Concordia City Commission Holds Budget Discussions, Approves Demolition Bid

The Concordia City Commission met twice this week in special study sessions to discuss its 2024 budget.

Concordia City Finance Director Amber Farha said the city plans to lower its mill levy to 48.822, down from the current year mill levy of 52.211.  The city does not require a tax rate hearing to increase the revenue neutral rate.

City Manager Amy Lange tells KNCK News the city's mill rate is shown to decrease by 3.389 mills due to an increase in property valuation amounts from last year to this year.  One mill is approximately $33,838, an increase from $31,575 on the 2023 budget.  However, by maintaining the revenue neutral rate, the city is still expected to receive the same amount of tax dollars.

For the year 2023, the City of Concordia has continued to see an increase in sales tax collections.  The city estimates it will collect $240,000 more in sales tax than budgeted.

Ambulance service revenue is up slightly, as well.  The city estimates it will collect $25,000 more than budgeted.

For the most part, Lange says they've determined that the sales tax and ambulance service revenue amounts the city is currently seeing will be sustainable to 2024.

She also noted that rarely will any given department spend all of its budgeted expenses, with every bit that goes unspent adding to the city's reserve.

Throughout 2022, the city saw several vacancies in multiple departments, but to begin 2023, they have started to fill those positions.

Currently, Lange says all positions are budgeted to be filled in 2024.

The guaranteed general fund reserve at the end of year 2024 as shown in the proposed budget is $466,646, an increase from $458,050 in the 2023 budget.  Farha said the guaranteed amount is just a bottom dollar amount.  Given underestimated revenues and overestimated expenses, she expects no less than $1 million at year end 2024, and up to as much as $1.1 million.

The proposed budget also transfers $450,000 to the city's Capital Improvement Projects Fund.

The city reviewed its Capital Improvement Projects list during a special meeting on Monday, July 17th.  The 2024 project list includes exterior improvements to Concordia City Hall, interior improvements to City Hall and the Concordia Police Department, tuckpointing to the north wall at the historic Brown Grand Theatre, mill and overlay work to Archer Street from 12th Street to 18th Street and Doster Street from 7th Street to 8th Street, and improvements to the press box at the Concordia Sports Complex.

Lange said the commissioners also reviewed project lists for fiscal year 2025 and beyond.

Wage increases were also discussed.  

The commission talked over a 4 percent cost of living adjustment (COLA) for all city employees, plus an additional wage adjustment to bring the Concordia Fire & EMS and dispatch departments up to the average of comparison departments.  A recent wage study indicates those positions have been paid below industry standards.

Longevity pay increases (STEP increases) also are expected to remain intact, amounting to $14,726.41.

During the Concordia City Commission's regular meeting Wednesday, July 19th, the commission voted to approve the bid from Smith Construction in the amount of $207,680 to demolish the three-story commercial building with garage and the one-story residential building located at 830 W. 11th Street in Concordia.

The commission previously voted to table action on the project earlier this month.

The property, currently owned by the Concordia Land Bank, was purchased from ARR Properties, LLC in March.  This property is located adjacent to the proposed St. Joseph Subdivision moderate income housing project in Concordia.  The primary structure is a three-story vacant residential structure and has a blighting influence on the proposed residential development.  The single-family home, located behind the primary structure, was not occupied at the time of the real estate sale.

The item was tabled during the last meeting with the discovery of potential asbestos and the need to clarify disposal of the floor tile and concrete.  City Manager Lange says they have confirmed the Cloud County Transfer Station can accept the concrete with floor tile attached, provided it is disposed of in the construction debris pit.  A new pit is not needed.  A sample of the wall heater pipe insulation has been sent to the lab.  If it contains asbestos, this friable material will need to be removed by the city prior to demolition.

Smith Construction originally offered a start date of August 1, 2023 and a completion date of September 20, 2023, but this start time will be delayed approximately one month due to the additional asbestos abatement.

The commission also held two Executive Sessions for Non-Elected Personnel, totaling 35-minutes in length, with City Manager Lange.  No action was taken following the Executive Sessions.

During their Land Bank meeting, the board approved the sale of 429 E. 2nd Street and 435 E. 2nd Street to Brandon Snavely and Jessica Tripp.

The city acquired the lots in 2018 by donation.  The purpose of the Concordia Land Bank is to temporarily hold and maintain property until it can be returned to private ownership and redevelopment.

Brandon Snavely and Jessica Tripp purchased both of these lots for $400 to set a double-wide mobile home on the property to serve as their primary residence.  They currently reside at 720 State Street, which was approved for condemnation during the Commission's July 5th regular meeting.

Because the purchased property is located in the floodplain, there are additional requirements for development.  The property owner is responsible to obtain a floodplain development permit which will require the property to be developed according to the National Flood Insurance Program (NFIP) regulations for floodplain development.  This requires a professional certification and elevation certificate.  The mobile home will need to be elevated such that the finish floor is located above the base flood elevation.  There are extra requirements to ensure the mobile home is properly anchored to ensure it stays in place during flooding and that flood waters can simultaneously pass beneath it freely. 

Moreover, the electrical, mechanical and fuel gas equipment must be located above the base flood elevation.  A building permit will be required to ensure the proposed site plan meets zoning requirements and subdivision regulations in addition to floodplain and building code requirements, including proper anchoring to a foundation and connection and location of utilities.