By Jolene Farley
The Hills City Council signed a revised contract with Rock County Rural Water for the proposed $219,000 water improvement project at a Tuesday meeting. Dan Cook represented Rock County Rural Water at the meeting.
The council discussed financing options through Rock County Rural Water, the Exchange State Bank and Minnesota Rural Development.
Bonding fees through the bank would be roughly $3,000 and $5,000 through Rural Development.
"I don’t think as a city we should be financing this project period," said City Council member Keith Elbers.
Elbers pointed out that the city has certificates of deposit coming due that are enough to cover the project.
"If we do get an emergency, why can’t we borrow for that particular emergency?" he said. "If it’s going to get assessed anyway, why not pay ourselves for it?"
Paying for the project in lieu of financing the improvements would save the city an estimated $137,000 in interest over 20 years, according to the council.
"What he’s saying has a lot of merit, to my way of thinking," said Mayor Jim Jellema.
The larger water line would increase water pressure and capacity from 1,680,000 gallons per year to 2,940,000 gallons per year.
oThe council negotiated with Martin Township representatives on fire protection contracts.
The Hills Fire Department provides protection for 19 sections of Clinton Township and the city of Steen.
Rates were raised from $320 per section to $340 per section. Rates for the city of Steen were increased from $2,000 to $2,500.
The possibility of the Hills Fire Department taking over coverage of all of Clinton Township was discussed. The Luverne Fire Department currently covers a portion of the township.
Mayor Jim Jellema advised the representatives to contact County Administrator Kyle Oldre to evaluate what needs to be done to make the change for next year. He also suggested contacting Hills Fire Chief Doug Chapman to see if the Hills Fire Department would be willing to take on the extra area.
"If they feel they can give sufficient service …" Jellema said.
oThe council discussed the possible sale of the old Patriot Academy and barbershop building. The council is interested in selling the building. The matter will be discussed further at the next council meeting.
