Official Newspaper of Eddy County since 1883
Official Newspaper of Eddy County since 1883
At the regular city commission meeting on Monday, Feb. 4, Auditor George Ritzke presented nine possible options for covering the annual loan payments for the water infrastructure project, each which includes sales tax funds, user fees or a combination of the two. Ritzke reported that the city collected $275,221 in sales tax revenue in 2018, which is interestingly enough just $200 less than the projected annual payments due on the water project. On the user fee side, Ritzke said the number of water users has increased slightly over the past 10 years, with the addition of Meadowlark Homes and other newly-constructed homes and businesses in the city.
The challenge is that neither funding source is particularly reliable. By increasing the sales tax by 1 percent, Ritzke projects that the city would collect approximately $137,600, or roughly half of the annual payment. This is based on the premise, however, that taxable sales and purchases remain steady throughout the loan period, a 40-year term. Over the past 10 years, sales tax revenue has varied, and 2018 is the first year the total annual revenue actually reached $275,000.
In addition, the sales tax funds are currently allocated to five different funds/programs per city ordinance. In order to increase the sales tax rate or re-allocate the current tax dollars, the city needs to amend its ordinance. That process requires two readings at public meetings and publication in the newspaper.
On the other hand, increasing user fees is also not a revenue guarantee. The calculations assume that the number of users remains steady over time. Even though the city has realized an increase in users in recent years, the revenue raised from user fees could decrease if the population decreases or more properties are taken out of service than added. The New Rockford City Commission is scheduled to hold a special meeting on Friday, Feb. 15 at 8 a.m. to choose a repayment plan.
Also on the agenda at Friday’s special meeting will be a review and potential approval of the engineering agreement with Interstate Engineering for the water infrastructure project. Travis Dillman represented Interstate at Monday’s meeting, and he updated commissioners on their progress so far. They have begun preparing the designs and specifications for the water main replacement and valley gutter installation portions, with bid letting expected in March. Engineers and officials gathered at the water plant the last week in January to brainstorm improvements needed and upgrades to make there. The goal is to improve the overall aesthetics and taste of the city water through treatment, namely reverse osmosis. The expectation is that bid letting for the water plant overhaul will take place this summer. The water tower repairs will wait until 2020, with a goal to call for bids in the winter for spring or summer work.
Discussion continued on the December proposal from Jason and Munson for the placement of a manufactured home on the 900 block of First Avenue South. President Calvin Packard and Ritzke had done some research on ordinances in other communities, and Packard proposed that the city commission tweak the ordinance to bring the Munson property into compliance. Commissioner Kelly McKnight said she had spoken to a resident who lives in a similar structure about the process the city used to approve it. According to the resident, the foundation used was considered a “permanent foundation” per FHA standards for the approval of mortgages. The resident further informed her that the city granted a variance for her home. After other commissioners questioned whether or not the foundation used in that home was the same as the pier system proposed by the Munsons, Commissioner Stuart Richter said he preferred not to change the ordinance.
City Attorney Travis Peterson recommended that the city take one of three actions to address the issue: 1) deny the permit based on the current ordinance’s definition of and restrictions on a “mobile home”; 2) grant a variance for the structure, acknowledging that it is a special circumstance that is necessary for the reasonable use of the land; or 3) change the ordinance so that the home fits the definition, as there are at least five other structures in the community that could also then meet the definition.
“I’m against denial,” said McKnight. Packard agreed, stating that the home is “a value added to the community.”
McKnight then moved to grant a variance for the home, and it was seconded by Packard. The variance was approved.
Transcript staff did some research on FHA standards after the meeting, and we found that the pier system proposed by the Munsons is in fact considered an approved “permanent foundation” per FHA. The full requirements are available here: https://www.hud.gov/program_offices/administration/hudclips/guidebooks/4930.3G. Therefore, a manufactured home moved into the community and placed on a pier foundation could technically be in compliance with the ordinance that requires a permanent foundation on all such structures. However, language in the ordinance could be interpreted differently.
Commissioners opened the four bids they received for the water plant generator. The city secured a grant for 90 percent of the project cost. After review of the specs of each, the commission approved the low bid, submitted by Interstate Power Systems of Fargo, for $48,940. The bids varied by as much as $12,000, as the high bid from Butler Power was more than $61,000.
New Rockford bison rancher Travis Steele has plans for the former USDA Service Center on U.S. Hwy. 281. He submitted a building permit application to renovate the space, which involves converting the building into eight rooms of what looks to be an inn. The cost of the renovation is estimated at $150,000. The commission approved his application, as well as a permit for a residential kitchen remodel. Travis and his wife Amy commented, “We are excited and look forward to developing this project into a great asset for our community.” As more information is obtained, look to the Transcript for updates on this project.
Another conversation centered around a new resident who requested permission to harbor more than two dogs or two cats, or a combination thereof, per ordinance. The new resident has three dogs and one cat, and the ordinance states that the commission must approve of additional animals and are able to place additional restrictions on the owner as a condition of approval. After discussion about the annual pet license requirements and clawback provisions for residents not in compliance with the ordinance, the commission approved the request on a 3-2 roll call vote.
The recently-appointed members of the Planning and Zoning Commission will go to work on proposals to rezone property at the request of Commissioners Ryan Hager and Justin Ystaas. Both have lots they use for their businesses that are currently zoned residential, and they have requested that the city rezone them light industrial to suit the intended use. The Planning and Zoning Commission has 90 days to review their requests and submit a recommendation to the city commission. The next regular meeting is set for Monday, March 4 at 7 p.m.
