In November 1990, Nebraska voters enacted a constitutional amendment allowing cities and villages the authority to use local sources of revenue for economic or industrial projects and programs. In 1991, the Unicameral implemented this amendment with the passage of Legislative Bill 840, the Local Option Municipal Economic Development Act.

As towns have witnessed population declines and a loss of younger people, they have thought about their future and the types of actions and investments needed to reverse these past trends.

Callaway took advantage of the LB840 legislation by enacting a 1% sales tax nearly 10 years ago, with the funds to be used for economic development in the village.

The question of imposing that tax appears on this year’s general election ballot not as a new tax, but as a renewal of the existing one.

A committee of community members was formed to oversee the implementation of the LB840 funds. That committee has established the purpose and goals of the program to include creating jobs, expanding labor markets, attracting new capital investment to the community, to broaden the tax base, make existing businesses more profitable and ensure economic stability and vitality for the Village.

LB840 funds can be used for a variety of programs, including housing development - an issue facing nearly all Nebraska communities regardless of size. It was the LB840 program that contributed to the construction of the duplex located on Grand Avenue. LB840 funds may be utilized to provide grants or loans for improvements of businesses, employee retention and recruitment, and technical assistance, to name a few.

“Because Callaway is classified as a Village, all businesses in the community are qualified as eligible to participate in the LB840 program,” explained Ashley Gerlach, Business Development Consultant with the Nebraska Department of Economic Development.

If approved by the voters, the program tax collection will be in effect to March 31, 2035. The estimated amount of fund collected each year through the sales tax is $40,000.

Two measures will appear on the Nov. 8 ballot for Callaway voters. One pertains to the LB840 plan, while the other approves renewal of the 1% sales tax. Voters must check FOR in both boxes in order to keep the current LB840 tax and plan in place for the Village.