Sales tax revenue sees increase

Talk about it

Despite budget shortfalls nationwide the city of Dickinson is seeing an increase in sales tax revenue over last year at this time.

City Accounting Manager Tina Johnson informed the Dickinson City Commission at its regular meeting Monday that revenue is up for both the 1 percent and the ½ percent sales taxes levied by the city through May 31.

“Our sales tax schedule shows that we received $209,000 of 1 percent sales tax and $105,000 of ½ percent sales tax in May,” Johnson said. “Our sales tax revenue was up 5.2 percent over last year.”

Through the end of May, the 1 percent sales tax revenue sits at $1.09 million, compared to $1.03 million at the same time last year. The ½ percent sales tax sits at $543,000 compared to $516,000 last year.

The city’s General Fund, however, is at $3.7 million and is down $152,000 from last year at this time, Johnson said, but added most of that can be attributed to the drop in oil production revenue and there could be a silver lining.

“Our oil and gas production totals $47,000, which is 40 percent less than last year,” Johnson said. “And our leases, easements and royalties total $71,000. This line-item includes oil royalties that have decreased 57 percent over last year.

“Both of these oil revenues are showing an increase in May revenues compared to past months.”

Johnson also informed the commission the city is the recipient of $117,000 from the snow removal assistance program in June. That’s 50 percent of the total expenditures from January through March for snow removal, Johnson said.

Mayor Dennis Johnson asked if the $117,000 was assumed for in a budget correction approved in early May to pay for the snow removal.

“If we re-forecasted today we would have an extra $117,000 to work with?” Mayor Johnson asked, to which Johnson replied in the affirmative.

“Well, that’s good news,” he said.

Also on the agenda, City Engineer Shawn Soehren presented the commission with a bid for the 2009 Chip Seal Coat Project from Astech Corporation for approval.

Commissioners expressed some concern with accepting the $347,000 bid due to some issues with the chip seal project completed by the company in 2008.

“It makes me nervous that they haven’t fixed last year’s and we’re willing to give them another contract almost equal to what they did before with no guarantee with this one,” Commissioner Shirley Dukart said.

The company issued a letter to the city stating it will repair the work that was unsatisfactory last year, Soehren said, which Mayor Johnson said likely would serve as that guarantee.

Commissioner Gene Jackson said it’s important the two contracts be kept separate, adding, “there’s not a surfacing contractor around that hasn’t had issues with seal coats” in the past.

The commission approved the bid.

In other business:

r Interim Stark County Emergency Manager Brent Pringle introduced himself to the commission.

r Approval of the sale of North Hills Acres Second Addition Replat, Block 4 Lot 2 to Bruce and Cebe Schneider of Dickinson. The Schneiders offered $3,200 for the property, which was listed at $7,873. The commission approved the sale based on the fact the land has a substation and power lines located on part of it.

r Public hearings and approval of utility easements located in the Heart River Second Subdivision and Country Oaks Estate.

r Mayor Johnson proclaimed the fourth Monday of every September as “A Day to Eat Dinner with Your Children” in an effort to lower the prevalence of drug and alcohol abuse as children are less likely to participate in that kind of behavior if their parents talk with them on a regular basis.

r Approval of a Community Military Covenant which states the city will continue to support its veterans.

r Approval of signing a letter of support for the Energy Efficiency and Conservation Block Grant, of which the city of Dickinson may receive up to $68,400.

r Approval of two engineering contracts with Kadrmas, Lee & Jackson for the 2009 Urban Roads Project and the 2009 Stimulus Projects. Jackson abstained from the votes.

Note: City Commissioner Carson Steiner was not present.

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