Voters Approve LB840 Changes

Sidney voters made their decision Tuesday, allowing the City of Sidney to modify the LB840 program to include private and public funding sources.

Presently, the City's economic development plan receives funds only from a tax within the LB840 bill. Sidney voters approved extending the LB840 economic development plan through 2027.

A few months ago, City staff talked with the city council about amending the economic development plan to allow funds from sources other than the tax. The scenario brought before the council is if a person wants to offer an endowment, or a company wants to support a cause, the City would have to decline the offers because they can only accept LB840 funds.

A special election was held with polls closing Tuesday evening. Results came back with 934 voters supporting the changes and 458 against.

“Honestly, I didn't know what to expect,” said Economic Development Director Melissa Norgard.

She said she's excited about the opportunity to seek more funding for economic development.

Norgard said the proposal will have to return before the city council to be finalized. The City will be able to start receiving funding Oct. 1. However, with the modification approved, Norgard can begin meeting with potential donors.

Cheyenne County Chamber of Commerce President/CEO Hope Feeney was also excited by the news.

“I was really happy to wake up to the news,” she said Wednesday.

She said she is thankful to everyone researching the issue and asking questions, and to those who supported the ballot question.

She said the Chamber's next step is to offer Norgard support in any way needed.

Under the present plan, the City of Sidney receives $300,000 annually from a ½ percent sales tax. Of that, $200,000 goes to economic development, $50,000 for north side projects and $50,000 for projects within the historic district.

Economic Development is funded entirely by the LB840 tax. Norgard said earlier this month that the City “cannot co-mingle money when it comes to LB840.” The change approved by voters Tuesday will allow the City to receive state, federal and private funds to further economic development.

LB840 dates back to the Nebraska legislature adopting legislative resolution in 1990 that resulted in a statewide ballot question and an amendment to the state constitution that allows the Legislature to pass statutes authorizing any incorporated city, village or combination to appropriate funds for economic development. It was introduced in 1991 as Legislative Bill (LB) 840 and took effect in 1991.