replace Kristine Cecava, who was not retained by the voters in November. Weimer is expected to be hearing cases by mid-April.

March also brought about a surprisingly good news story that set the tone of the year’s harvest. A decade of drought came to an end last year, as reported on March 26.

“Decade Of Drought Over”

Is Nebraska’s near-decade drought drawing to a close? The outlook is good, but there are parts of the state where the conditions are right to slip right back into one. The good news coming from the National Drought Mitigation Center at the University of Nebraska-Lincoln is that for first time in eight years, Nebraska is entering the growing season without a stage of drought.

Mark Svoboda, a climatologist with the center, told The Sidney Sun-Telegraph on Wednesday that 11 percent of the state continued to be classified as D-0, which means the area is abnormally dry, but not in a stage of drought. The majority of the D-0 stage is in the Nebraska Panhandle covering Cheyenne, Kimball, Scotts Bluff, Morrill, Banner, Dawes, Box Butte and Sioux counties.

The dry spell has been felt by Nebraska and Sidney residents, not just in water usage, but also in electric bills. In recent years, the city of Sidney has had to raise electricity rates to cover its costs as suppliers have upped the rates due to drought.

See Tuesday’s edition of The Sidney Sun-Telegraph for Part II.