Commission approves 2021 budget, TIF projects

A 2021 operating budget, which calls for holding the mill levy steady for a fourth consecutive year, was approved by the Concordia city commission during its regular meeting on Wednesday.
The budget approved calls for $14,333,982 in expenditures with an estimated tax rate of 57.298 mills, which is unchanged from 2020. The tax rate in 2019 was 57.310 mills.
Information provided to the commission by city finance director Amber Farha stated that operating expenses by departments were held constant or increased up to three percent.
A cost of living adjustment of 1.8 percent for all employees amounts to $50,740.
Longevity pay increases (STEP increases) were left intact at a cost of $3,413.
The budget includes an increase in transfers to the capital improvement projects fund of $83,000 from 2020 for a total of $293,000, and an increase in transfers to the equipment reserve fund of $33,000 from 2020 for a total of $259,000. The increase is going to the Fire Department for the future purchase of a fire truck.
Farha is estimating around $800,000 in reserves at year end 2021.
During commissioner comments, Chuck Lambertz said that he feels fortunate to work with a governing body and have city staff that works hard to be good stewards of taxpayer money.
“We really work hard to reduce the mill levy increases,” Lambertz said. “Sometimes it is unavoidable, but I really feel that you all have done a wonderful job of maximizing those dollars and I appreciate that.”
Mayor Mark Matthew said that he agreed with what Lambertz said.
“There is a lot that goes on behind the scenes, trying to justify things, asking questions and all of the processes we go through. So I really appreciate that,” Matthew said.
In other action taken during the meeting, the commission approved two Tax Increment Financing redevelopment project plans including the downtown alley/sewer project and the Sixth Street parking lot project.
TIF funds will be used for the improvement projects that will address blight and improve public infrastructure to support economic development within the established boundaries of the TIF District.
The downtown alley/sewer project includes the replacement of pavement, storm sewer and sanitary sewer mains in the alleys between Sixth and Seventh streets, specifically the alleys between Lincoln and State streets.
Estimated cost of the project is $1,032,685.
Concordia was awarded $561,660 in Community Development Block Grant funding from the U.S. Department of Housing and Urban Development via the Kansas Department of Commerce for the project.
The commission reached a consensus on a four-part funding mix for the project during a study session in July. It includes the block grant fund, $221,025 in capital improvement program funds, $150,000 from the water fund and $100,000 in TIF funds.
A design contract with Campbell & Johnson Engineers was approved by the commission in March.
Bid letting for the project is anticipated this fall, with construction to begin in the spring of 2021.
The Sixth Street parking lot project includes the demolition of two dilapidated houses located at 326 and 330 West Sixth St. and the subsequent construction of a public parking lot. Total estimated cost is $265,100.
The city currently owns the house at 330 West Sixth St. and is in negotiations to purchase the house at 326.
Demolition of the houses will occur as soon as the property is acquired, and design work is anticipated to occur in early 2021 with construction to follow.
The TIF funds will be the primary source of funding for the project.
The TIF District was established in 2000 and will expire August 31, 2020.
Loans to grants
The commission approved moving the Emergency Business Loans made to nine businesses from the Concordia Revolving Loan Fund program to grants and opening up a second round of grant funds to help local businesses offset the losses incurred from the COVID-19 pandemic.
The commission will revisit the issue on November 1.
CloudCorp executive Kim Reynolds and city manager Amy Lange recommended moving the loans to grants and opening up a second round of grants.
The city made available to small businesses the Emergency Response Loan application with a maximum amount of $25,000.
Nine applications for loans, totaling $199,500, have been approved by the city commission. There is a remaining balance of $333,764.57 in the program.
Reynolds informed the commission that the Department of Commerce has indicated that the local county/community Revolving Loan Fund monies may be in jeopardy of being returned to the state. She and Lange felt confident that the funds should be utilized to benefit Concordia businesses.
That money will be available in round two of the grant funding approved by the commission, with a cap per business set at $25,000.
Businesses applying for the grant will be required to meet federal and state guidelines, including, but not limited to, 51 percent of employees meeting the low-to-moderate income level and providing invoices, receipts and proof of payment for any operational expenses for which they are looking to get reimbursed.
Businesses which have loans changed to grants, and the grant amount, include:
Easy G Sports Grill, $25,000; El Puerto Mexican Restaurant, $12,500; Britt’s Fountain and Gifts, $12,000; Taco Grande, $25,000; Jitters Coffee House and Lounge, $25,000; Servicemaster, $25,000; Urban Couture and Spa, $25,000; Cozy Corner Learning Center, $25,000; and Super 8 Motel, $25,000.
Animal shelter HVAC
The commission approved the purchase of a Carrier 90,000 BTU furnace, with a Carrier SEER 3 ton 410A air conditioner and horizontal coil, to be installed at the O’Connor Animal Shelter, from Hood Heating Air Plumbing & Electric, at a cost of $7,178.
Concordia Police Chief Ric Fredrickson presented the proposal for the HVAC system to the commission.
MOU for virus funds
A memorandum of understanding with Cloud County to accept Coronavirus Relief Funds, and authorizing Matthew to sign a memorandum, were approved by the commission.
The city will submit a request for $293,065.74 in relief funds to the county’s subcommittee.
Cloud County received $1,748,586 in Strengthening People and Revitalizing Kansas (SPARK) funds through the Coronavirus Aid, Relief and Economic Security Act to provide entities with financial support during the COVID-19 pandemic.
A local committee was formed in the county to review receipts and make recommendations for funding.
The recommendations must be approved by the county and submitted to the state by August 15.

Resource: https://todayshomeowner.com/hvac/reviews/carrier-air-conditioner/