The economic development plan approved by Nebraska City voters a year ago is set for bigger impacts in the years ahead, Pat Haverty, director of the River Country Economic Development Corporation, told city commissioners on Monday.

Among its first year contributions are a building renovation, Main Street manager salary, museum pass and advertising for Lemon Days and Wine under the Pines. Haverty said the $59,146 in expenditures is money well spent and a successful start to the10-year program.

“I think you will see an even larger impact from LB840 in the future,” he said.

Voters approved funding of up to $200,000 a year from city sales tax to stimulate the local economy through grants and loans to businesses, industry and tourism. An allocation formula temporarily limits spending for certain categories, such as industrial development, 25 percent; business development, 30 percent; and downtown redevelopment, 25 percent.

After the first year, however, funds remaining in the account are pooled into a general fund available for any qualified project.

City Administrator Scott Bovick said the allocation formula was developed in response to public input meetings prior to the 2006 election. Haverty said the formula lets people know there are new funds available in each category, if the economic development plan receives new funding. The program does not receive sales tax revenue unless the city collects more than $1.3 million in a year.

A citizens review committee, which reviews funding requests that are referred by Haverty before they go to the city council for final approval, has set a precedent in how spending will be categorized in the allocation formula.

For example, a $25,000 loan to Scott Darrah to purchase and renovate a building at 614 Central Ave. is listed as $12,500 coming from downtown redevelopment and $12,500 coming from business development.

The distribution in the first year was $18,500 for business development, 9 percent; $38,500 for downtown redevelopment, 19 percent; $6,500 for tourism, 3 percent; and $12,166 for administration, 6 percent.

Haverty said it is difficult to calculate the economic impact of the LB840 program in its first year.