TIF Projects Reviewed

The city of Sidney has several businesses projects within the Tax Incentive Financing (TIF) program totaling $11,640,600, according to a report presented by Sidney Finance Director Lane Kizzire.

The City's 10 TIF projects with a total estimated cost of $11,640,600. Project maturity ranges from the Clausen Project completed in 2007 and maturing Dec. 3, 2022 to two Cabela's projects – the Corporate Project completed in 2015 and the Downtown Project completed in 2014, both with maturity dates of Dec. 15, 2029.The Corporate project has an assessed value of $15,336,807 and tax paid annually of $347,811.18. The downtown project is currently assessed at about $2.5 million with a tax contribution of $54,129.86.

Tax Incremental Financing is a method of financing the public costs associated with private development project, according to neded.org/tax-increment-financing website. TIF provides a means of encouraging private investment in deteriorating areas by allowing local governments to use future property tax revenues to finance the current infrastructure costs needed to attract development.  Nebraska voters approved TIF in 1978 and the Unicameral passed enabling legislation in 1979.  The legislature has revised the TIF statutes numerous times since.

Under Nebraska law, TIF projects may be commercial, residential, industrial, or mixed use.  After a project is approved, the locality authorizes the issuance of warrants or TIF bonds to undertake public improvements in the designated area. 

TIF bonds may be issued in conjunction with revenue bond issues for water, sewer, or parking purposes and are exempt from state and federal income taxes.  Land assembled for the project is conveyed to the developer at a "fair value."  The developer proceeds with construction in accordance with an approved plan and the bonds are paid off from the increase in property taxes resulting from the development.

Natural Gas Selection Period Underway

The city council also received a report on the gas selection period now in process. Black Hills Energy customers have the opportunity to choose their gas supplier.

“It basically allows you to lock in your natural gas price,” said Sidney Electricity Superintendent Mike Palmer.

He said there are seven natural gas suppliers who are vying for customers. Palmer said ACE is the only not-for-profit gas supplier. Within the selection period, almost all companies will offer a fixed rate and a type of budget billing. There is the option of not using budget billing, essentially playing the market. However, there is the possibility of rates increasing according to market fluctuations.

“What you're electing (choosing) is your supplier,” Palmer said.

Palmer stressed that if a customer does not choose a gas supplier, they will continue to receive service.

“You will just go through the rollover rate, which is usually higher,” he said.

The selection period started March 18 and continues through April 22.