Nevada County Picayune and Gurdon Times Newspaper Archive

Rate information lacking for rural water project

If people think taxes are high here, consider what they are in Scotland.

Scotland has a flat tax, where 40 percent of the income goes to the government. The average property tax is $2,500, with sales tax being 17.5 percent.

This is what Jon Chadwell, executive director of the Prescott-Nevada County Economic Development Office, told the Prescott City Council at its regular meeting Monday, March 17.

Chadwell had spent two weeks in Scotland with LeadAR, a statewide leadership organization.

He said while the taxes were high in Scotland, they were even higher in Belgium.

From there he went to the good news and told the council about the groundbreaking for Prescott Rubber, Inc.

The building, he said, should be done by October, and equipment for the plant has already been ordered.

Once the business starts, it is expected to employ 30 people within three years.

The sidewalk project for downtown is still waiting for approval from the state before the city can advertise for bids.

For the rural water project, Chadwell said, Little Rock has yet to send the rate information needed down. Without this information, the council can't pass a rate ordinance, which means the project can't be let for bid.

The rate, he said, is based on two factors. One is the 382 people who have signed up for water.

The other is if the project doesn't cost as much to build as anticipated, the loans to be repaid won't be as much, which means the rates would be lower.

However, Chadwell said, the rate initially approved by the council will most likely be the highest for the project. Traditionally, once construction begins others sign up for it.

In addition, some areas may be cut from the project and the bids would come in lower than expected. This would mean, he said, less money would have to be borrowed for it.

Chadwell updated the council on the proposed fire station/park building.

The specifications, he said, have been reduced, somewhat, with the building to be 100 foot by 45 foot.

At this time, Chadwell is working with to get the proper wording for the specifications so the city will get the kind of building it needs, with no mistakes. Once the wording for the specs is completed, the work will be contracted out.

Chadwell said the committee decided to contract construction of the building. The council set $110,000 aside last year for the building, and transferred it to a separate account this year for accounting purposes.

The building will have two restrooms, instead of three, and the front will not be bricked, as originally planned. This was done to reduce costs.

Members of the council questioned the committee's making the decision to contract the construction part out, and tabled the matter until the April meeting.

A new councilman was selected to the panel to replace Karen Ward, who moved out of the city limits. James Cox was chosen as the new representative for Ward 3 position1. He will serve out the remainder of Ward's term.

In other business, the council approved a bid to purchase a mower from Southwest Equipment in Hope, along with a new car for the mayor from Golden Hart of Camden.