ORD — Ord residents will decide on whether to re-new a local options sales tax for economic development on Tuesday.
Folks approved a 1% local-option sales tax to run for 15 years and fund various economic development projects in 2001. This includes infrastructure renovations along with sales tax loans for businesses.
If lost, that’s something Valley County Economic Development Executive Director Trevor Lee says could stunt growth for local entrepreneurs.
“A lot of these loans were not just for start-ups, they were for transitions,” he explains. “If we didn’t do these loans we’d probably have five or six fewer businesses downtown.”
“Some of the most recent loans were business transitions and they saved those businesses from shutting their doors,” Lee adds.
Applicants for the loans apply through a committee appointed by the city council. There have been 48 loans approved through this process.
A labor study for the area shows Valley County’s job growth rate stood at 7.5% between 2005 and 2014. That compares to Nebraska’s overall rate of 6%. Manufacturing jobs have risen 191.7% in that time, while those figures have dropped to -4% at the state level.
On the other side, what a “no” vote means is a loss of local government decision-making power. “That’s what’s so great about this program is that you’re not relying on the state and federal government for these grants and these loans,” Lee explains. “You could decide how you spend your own tax dollars, locally.”
“With the political climate nationally that we are seeing, I think that’s going to be more and more important to have that local control.”
If approved, The 1% local-option sales tax for economic development would go back into effect beginning in January of 2017 for another 15-year period.
Election day is set for Tuesday, May 10th with voting open from 8:00 A.M. to 8:00 P.M.
