LB840: Spalding Economic Development Program
Key Facts
0.25%
$19,525
$292,875
15 yrs
20 yrs
No New Tax
Spalding already collects a 1.5% local option sales tax. The program would not add a new tax or raise the rate. Instead, one-quarter of one percent of that existing tax would be directed to economic development for 15 years.
The total sales tax a shopper pays in Spalding would stay the same.
- 1.25% continues to support Spalding’s infrastructure.
- .25% Designated to the program.
Program Goals
What the Program Could Fund
Eligible activities under the plan include:
Business Financing
Direct loans, grants, and loan guarantees for fixed assets and working capital.
Retention, Expansion & Succession
Help for businesses that want to grow or transition to new owners.
Housing
Grants or loans to build or rehabilitate workforce housing and housing for low- to moderate-income residents.
Childcare
Grants, loans, or funding for early-childhood infrastructure development.
Public Works & Job Training
Grants for essential public works improvements and grants or loans for job training.
Recruitment & Tourism
Business recruitment, tourism-related activities, and technical assistance.
Real Estate
Purchase of real estate, or options to purchase, for development.
Who Can Qualify?
Because Spalding has fewer than 5,000 residents, any corporation, partnership, limited liability company, or sole proprietorship may qualify as a business, regardless of its principal source of income.
Timeline
July 8, 2026
Public hearing held by the Village Board
August 5, 2026
Resolution No. 2026 – 0805 was adopted, placing the question on the ballot
November 3, 2026
Spalding voters decide at the general election
January 1, 2027
If approved, the program and collection begin
November 2041
Spalding voters decide at the general election whether or not to continue the program
December 31, 2041
If the LB840 is not passed, the sales tax designation ends.
Frequently Asked Questions
What is LB840?
Will my taxes go up?
No. The program designates 0.25% of Spalding’s existing 1.5% local sales tax. It does not impose a new tax or increase the rate of any existing tax.
What is on the ballot?
Voters will be asked whether the Village should establish the Spalding Economic Development Program and designate 0.25% of the existing 1.5% local sales tax to fund it for 15 years. The full ballot language is in Exhibit A of the resolution.
What happens if it passes or fails?
If a majority votes in favor, the Village Board will establish the program by ordinance as required by state law. If a majority votes against, the program will not be implemented.
How would businesses apply?
The program plan describes the application process and how the program will be administered. The plan is available for public inspection at the Village Clerk’s office.
Will this take money away from streets and infrastructure?
The program would redirect a portion of existing sales tax revenue, so it’s a fair question. Spalding’s 1.5% local sales tax currently brings in approximately $117,000 a year. If the program is approved, about $19,500 of that would go to economic development each year, and about $97,600 would continue to fund infrastructure as it does today.
While this allocates funds to economic development, the Village is still committed to improving Spalding’s infrastructure.
The program can also pay for essential public works improvements connected to economic development projects, so some program dollars may still go toward infrastructure when it supports a business or housing project.
Documents
Questions
Spalding Economic Development Group
Dani O’Brien, Economic Development Coordinator
(402) 741-9741
Village Office
211 E St. Joseph Street, Spalding, NE 68665
(308) 497-2416
Mon to Thu: 8:00 am to 4:00 pm · Fri: 8:00 am to Noon