Village of Utica LB 840 Renewal

The Wording

LB840 RENEWAL FOR VILLAGE OF UTICA

Shall the Chairperson and Village Board of Trustees adopt an ordinance to renew the Utica Economic Development Program and continue to use 0.50% of the existing 1.50% local option sales and use tax to fund the Program?

(    )  Yes  (FOR continuing the Program)

(    )  No  (AGAINST continuing the Program)

Terms and Conditions of the Program

A.  The goals of the program are to create well-paying jobs for the citizens of Utica, to expand labor markets of Utica and Seward County; to attract new capital investment to the community to broaden the tax base; to retain existing jobs and make existing businesses more competitive and profitable; and to provide economic diversification to ensure economic stability and vitality for the Village of Utica and surrounding areas.

B.  Funds for the program may be used for the following purposes: public works improvements, job credits, purchase of real estate, technical assistance, recruitment expenses, loans or grants for fixed assets or working capital, relocation expenses, loan guarantees, job training assistance, building rehabilitation, small business development, tourism, contracting for the administration of the program, issuance of bonds, and other activities authorized by Nebraska law.

C.  The program shall be renewed for a ten-year period.

D.  Collection of funds shall continue on June 1, 2025, and end on May 31, 2035, unless renewed by the electors of the municipality.

E.  The source from which funds are to be collected shall be 0.50% out of the existing 1.50% local option sales and use tax.

 

Our Explanation

In 1991, LB 840 was implemented by the Nebraska Legislature. LB 840 allows cities and villages to set up an Economic Development Plan to collect and appropriate local tax dollars for private businesses, if voters approve. The Plan is intended to be an investment in economic growth for the community. Voters must re-approve the use of local tax dollars for the Plan every 10 years.
 
The Village of Utica is already using an Economic Development Plan, approved in the past by Nebraska and by local voters. Utica charges 1.5% local sales and use tax, and “0.50% of the existing 1.5% . . . tax” is used for the Plan. Utica’s plan set goals to attract new residents and visitors, grow and keep jobs in the area, and increase the variety of types of businesses, among others. Private entities which contribute to those goals may be approved for funding from the Village. Funds may be used to maintain or establish a business, create jobs and train employees, fix or renovate buildings, purchase land, and more, as described in the proposal.
 
The Plan is at its 10-year mark, so Utica is asking voters to re-approve it. No taxes are being raised; the vote is simply to allow the program to continue.
 
A “Yes” vote is for allowing Utica to use sales tax funds to assist private businesses.
 
A “No” vote is for discontinuing the use of sales tax funds for private businesses.