Official Newspaper of Eddy County since 1883
Official Newspaper of Eddy County since 1883
by Amy Wobbema
Tax relief is coming to New Rockford property owners, in the way of lower special assessments.
Last month the Transcript reported that the street project was completed for $500,000 under the contractor’s bid amount. More positive news came for taxpayers last week at a special meeting of the New Rockford City Commission.
The street project was finished more than $1 million under budget, or about 17 percent less than expected. City officials were aware of that possibility when they secured financing in early 2022, but they sought the larger amount in loan funds to account for possible unexpected expenses.
The city secured $7,692,000 in financing, and the total cost is expected to total less than $6.4 million. Auditor Becki Schumacher explained to the commission that there were still a few remaining bills to pay, so the exact total of the loan was yet to be determined.
Before they could proceed with loan closing, however, the commission needed to decide how to address the special assessments, which were certified using the larger amount.
The commission had two viable options to consider, and they chose the first.
Commissioners decided to keep the loan period the same, 15 years, and reduce all future payments by the appropriate percentage. In addition, all who paid their special assessments in full, in advance, will receive a refund of an equal percentage. That refund will come as a check from the City of New Rockford.
The alternative was to shorten the length of the loan and keep the annual payments the same. In that scenario, those who prepaid their special assessments in full would not receive the refund, officials said.
According to Schumacher, $525,000 in special assessments were paid in full up front, representing 66 parcels.
Commissioners decided they wanted to give all taxpayers a break right away.
The reduced rates will be effective for the 2023 tax year, for which statements will go out later this fall. Property owners who paid up front will receive checks once the loan is closed and the exact amounts of the refunds are calculated.
