Taxpayer share of infrastructure project estimted at $5 million

The City of New Rockford’s water treatment, storage and distribution network is in need of major repairs, and the work is estimated to cost $10.26 million. The city has committed $1 million, and the project is eligible to apply for a 45 percent grant, which would cover $4.2 million. The plan is to finance the remaining $5 million through USDA, which is expected to increase each resident’s water bill by about $450 annually over the next 40 years.  

There are four main areas of concern, which were identified at a public input meeting hosted by city officials Thursday, June 7.

 1. Approximately 39,000 feet, or 7.4 miles, of water mains buried underneath the city are original cast iron pipe installed in the early 1900s. The pipe is brittle, corroded and even has holes, causing frequent breaks.

 2. The city’s 250,000-gallon water storage tower was built in 1968. The interior was last recoated in 1997, and the exterior was painted in 1999. Experts recommend sandblasting and recoating every 15 years.

 3. The water source is high in sulfates, making it unpalatable for many residents. The water treatment system currently used does not remove sulfates.

 4. During large rain events, the combined storm and sanitary sewer network fills up and pumps water to a secondary lagoon system. This results in increased operation and maintenance cost to the city.

Five years ago, city officials developed a long-term infrastructure plan to identify and address needs throughout the city. The water distribution network was identified as a priority in the plan due to the above-named issues.

Throughout the past year, Public Works Superintendent Bruce Hirchert and Commissioners Kelly McKnight and Stuart Richter have worked with Interstate Engineering to develop an improvement plan and identify sources of funding to make the project more affordable for taxpayers.

As per the proposal presented Thursday, the issues would be addressed in four parts, and are prioritized by need, with greatest need first:

Part A: Water main replacement, which includes installation of PVC pipe to replace the worn cast iron pipe. All apparatus on the water mains would also be replaced, including valves, hydrants and fittings.

Part B: Water tower maintenance, which calls for professionals to sandblast the exterior and interior of the water tower, restore any damaged seams and recoat the exterior and interior. 

Part C: Water treatment plant improvements, for which the solution is to add a reverse osmosis skid to the current water treatment process. Since reverse osmosis creates more reject water than the current system, a new lagoon is also required.

Although the city water supply is in compliance with state and federal safe drinking water standards, the high sulfate and sodium levels make the water unpalatable for many residents.

Sulfate (SO4) is dissolved from naturally occurring minerals contained in soils, aquifer rocks and sediments. It does not produce gas and is odorless. Sulfate levels do not harm public health and are considered “secondary contaminants,” which are unregulated by the EPA. However, the presence of sulfate in water can have the following effects:

 • Can make water taste bitter 

 • Can cause scale buildup in water pipes and appliances, reducing their lifecycle

 • Can make cleaning clothes difficult. Further, using chlorine bleach in sulfur water may reduce the cleaning power of detergents.

Reverse osmosis is one of only three known processes that remove sulfates from water. The others are ion exchange and distillation.

Part D: Storm water improvements, which involves the addition of several valley gutters and the removal of storm water inlets. As a result, areas of the city would be surface drained to the river, reducing the amount of storm water going into the sewer network, alleviating stress on the lift station pumps and lagoon and resulting in lower operation and maintenance costs.

Repayment plan: With a total of 673 water users, or meters, in the city, it would cost each user $445 per year for 40 years to payback the remaining $5 million required to complete the project at 3.25 percent interest. This figure also includes the costs of building a reserve fund, which USDA requires.

There are other options the city could pursue to pay for part or all of the project, such as increasing the city’s sales tax. The current city sales tax rate is 2 percent. The city commission could consider increasing the rate, perhaps by a half percent or one percent, or allocating more of the existing sales tax to the project. In 2017, there were $9.25 million in taxable sales and purchases made in the City of New Rockford, which resulted in approximately $185,000 in local sales tax revenue. Increasing the rate by one percent would result in an additional $92,500 collected, or about one-third of the total annual payback based on the 40-year repayment plan at 3.25 percent interest.

If the city decides to move forward with the project, construction could begin as early as 2019 and is expected to last two seasons due to the sheer volume of work.

Residents are encouraged to review the project proposal, ask questions and provide input on the project’s merits, repayment plan and cost to taxpayers. Public comments will be accepted through June 14. Comment cards are available at New Rockford City Hall; comments can also be directed to Wade Senger by phone at (701) 252-0234 or email [email protected].