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Panel hears bill to let small villages reduce board size, broaden LB840 eligibility and allow councils to serve as Boards of Adjustment

Nebraska Legislature — Urban Affairs Committee
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Summary

LB289 would give villages the option to reduce boards from five to three, remove percentage caps on LB840 retail funding so municipalities may decide local eligibility, and permit 1st- and 2nd-class city councils to serve as Boards of Adjustment. Supporters say options help understaffed communities; senators raised open‑meetings and separation‑of‑powers concerns.

Senator Terrell McKinney introduced LB289 as a municipal bill brought by the League of Nebraska Municipalities that combines three distinct changes for smaller communities.

"Firstly, this bill allows villages to have three village board members with the vote of the people," McKinney said. He described two other provisions: removing statutory limits that currently restrict how much LB840 program revenue may go to retail trade, and allowing city councils in first‑ and…

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