Monthly Sales Tax Fund Update

Each month we’ll be bringing you an update on the sales tax fund for economic development’s activity. That includes receipts, expenditures and fund balance. These figures are publicized at each economic development board meeting and was at one time released in our monthly newsletter. With the advent of the blog, we’re moving to real-time publishing and have brought those monthly updates here.

Our sales tax fund provides income and funding possibilities for economic development. The funds have been used in the past for low-interest loans to Valley County businesses, property development, community promotion, housing and more. For this past month, figures are included below. The first table breaks down our current fund income only. The second fund is essentially the ledger balance of the bank account. At this point in time, the City of Ord has $247,000 in sales tax funds unallocated and available for use. If you or your business is interested in expansion, equipment acquisition, transfer or another qualified activity, please let us know.

Sales Tax Fund Income

Of the annual receipts for the 1% sales tax, only 4/10 of 1% of the City’s annual valuation can be used for economic development purposes, according to NE Statute. Any excess funds above the amount at the end of the 10-11 fiscal year will be transferred to the general fund of the City for expenditure on infrastructure, parks, community promotion and public safety purposes.

*A refund claim of $198,977.62 was approved by the Nebraska Department of Revenue for a qualified Nebraska Advantage economic development project. Nebraska Advantage, a statewide incentives program, makes available tax incentives for business development projects that meet certain employment and investment thresholds. The amount will be subtracted from monthly sales tax collections for economic development until paid in full.

Current Fund Status

Funds Committed
Sales Tax Reserve (in budget) $0.00
NNI Construction Financing Fund $300,000
New Neighborhoods Infrastructure Fund $30,000
New Neighborhoods Engineering Fees $7,103
Mortensen Site Signage $10,000
Loan 2012-02 $150,000
Summer Internship $3,500

Leave a Reply