Meeting Addresses LB840 Concerns, Questions

Ballots are due Tuesday on a proposal to amend the LB840 economic development plan.

The question before voters is “Shall the City of Sidney establish an economic development program by appropriating annually from local sources of revenue only, namely the presently existing sales and use tax, the amount of $300,000 each year for 10 years as well as any grants, donations or stand and federal funds received by the city subject to any restrictions of the grantor, donor or state and federal law?”

The change in the current plan does not allow for the economic development office to receive private, state or federal grants. It is limited to the definition of LB840.

Tuesday evening, the Cheyenne County Chamber of Commerce hosted a public meeting to discuss concerns and questions about the ballot proposal.

“This really is a community conversation,” Chamber President Hope Feeney said.

She introduced Melissa Norgard as Economic Development Director for the City of Sidney. Norgard said LB840 is the only way municipalities can raise funds for economic development.

Sidney voters approved the plan in 1997 with a ½ percent sales tax, generating $300,000 annually. Of that, $50,000 goes to northside projects, $50,000 to the expanded historical district and $200,000 to economic development.

“We are asking it to be revised,” she said. “No new taxes.”

She said the revision would allow the City of Sidney to accept private, state and federal funds outside of the LB840 definition.

“It really is just giving us another avenue,” she said.

She added the City cannot contribute to the LB840 fund.

“You cannot co-mingle money when it comes to LB840,” she said.

She was asked if the City has a strategy, or a list of possible donors. She said the City has not approached individuals or agencies until voters decided on the proposed change to the LB840 wording. She said she didn’t want to approach someone and then have to recall the offer when voters turned down the proposed change.

Norgard said as a city employee she can share facts about the ballot question and LB840, but not an opinion.

Feeney said the original wording was “very formal language.”

“There are grants only for economic development that we can’t accept right now,” Norgard said.

Norgard said when a business applies for LB840 funds, the application is brought before the economic development committee. If it is appoved, the project is then brought before the Sidney City Council for approval.

According to opportunity.nebraska.gov, the Nebraska Legislature adopted Legislative Resolution 11 CA in 1990. The move resulted in a statewide ballot question, an amendment to the state Constitution that would allow the Legislature to pass statutes authorizing any incorporated city, village or combination of two or more to appropriate funds from local option sales and or property taxes for economic development. The new authority was introduced during the 1991 Legislative Session as legislative Bill 840 (LB840) and took effect Sept. 6, 1991.

Deadline for ballots is 5 p.m. Tuesday, Aug. 14. Ballots can be mailed or hand-delivered to the Cheyenne County Clerk’s Office, but they must arrive by 5 p.m. Tuesday, Feeney said.