Sales tax to go to street repair

City sales tax dollars will go to repair city streets, the McCook City Council decided Monday night at the regular meeting.

The council requested that sales tax revenue originally committed to the repair of J Street, at $461,262, be committed in the 2009-10 budget to help offset costs of three street improvement projects already slated on the city's one- and six-year street plan.

Stimulus funds will be used to finance J Street improvements, freeing up the funds for other projects.

The council also decided to use an additional $90,000 in uncommitted sales tax funds to repair a water main on Kelley Park Drive, identified by Utility Director Jesse Dutcher to cost $50,000.

Street projects that will receive sales tax dollars include H Street, from Norris Avenue to East 11th at $163,000, the 20 percent city match needed for the federally-assisted project. The total cost for H Street includes a future section of 1,000 feet extending eastward from East 11th. That project in particular is being funded at $800,000 hence the $160,000 (20 percent) match by the city.

As the project still needs engineering estimates and bids, H Street will probably not be done until after 2010, said City Engineer Greg Wolford. Total cost of this project comes to about $1.1 to $1.2 million, he estimated.

Other streets projects the council committed sales tax funds to were $192,000 for the re-surfacing of West Fifth from B to J Street and $106,000 to re-surface Norris Avenue, from Park Avenue to north city limits.

Additional requests from the council that will be included in the 2009-10 budget are $15,000 to revamp/upgrade the city's website and $3,000 for Vision McCook, both requests from Councilman Aaron Kircher and Barnett Park lighting, requested by Mayor Dennis Berry.

The general fund budget will also reflect the increase of $44,816 to implement the findings of the salary wage study, the study that compared the wages of McCook city employees to those in other similarly- sized cities.

The council also agreed to use council contingency funds to purchase soil conditioner for the Jaycee Ball Complex, if the right product can be found.

Councilman Lonnie Anderson asked if 5 percent of the budget could be set aside for future economic challenges.

Councilman Aaron Kircher said something like that is already being done with reserves that are set aside in nearly every department for unexpected expenses, such as the $250,000 in the council contingency in the General Fund. City Manager Kurt Fritsch agreed and said the reserves have been built up and will be able to absorb the shock if there is an economic pinch in the future.

During Council Comments, Mayor Dennis Berry noted that the city's budget looks good, compared to other cities who are struggling financially. North Platte is looking at a $1.3 million shortfall with city sales tax revenue down 5 percent, and a property tax request at .56 cents. In comparison, McCook is in good shape with no property tax increase or bonded debt and city sales tax receipts holding steady.

The city's property tax rate is still .319 cents per $100 evaluation, the same since 2001-02.