Sales tax election to be mail-in ballot only

Clerk's office sees increased voter turnout, lower cost

McCOOK, Neb. -- The Red Willow County Clerk's Office notified city officials this week the upcoming special election related to renewal of McCook's local-option sales tax will be coordinated as a mail-in ballot election. The structure means polling places will not be open and voters will either mail their vote via the postal service or hand-deliver it to the clerk's office.

City Manager Nate Schneider announced the format Wednesday evening during a special meeting of the McCook City Council. Schneider said the clerk's office had the authority to determine how the ballot is run and informed city staff of the chosen format Tuesday. Schneider said more than once during the meeting it was a determination made by the county, not the city.

The mail-in format is anticipated to save the city approximately $2000, lowering the estimated cost of the special election from $8400 to $6400, according to initial conversations between the city and the clerk's office. Schneider said the clerk's office also estimated it would result in a 30 percent increase in voter turnout.

The special election ballots will contain two ballot questions and be mailed by the clerk's office to registered voters between April 22 and May 1, 2015. Citizens have until May 1 to register or make changes to their voter registration information. The ballots will not include return postage, which voters will either provide or physically deliver the ballots to the clerk's office.

Schneider said he was working with the clerk's office on the possibility of coordinating other secure drop-box locations, aside from the clerk's office, which is located on the second floor of the Red Willow County Courthouse. He said nothing had been confirmed yet.

Schneider also said the McCook post office has agreed to, as the deadline approaches, hold special election ballots back and not send them to North Platte for sorting as is typical of other mail. Schneider said this should help avoid issues with ballots missing deadline due to mail delivery.

Schneider said the process of conducting special elections via mail-in only was not uncommon. He said Hitchcock County coordinated a special election related to school issues via mail-in ballot and the clerk's office indicated Hall County had also done so recently.

McCook Economic Development Director Rex Nelson said he had researched several studies done on mail-in ballots and indicated he thought the 30 percent turnout increase was inaccurate.

[The studies show] "It doesn't necessarily motivate people to vote. It will be interesting to see, doubt it will be 30 percent," said Nelson.

During Wednesday's meeting City Council approved the ballot language and other details pertaining to the upcoming special election. The election is scheduled for May 12, 2015.

Voters will be asked to approve both the one-percent and half-percent local-option sales tax through the year 2033 via the first ballot question. The approved language also provides increased spending flexibility for the city. It will allow the city to use sales tax dollars for "other debt" and also removes specific allocation guidelines provided in previous ballot language.

For example, the 2007 ballot language stated specifically one-half of one percent of the sales tax would be used to maintain the city's reduced property tax request. The 2015 language lumps the listed expenditures together without any guidance as to how much would be spent on each category.

The 2015 language states the sales tax funds will be used to maintain the city's reduced request for property tax; for capital equipment; to improve, repair or replace city's infrastructure, including but not limited to water quality improvements, city streets, parks and other public facilities; to repay or redeem water, sewer and other city debt; and, so long as Ballot Question No. 2 is approved by the voters, to fund the continuation of the McCook Economic Development Program."

The 2015 language also increases the length of time between requesting voter renewal of the tax from 10 years to 15 years.

The second ballot question will ask for voter approval to continue the McCook Economic Development Program coordinated by MEDC. Nelson said the new ballot language didn't change much "in substance from the original plan." 

Councilors briefly discussed the Citizen's Advisory Revenue Committee referenced in the new ballot for the McCook Economic Development Program. Schneider said it was a continuation of the citizen's review committee currently meeting on a quarterly basis and indicated reporting requirements, specifically related to coordinating public hearings, were being looked and likely falling short up to this point. He indicated public hearings would be coordinated following future committee meetings and the practice would continue with the new ballot language if approved by voters in May.

Schneider also said increasing the number of members on the committee from five to seven would be necessary to match up with the original ballot language presented to voters.

MEDC Executive Director Rex Nelson added that MEDC provides the names for three of the members appointed to the citizen's advisory review committee to City Council for final approval. It is unclear, as of the time of this report, whether the practice Nelson referenced is outlined in McCook's adopted Economic Development Program or a policy created by MEDC as the administrator for the program.

Nelson also said Wednesday evening he could appoint a chairman of the board if City Council was more comfortable with receiving reports from that individual going forward. Nelson has historically provided the citizen's advisory review comittee with all data pertaining to their review of the functioning and progress of the Economic Development Program. He was also the representative from the committee in attendance at City Council meetings when the minutes from the meetings were approved via the consent agenda.

City Council unanimously approved both resolutions pertaining to the two ballot questions for the May 12 special election.

Ballot question 1, as approved Wednesday evening:

EXTENSION OF CITY SALES TAX

"Shall the governing body of the City of McCook, Nebraska impose a sales and use tax upon the same transactions within such municipality on which the State of Nebraska is authorized to impose a tax, as follows: such sales and use tax and allocation, as provided below and as amended from the existing one percent (1%) and one-half percent (0.5%) sales and use taxes which were approved by the voters in 2007, shall take effect on October 1, 2018, and continue for a period of fifteen (15) years thereafter, and shall the City increase

its budgeted restricted funds for fiscal year 2018/2019 by $230,000 (5%) over the estimated future fiscal year 2017/2018 budgeted restricted funds for the purpose of maintaining the City's reduced request for property tax; for capital equipment; to improve, repair or replace the City's infrastructure, including but not limited to, water quality improvements, City streets, parks, and other public facilities; to repay or redeem water, sewer and other City debt; and, so long as Ballot Question No. 2 is approved by the voters, to fund the continuation of the

McCook Economic Development Program?"

Ballot question 2, as approved Wednesday evening:

AMENDMENT TO ECONOMIC DEVELOPMENT PROGRAM

"The City of McCook proposes to amend its Economic Development Program, which amended Program is on file with the City Clerk:

I. The Program, which commenced May 17, 2008 and currently continues through June 30, 2018 shall be amended as of July 1, 2018 and extended for an additional period ending on October 1, 2033.

II. Funds for the amended Program may be used for, among other things:

a. Loans, grants and loan guarantees for qualifying businesses;

b. Construction and rehabilitation of housing for persons of low or moderate income;

c. Purchase of real estate or options for such purchases;

d. Business recruitment;

e. Entrepreneurship and new business development programs;

f. Infrastructure for qualifying businesses, such as water, sewer, streets and sidewalks;

g. Operations and salaries of Program administrators;

h. Tourism-related activities; and

i. All other economic development activities allowable under

Nebraska law determined to be beneficial to the City and surrounding areas.

III. Under the amended Program, such activities may include the following projects, among others, to promote the goals of the Program:

a. Development of affordable housing to support workforce needs;

b. Expanded revolving loan fund for business development;

c. Construction of a banquet and conference center to facilitate tourism-related activities;

d. Purchase of land for business park expansion;

e. Demolition of blighted buildings and business facade improvements

to facilitate location and expansion of qualifying businesses; and

f. Recruitment of retail trade businesses.

IV. Collection of funds from local sources of revenue under the terms of the existing Program shall continue through June 30, 2018. Collection of funds from local sources of revenue under the terms of the amended Program shall begin October 1, 2018 and continue through October 1, 2033.

V. The source from which funds are to be collected shall be from the City Local Option Sales Tax (if approved by the voters in Ballot Question 1).

VI. The total amount to be collected from local sources of revenue is estimated to be $485,000 fiscal year 2018/2019 and shall increase or decrease each year based upon sales and use tax revenues collected.

VII. The City may issue bonds pursuant to the Local Option Municipal Economic Development Act, as determined appropriate by the Mayor and Council from time to time, to carry out the economic development program.

VIII. Additional funds from other non-city sources may be sought beyond those derived from sales and use tax or other local sources of revenue.

IX. The City shall contract with the McCook Economic Development Corporation (MEDC) to serve as Program Administrator. The City shall maintain general oversight of all funds and the MEDC shall provide an

annual audit as to how funds have been expended.

X. A Citizens Advisory Revenue Committee shall be appointed by the City Council comprised of seven (7) McCook residents. The purpose of the committee shall be to review spending plans every six months, as well as function and progress of the plan as proposed by the MEDC and to advise the City Council as to their adherence to City goals and policies. Under the plan, the City Council must still ratify each years budget allocation to the MEDC as well as approve spending allocations.

XI. The goals of the McCook Economic Development Program are the same as the Program's existing goals: to create jobs for the citizens of Red Willow County; to expand labor markets of McCook and Red Willow

County; to attract new capital investment to the community; to broaden the tax base; to retain existing jobs; to create new businesses and make existing businesses more competitive and profitable; to improve the

retention of youth and young adults; and to provide economic diversification to ensure economic stability and vitality for the City of McCook and surrounding areas. The plan will be consistent with other comprehensive development and redevelopment plans for the City.

Shall the City of McCook establish its amended Economic Development Program as described here by appropriating annually from local sources of revenue $_ for fifteen (15) years?"