BEATRCE – Beatrice voters will consider an issue on the May Primary ballot to renew the local economic development program, funded by part of the city’s local sales tax.  The city council approved putting the question on the ballot, which if approved, would provide a maximum of $300,000 annually.


The LB 840 plan has been in place since 1992, providing up $250,000 annually, renewable every ten years with voter approval.


"Just two years ago we rolled over and started using the funds coming out of the electric department rather than through the sales tax. Those additional sales tax dollars now just go for property tax relief."


City Administrator Tobias Tempelmeyer says during the past, the amount spent from the economic development fund sometimes exceeded what it took in.
"One was the extension of utilities out to Northgate...the hospital in 2011. One was when you paid off the Blue Valley Automation loan guarantee...we had that judgment come through in 2012. In 2016, we had the strategic plan that we paid for. We constructed 1923 Ella Street which we sold, and put that revenue back into this fund. And, then you started with the 407 Court Street demolition..in 2017 you had the demolition of 407 Court Street...and then in 2018, you had the demolition of the grain elevator. Those are the five years where you spent more out of this fund, than you put into it."


The past year’s fund balance in the program was nearly $1.4 million. The current program expires in March of 2023, a reason officials want to put the issue before voters during this election year.


City Councilman Ted Fairbanks supported increasing the annual amount at some level.  "Instead of of the 250, I think doubling it seems excessive, but having more in there. That being said, I am under the impression that the electric department has ample funds in reserves to cover all their projects."


City Administration says the electric department reserve fund stood at $4.7 million at the end of 2021…down from nearly $7 million seven years ago. The reserves helped pay for skyrocketing electric costs following blackouts during a frigid February one year ago.  Tempelmeyer said there is a balance in the current economic development program fund of $575,000, with outstanding loans from the program totaling about $774,000.


He said the city is also working with the Southeast Nebraska Development District on a USDA grant that could become another source for development purposes.


"The electric department has to put up a match of $60,000 to that because that's the only entity that's eligible under that program. The city's not eligible...the electric department is. We would get $300,000 from USDA, the electric department would match with $60,000 and it would become a revolving loan fund...just like your LB 840 funds can be used for, today."


There was no public input given during a hearing Monday night. The issue now goes on the May 10th Primary Ballot.