City Set to Approve Sales Tax Proposal

The Sidney City Council met in a work session June 6 to discuss renewing the City's ½ cent sales tax. In the work session, City Manager David Scott said the proposal was first brought before the city council in 2012, and approved by voters in November of that year.

Scott asked council members how the tax revenues should be divided among city projects, if the tax is approved by voters. Scott stated that ten years ago, 50 percent of the funds went to street, 30 percent went to the pool, 12 percent went to golf, 5 percent went to the SPNRD and 8 percent went to parks. Scott asked Council how they would like the percentages split out, if the voters decide to renew the tax proposal. Scott suggested to Council that 50 percent of the tax be applied to street, 20 percent to the Aquatic Center, 10 percent to golf, 5 percent to storm water project, 5 percent to parks and 10 percent to housing infrastructure. Councilman Brad Sherman asked what the options would be if the wording would be changed on LB840 so that funds could be used for housing infrastructure. He said he wanted to be able to say where the housing money was to be distributed.

In the work session, Mayor Roger Gallaway said the money would be used as incentive for developers. He added the proposed tax is not designed to replace the budget.

On Tuesday, June 14, the city council convened with Gallaway absent. The council considered a resolution “renewing a local option sales tax proposal and certifying said proposal to the Cheyenne County Clerk to place on the Nov. 1,2022 ballot.” As the council was ready to proceed with a vote on the proposed tax renewal, City attorney J. Leef questioned when the public hearing was held. The resolution states “after public notice, a public hearing has been held at which said sales tax proposal was presented to receive public comment and discussion.”

No public hearing had been held between the work session and council meeting. Decision on the proposal was tabled until the next council meeting when a public hearing will be scheduled followed by a decision by the council.

As proposed the sales tax would increase from 1.5 percent to 2 percent with 50 percent of the revenue directed to Street Improvements at an anticipated $425,000 annually, 25 percent would go to the Aquatic Center infrastructure improvements at an anticipated $212,000 annually, 5 percent would be allocated for improvements at Hillside Golf Course estimated at $42,500 annually, 10 percent toward storm water mitigation projects with the South Platte Natural Resources District to alleviate flood-prone areas and 10 percent would be for Parks infrastructure improvements.

The council also approved Sarah Elston as the newest member of the Historic Preservation Board. The board is designed for seven members: three of whom are citizens interested in the history and historic preservation of Sidney and four who are real estate owners of property in Sidney's historic district. Elston is a resident of Gurley and owns the Elston House at 1005 10th Ave. in Sidney.