City water rates likely to rise, but by how much?

Repayment of the $4.8 million loan approved by USDA-Rural Development for the City of New Rockford's water infrastructure project was discussed at the Jan. 7 commission meeting. The general consensus of the commission was to avoid special assessments for the project. Instead, commissioners reviewed calculations from Ritzke for increasing monthly water utility rates and/or using sales tax revenue. Ritzke said an additional $34.11 per month per user would be needed to repay the entire debt by increasing user fees alone.

Another scenario involves taking $15,000 per year from local sales tax going into the city's infrastructure fund for debt repayment, then funding the remainder by increasing utility bills by approximately $25 per meter each month. Ritzke noted that if the city sets aside a required debt reserve fund up front with available funds, the utility rate increase could further reduce to $22 per month under this scenario. Currently 32 percent of the sales tax revenue collected by the city goes into the infrastructure fund to use for water, sewer, streets and other infrastructure needs. The tax generated approximately $88,000 for the infrastructure fund in 2018.

Commissioners also discussed the possibility of raising the sales tax. Currently the city collects a 2 percent local sales tax. Numbers were not immediately available regarding how much an additional one-quarter or one-half percent sales tax could generate per year or how the city would proceed with this option. The sales tax was last increased on April 1, 2008, effectively raising the rate from 1 percent to 2 percent.

In regards to water rates, it's important to note that New Rockford's water rates are low in comparison to other cities based on information previously released by Wade Senger of Interstate Engineering. Each year, AE2S conducts the annual North Central Utility Rate Survey, a survey of water, wastewater, stormwater, and solid waste utility rates for cities and rural/regional water systems throughout the upper Midwest. In the 2018 Annual Utility Rate Survey, New Rockford's average water bill is $37.75, which includes 6,000 gallons of usage per month. In comparison, several cities including Hillsboro, Lakota, Cavalier, Drayton and Langdon all have average rates of $60 or more per month, similar to what New Rockford's rates would increase to under the proposal. President Calvin Packard asked the commissioners to come to the February meeting prepared to make a decision regarding a repayment plan.

Peterson will advise the city through the entire bidding and construction process for the water infrastructure project. A legal services contract between the city and Peterson Law Offices, P.C. was approved by the commission that evening.

New Rockford will host the state's 2019 Arbor Day celebration. Tom Claeys, Interim State Forester, extended an invitation to the city to host the annual celebration, which normally occurs in May. Commissioner Kelly McKnight made a motion to host, which carried unanimously. The city lost hundreds of trees in the July 8, 2018 storm, so this will be an opportunity to showcase the clean-up efforts of volunteers and the city's plans to replant trees throughout the city. The North Dakota Forest Service will coordinate the activities and provide the trees to be planted at the event. The city will be recognized as the host in the annual Governor's Arbor Day Proclamation as well. More to come as plans are finalized.

New furnaces were installed at the water plant. Other plumbing repairs have also been completed by Rockford Plumbing and Heating. The plant will need a new tank and mixer system soon.

An electronic bid opening for the U.S. Hwy. 281 construction project is set for Feb. 8. The project, which involves an asphalt overlay on the highway, resloping of the ditch and rebuilding frontage roads, will be completed in 2019.

City officials submitted an insurance claim for the clean-up efforts at the airport, where the July 8 storm destroyed the hangar. Work continues on plans to rebuild.

A home on the 900 block of Fourth Avenue North that had been foreclosed upon due to unpaid taxes was deeded to the city by the county. City officials plan to demolish the derelict home and then sell the vacant lots.

City officials are researching ordinances to determine the best course of action regarding mobile and manufactured homes. The commission received a building permit application from Jason and Tonya Munson to place an 1,800 sq. ft. pre-manufactured home on a lot in city limits that is currently zoned commercial. The proposal is to place the home on a pier system in which the home would be anchored to in-ground piers by cables or other similar attachment. City Attorney Travis Peterson asked specific questions about the home and whether it would be more appropriately defined as a "mobile" or "modular" home. The city ordinance regarding mobile homes, 16-01-04, which was written in 1983, restricts their location to specific areas zoned "trailer" or "mobile." Mobile homes are commonly brought in on a chassis and have I-beams underneath, said Peterson. Modular homes, in contrast, come in on trailers in one or more pieces and are placed on a concrete slab, basement or other permanent foundation as new construction would. More clarification is perhaps needed on the definitions of both and how and where each shall be placed on city lots.