FAQ about the Quality Growth Fund

by Don on September 20, 2010

in About North Platte

What is LB840, North Platte’s Quality Grow Fund?

  • Enacted in 1991, as constitutional amendment
  • North Platte plan voted in with 71% Yes in 1999
  • More than 50 communities have adopted LB840

What does LB840 do?

  • Allows cities to collect & spend sales &/or property taxes for Econ. Dev..
  • Provides dedicated funding to the local ED plan.
  • Allows public funds to be spent in specific ways not already allowed.

What happens if we don’t renew our plan?

  • Current 2% sales tax remains in place
  • All existing QG funds and future sales taxes go to General Fund
  • Sunset of plan does not lower sales tax rate

Who controls this fund

  • 5 member committee appointed by the mayor (Bob Phares, Dudley Oltmans, Pat Keenan, Kim Steger, Dan Rindels)
  • Chamber/DEVCO president acts as ex officio chair
  • Committee reviews and recommends applications, forwards to Mayor & Council.
  • Council has Final Vote

Renewal plan is unchanged from current plan

  • Only half of any growth above 2% per year goes into QGF
  • The QGF is capped at $650K in any given year
  • The largest yearly input was $473K
  • 10% is reserved for small business
  • QGF revenue to 2009: $2,285,220
  • Total disbursements: $1,044,036
  • Total loans: $200,000

How do we compare to our peer communities?

North Platte (6 yr average) $350,000
Grand Island $750,000
Scottsbluff $600,000
Fremont $550,000
Norfolk $400,000
Blair $400,000
Chadron $400,000
McCook $330,000

How has current fund been spent?

  • QGF has funded $636,000 in E.D. infrastructure (roads, utilities)
  • Helped create more than 300 jobs
  • Fully developed Twin Rivers Business Park.
  • Funded marketing plan for North Platte
  • Put North Platte in position to act on opportunity

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