Council to consider city sales tax

Saturday, March 3, 2007

The one-percent city sales tax and its possible renewal will be deliberated at the next McCook City council meeting, Monday night at 7:30 at City Council chambers.

What exactly will be considered on this regular agenda item is not known at this time, as discussion materials will be presented at the Monday night meeting. But city officials readily acknowledged the benefits of the tax at a Feb. 19 council meeting.

City manager Kurt Fritsch embraced the tax as a valuable source of revenue and property tax relief, as did Councilman Marty Conroy.

Mayor Dennis Berry appeared to favor the concept but seemed reluctant to endorse a tax that had no sunset clause.

The one-cent sales tax was implemented in 2000 and sunsets in 2008. It will have to be approved by resident voters if it is to continue. In 2006, it generated $688,283 for property tax relief and another $688,283 for infrastructure improvements.

These improvements included the second phase of the B Street construction, air conditioning at Memorial Auditorium, and the replacement of the roof of the Norris Park Bandshell.

McCook, Cambridge, Eustis and Farnam all have a one-cent sales tax. Those that have a 1.5 percent tax include Holdrege, North Platte, Grand Island, Hastings and Lincoln.

Other regular agenda items include the recommended approval of several ordinances on third and final readings.

One ordinance will adopt Purchasing Procedures for the city that appoints the city manager as the Purchasing Agent who can approve purchases up to $20,000. Fritsch stated at the Feb. 5 council meeting, when the purchasing procedures came up for its first reading, that it would bring city code up to state statutes.

State statute allows purchases up to $20,000 by governing entities and also allows governing bodies to craft their own laws within that guideline. For example, city and county departments in Lincoln go through a formal sealed bid process for all purchases over $10,000, and McCook City Council members currently have approval of purchases at $10,000.

These purchasing policies were adopted from the cities of Norfolk and Kearney with changes made to fit McCook.

Under the new plan, purchases or contracts up to $20,000 can be made by the city manager with informal bidding, that eliminates public bidding and instead requests two quotes. These quotes can be solicited by telephone, fax, e-mail or by public notice on the City Hall bulletin board.

Purchases of $1,000 or less can be made without asking for two bids.

Red Willow County Commissioners have a purchasing policy similar to the one the city is proposing, by approving purchases between $5,000-20,000 by informal bidding, with two to three quotes solicited. Purchases above $20,000 must be competitively put up for bid.

Expenditures above $40,000 must be approved by the McCook School Board as required by state law. Purchases below that are included in the consent agenda at their regular meeting, which are approved as part of the consent agenda or can be pulled for discussion.

Another ordinance will revoke six other city ordinances that conflict or duplicate sections of the Purchasing Procedure. The third ordinance up for approval will give the city manager authority to write-off uncollected debt from $75 to $200.The city has very little uncollected debt under $200, according to the city manager's report.

At a Feb. 6 council meeting, Fritsch said $200 was decided upon as that

amount is roughly the same amount of two unpaid water bills.

The council will also be asked to select a date for a special city council meeting to orientate new members to city facilities and services.

Items under the consent agenda include:

N receive and file the notice made by Councilman Lonnie Anderson that his

wife, Peg Anderson, is employed as a dispatcher with the McCook Police

Department. Under the Nebraska Political Accountability and Disclosure Act,

public officials must disclose when members of their immediate family are

employed by the public body on which they serve - in this case, the City of

McCook.

N recommend approval to the Nebraska Liquor Control Commission the

application of John Nothnagel in connection with C.T. Jewel Company and

"Hi Times Liquor Mart‚ for a Class D license;

N receive and file an award from the United States Environmental Protection

Agency that selected McCook's drinking water project as the 2006 winner in

region VII for Sustainable Health Protection.

Region VII includes cities in Nebraska, Kansas, Missouri and Iowa. While

the award comes with no monetary benefits, it is significant that McCook

was chosen as one of the best out of hundreds of cities the USEPA works

with through the Drinking Water State Revolving Fund, noted the city

manager's report.

The council will also be asked to designate March 18-24 as "National

Surveyors Week" as requested by Gary Dicenta, a member of the Professional

Surveyors Association of Nebraska.

The state senate approved a resolution unanimously in January 2006 that

recommended the establishment of the third week in March as National

Surveyors Week

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