Official Newspaper of Eddy County since 1883
Official Newspaper of Eddy County since 1883
The New Rockford City Commission approved a repayment plan for the water infrastructure project on Feb. 15 that will both increase the sales tax rate and raise water bills.
Under the proposal, the city sales tax will increase by one-half percent to 2.5 percent. Before the change can go into effect, the commission must hold two readings of the ordinance change and allow public comment before voting. Although the two readings are expected to be held in conjunction with the March and April meetings, Auditor George Ritzke said the increase would likely not take effect until July. The state tax commissioner sets the effective date, and increases are typically scheduled to take effect at the beginning of a quarter.
According to Ritzke, the extra one-half percent would likely generate approximately $68,800 per year, which would all be designated to repay the loan. The plan also involves taking $75,000 per year from the infrastructure fund. The revenue in that fund is generated by the current 2 percent sales tax.
The sales tax was last increased on April 1, 2008, effectively raising the rate from 1 percent to 2 percent. Over the past 10 years, the sales tax has generated anywhere from $200,000 to $260,000 in revenue for the city. In 2018, collections surpassed $275,000 for the first time. With a little more than half of the $275,000 annual payments funded through sales tax, the impact to residents' water bills is estimated at $17 per month. Therefore, the average water portion of each resident's utility bill would increase from $37.75 to $54.75, and the city's water user fees would be closer to the middle when compared with other North Dakota cities.
At the meeting the commission also approved the engineering agreement with Interstate Engineering for the water infrastructure project. According to City Attorney Travis Peterson, the $854,000 agreement is a boilerplate contract required by USDA-RD. He asked that the board seek clarification on a missing Exhibit H regarding resolution of disputes, and the contract was approved pending that clarification.
The commission agreed to a package of incentives for Travis Steele through the city's Renaissance Zone program. The mix of property tax abatement and income tax credits for five years will help him in renovating the former USDA Service Center and operating it as an inn.
Border States Paving of Fargo has been named the lead contractor for the U.S. Hwy. 281 project slated for completion this year.
The next regular meeting is set for Monday, March 4 at 7 p.m.
