12/27/2024
Good Morning Sidney and Cheyenne County,
We hope you are creating amazing memories with family and friends this holiday season. We all needed a little time off to celebrate and give thanks for all we are blessed with. As 2025 approaches however, it is fast becoming time to get back to work. To rebuild our local economy.
Earlier this month the CATO Institute wrote an amazing article about CDBGs, Community Development Block Grants, and how the incoming administration and D.O.G.E., will be cutting and eliminating them as ways to curb Federal spending. Here is the article. https://www.cato.org/blog/cdbg-ripe-target-doge
There are questions in our federal government about just how much these grants are helping locally. As the article says “ Grants, provide news items that meet local policymakers’ needs for media exposure and speedy results, whether or not they meaningfully improve the prospects of disadvantaged residents.“ We can not count on them continuing according to the article. They will be cut.
Edward Glaeser, an urban economist, noted in the article that “Building is the result, not the cause of success.... people, not structures, determine a city's success.” In other words... it is the people who determine their outcome.
In 2025, it will be up to us to rebuild Sidney. We need to slow down spending on luxuries we can not afford at this time. Not forever, just until we turn around our local economy. Spending is a problem. In 2019 we were spending 28 million a year as a city. Today we are spending more than 39 million a year, yet our police force and services are smaller. We need to control spending better. This month the city spent $45,000 for a new pickleball court. Is it so important to have that now? Really? Is it essential for Sidney? Yes, it would be fun to have one, but at what cost to our local economy and to the taxes we pay? It isn't free.... you paid for it.
Sales tax revenues were down the last couple of months. It is not negative to worry about that. Our City Council took out a huge bond (debt) to pave the golf course parking lot. Payments are being made from projected sales tax revenues for the next 10 years. If sales taxes decline, we will need to raise taxes or other fees to pay the shortfall from lost sales taxes, so we do not adversely affect our bond rating. We need to curb spending. We need to take care of our economy or our taxes will go up.
Next week begins 2025. Our group will let you know what is happening with your money. We just have to come together and make smart choices. We are facing serious challenges in 2025. Luxuries like new pickleball courts need to wait. People, residents, and our children are more important and essential for Sidney's success.