Closure of NGS to have little impact on city plans

City plans to keep on going

Steven Law
Posted 10/18/17

Despite loss in revenue, city expects to be just fine

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Closure of NGS to have little impact on city plans

City plans to keep on going

Posted

The city of Page’s revenue shortfall, due to NGS ending operations, will have little effect on its strategic plan, said Page City Manager Crystal Dyches, last Wednesday. 

The city of Page receives about $611,000 in taxes from NGS annually, which is about five percent of the city’s budget.

The city has had four meetings with SRP so far in an effort to determine what impact the plant’s closing may have on Page’s future, and how to best prepare for it.  

“Recognizing that NGS is a significant part of the local economy, SRP and the NGS owners have pledged to work with us to assist us in our economic development efforts to ease the impacts expected from the closing of the Navajo Generating Station” said Dyches.

During their second meeting, SRP asked Page how they could help with the transition. The first thing the city asked for was solid numbers, said Dyches. 

“We wanted to know how much money NGS was contributing to Page,” said Dyches. “We knew the numbers would be big, but we didn’t have solid numbers. We needed solid numbers.”

The city and SRP commissioned an economic impact study which was conducted by Northern Arizona University, in conjunction with Alliance Bank Business Outreach Center.

The results of the study, which were released in September, found that NGS supplies close to $51 million to Page and the surrounding region annually. Of that amount, NGS pays approximately $611,000 to the city in taxes.  

Dyches says that the city will employ certain factors to offset some of those financial losses, which will include money from the state general fund to replace tax money NGS currently pays to Page.

Despite the $611,000 budget shortfall, the city plans to move forward with its plan as previously scheduled, and it doesn’t expect to see any projects halted or significantly slowed down, said Dyches.

Page Mayor Bill Diak is also optimistic for Page’s future. 

“The City is concentrating our efforts to support the future economic vitality of our community through the implementation of our Strategic Plan” said Mayor Diak. “The next decade will be a time of transition for Page. It will be vital that the city and regional partners, together with our residents, business community and other key stakeholders work collaboratively to create a path toward a stable economic future.”

The city of Page’s strategic plan focuses on six areas, which are further broken down into more precise objectives. 

One: Community Development, part of which includes creating and implementing a revitalization plan for Block 17 and a Master Streetscape Plan for the central business district. 

It will also research and draft and ordinance for City Council to consider allowing recreational vehicles and other self-contained camping units on designated city properties during certain permitted events.

Two: Fiscal Stability, part of which includes analyzing existing revenue structures, and exploring alternative funding mechanisms to support infrastructure and economic development project funding.

Three: High-performing Organization, part of which includes recruiting and retaining a skilled workforce.

Four: Improving infrastructure, which includes a plan for paving and improving Page’s streets over the next 10 years, invest in the city’s facilities, technologies and equipment, and develop and prepare a plan for the water and sewer utilities for future growth while still ensuring financial stability.

Five: Housing. Page struggles with the lack of affordable housing, which continues to have detrimental effects on the city’s, and other Page businesses and institutions, ability to recruit employees.

Six: Quality of life, which includes such items as implementing summer youth programs, research and pursue grant opportunities that would enhance recreation programs and facilities.