Bagley OKs natural gas system

I first started at the Bemidji (Minn.) Pioneer as an intern in the summer of 1996. That would begin six years as a news reporter, sports reporter and copy editor for a small, six-day-per-week daily newspaper in northern Minnesota. I wrote a large range of stories from multiple beats, to features to sports, my favorite being the coverage of the Red Lake Reservation High School basketball team named the Warriors. Here is a collection of my stories from my time at the Pioneer.

April 9, 1997

By Devlyn Brooks

Staff Writer

Voters in Bagley took the first step toward bringing a new utility into their community Monday -- they voted 10 to 1 in favor of allowing the city of Bagley to construct a natural gas system.

The first question on the ballot -- whether they city should proceed with building a natural gas system -- was passed 176-18. The second question -- whether residents would allow the city to use general obligation bonds to fund the question -- also passed, 17-42.

Mayor Steve Beltz, who had previously expected about 400 to 700 voters to turn out, said inclement weather and a lack of interest kept the number of voters low. However, he added, that those who were really interested in installing a natural gas heating system were sure to turn out.

"The small numbers didn't surprise me. A lot of people didn't feel it was of importance to them," Beltz said. "It's not like electing someone to office. But the people who were in favor of it were out in larger numbers."

To fund the project, Bagley residents voted to allow the city to use general obligation bonds. It will allow the city to borrow construction money at a lower interest rate because should the gas line's revenue not cover the cost of payments, city tax dollars would be guaranteed to cover the payments.

Another form of bond, revenue bonds, would have required the city to borrow at a higher interest rate, because the lender is taking a bigger risk without the guarantee of payment if the line is not profitable.

Beltz said the next step in the process for the city is to obtain contracts from residents or commercial properties interested in switching from their present heat source to natural gas. He added the city would not pursue the project any further if the system would not pay for itself.

Those who sign contracts early could be connected as soon as this fall, according to Beltz.

Also keeping a close eye on the Bagley vote was the city of Fosston, which is interested in bringing the gas line into that city. Fosston held an informational public meeting Tuesday about bringing a natural gas system into their community after Bagley's vote tally was known, Mayor Arvid Clementson said.

The Bagley vote was crucial in any hopes of Fosston building a gas system, he said, because each cities' construction costs would be decreased by hundreds of thousands of dollars.

Fosston will follow much the same path Bagley did, according to Clementson said. They city will be conducting a survey of residents to determine interest in the project starting Thursday, and if there is a favorable response, a vote could follow as soon as June.