On Feb. 20, members of the Nelson Community Club went before the Nelson City Council during a special meeting to propose a half-a-cent sales tax increase, over a period of ten years, to fund an economic development plan. The group has been working with Kelly Gewicke of Nebraska Economic Development. She suggested the community should pursue the LB840 or Local Option Municipal Economic Development Act.

LB840 authorizes incorporated cities and villages, when approved by local voters, to collect and appropriate local tax dollars for use in economic development purposes. To implement the LB840 program, communities must formulate a written economic development plan which, if voter-approved, will become the foundation for the collection and expenditure of local tax revenue. A survey was done by the community club last year to see if voters would approve of economic development in Nelson with over half of those who responded approving of the proposal.

Currently, the city has a one percent sales tax. Those funds are used for streets, sidewalks and other general improvements. It is estimated that the additional half-cent sales tax will generate more than $50,000 a year, which will be put toward development in Nelson. Possible projects include funding for a daycare, support of a grocery store, duplexes or other types of housing.

If you would like more information, you may obtain a copy of the plan from the city office. The Community Club hopes to hold an informational meeting for the public before the May election.