Council Reviews Budget Numbers

A significant hit on the local economy and a decline on property valuation led local officials to brace for the impact on budgets.

The City of Sidney made 10 percent cuts across the board and watched to see what would happen. The good news, according to Sidney’s Finance Director David Scott, is the impact is not nearly as severe as expected.

In Tuesday night’s city council meeting, Scott announced the sales tax numbers are near the same level as last year. In his budget report Scott noted that property tax collection was 5 percent of the budget in 2016 and 2018, and 10 percent of the 2017 budget and 11 percent of the 2019 budget. In his report, he said the percentages are due to timing and recording of these revenues in the past and should even out over time.

Sales and occupation tax shows $2,906,500 for fiscal year 2016, $2,744,400 for fiscal year 2017, $2,542,950 for fiscal year 2018 and $2,262,975 budgeted for fiscal year 2019. November numbers are almost identical from 2017 to 2018. In November 2017, the City of Sidney collected $369,769. In 2018, the sales tax numbers for November are within $500 of 2017 at $369,290.

Later in the city council meeting, City Manager Ed Sadler said City services indicate the real estate market is turning up. He said since July 2016, the City of Sidney has added 779 new utilities customers. Sadler said a new utility customer could be a single person or a family. A new customer is any household who signs for new services through the City. He added that of the anticipated glut of homes for sale, there are now less than 100.

“The sales just continue. We’re down to 93 homes,” he said.

Councilman Bob Olsen said there is increasing optimism. However, he said he is not sure the optimism is spreading throughout the community. He encouraged council members to be part of the change.

“We need to spread the pollen,” he said.