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NB Council seeks equipment bids

By Barbara Brown
The North Branch City Council voted Monday night to seek bids on several capital equipment purchases.
During the March 24 meeting, the council heard a request to seek bids for the following equipment: thermal imaging camera, turn-out gear for firefighters, a fire hose, a microfilm reader for the library, a document imaging system and new computer system for City Hall, a mower for the parks, a time-lapse VCR for the police, a police radar unit and vehicle cameras, an emergency vehicle pre-emption system that would change traffic signals so emergency equipment can pass safely, plow truck for Public Works and a pickup truck and trailer for Public Works.
The total on the certificate could reach $300,000 if the council were to approve purchase of all the items.
While the council recently approved banning the sale of an equipment certificate, which works much like a loan to the city, the council agreed Monday night to rescind that resolution.
The councilís rescind doesnít hurt the cityís financial health, said finance director Dave Stutelberg.
After the Monday meeting, Stutelberg said selling an equipment certificate would mean the city could buy some much needed equipment this year and not worry about making a payment until next year.
He said selling the certificate would not impact the cityís recent decision to tighten the reins and chop department budgets for this year so the city would have a buffer fund if the state takes away all its local government aid.
Stutelberg said the city would not necessarily have to raise taxes to cover the cost of an equipment certificate.
The city is given a certain amount it can levy up to each year by the state, which sets that limit based on a legislative formula, Stutelberg said.
He said the city also can use special levy power to pay for things not included in the levy limits, like an equipment certificate.
Levy limits are determined by using the rate at which the city has grown during a given year, Stutelberg said.
With more growth, the cost of levies is reduced per homeowner or business.
Therefore, Stutelberg said it is too early to tell if the council would have to raise property taxes to pay for any certificates because no one yet knows how much development there would be in the coming year.
Stutelberg said an equipment certificate normally spans five years. He said the cityís first payment would be in 2004 and that he would expect it to be paid off by 2009.
The city currently has three equipment certificates in effect. A 1999 certificate will be paid off next year with a final $44,000 payment.
Several more payments are scheduled on 2001 and 2002 certificates for City Hall improvements and the new North Branch fire hall.
Public hearings
Two public hearings were held at the beginning of the meeting. The first was to hear testimony on a proposal to increase liquor license fees in the city.
The fees would be changed as follows: on-sale of 3.2 malt beverages from $50 to $100, off-sale of 3.2 malt beverages from $75 to $125, sale of wine from $500 to $750, temporary from $25 per day to $50 per day and club from $200 per day to $500 per day.
Also the schedule would impose a new late fee of 10 percent of the license fee or $25, whichever is more.
The second hearing was for testimony on a variance of a drainage and utility easement at 40530 Finley Road.
No one commented at either hearing.
Economic development
The council also approved motions that called for hearings for tax abatement or tax increment financing plans for three businesses scheduled to move into the Industrial Park.
The council also agreed to set a public hearing on the proposal to set up a tax increment financing district on the west side of the city along Flink Avenue between 400th Street and 393rd Street.
Also at the meeting, the council awarded the cityís garbage removal contract to Terryís Disposal for $2,302.56. East Central Sanitation is the only other company that offered a bid, it was $3,876.


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