City sales tax to increase July 1

The city sales tax in New Rockford will officially increase from 2 percent to 2.5 percent on July 1. The New Rockford City Commission approved the second reading of the required ordinance change at a special meeting on Monday, March 18. The state tax commissioner’s office now needs 90 days to implement the change.

The commission also approved the second reading of an ordinance that will require all residents within 200 feet of a water main to connect to the city’s service. The former is part of the city’s plan to repay for the $10 million water infrastructure project slated for construction this summer. Auditor George Ritzke estimates that the one-half percent boost will generate $68,000 towards the $275,000 annual payments to USDA. The rest will come from user fees and part of the 2 percent tax.

The latter ordinance is required by USDA Rural Development as part of the financing package the agency offered the city to complete the project.

Members also held a second special meeting this month on Thursday, March 14. At that meeting they approved the plans and specifications for Phase I of the project, which involves replacing more than 80 blocks of water main in the city limits and installing valley gutters to improve flow into the city’s combined storm and sanitary sewer system. The call for bids is expected to be released in early April.

Residents please note that garbage totes should be placed on the streets or avenues for pickup beginning next week (March 28).