Council considers bonding for capital project
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Long-term infrastructure projects and how to pay for them led the agenda at the Monday, September 16 Mount Ayr city council meeting.
Financing
Michael Maloney of the financial services firm of D.A. Davidson met with the council to present options for financing a number of capital improvement projects.
These include street improvements in the city’s newly established Urban Renewal Area, storm sewer improvements, airport improvements and other street improvements throughout the city.
To pay for these projects, Maloney proposed the issuance of general obligation bonds not to exceed $2.53 million that could be repaid over 20 years.
Maloney walked the council through different revenue streams available to the city to repay the general obligation bonds, including Road Use taxes, Urban Renewal (TIF) revenue and a debt service levy.
Following Maloney’s presentation, the council set a public hearing for Monday, October 7 at 6:15 p.m. on the proposal to finance the $2.53 million in general obligation bonds.
The council also approved a letter of engagement with Dorsey and Whitney, LLC for legal services associated with the bonds.
In a related matter, Maloney also addressed possible financing options for a new pool, including the use of Local Option Sales Tax and adding $2 to the city’s debt service levy.
Pool financing, he added, would require a referendum, and the earliest date for a vote would not be available until spring of 2020.
The council took no action on pool considerations at Monday’s meeting.
Other business
In other business the council:
• approved the hiring of Robert Schafer to join the city maintenance crew.
• heard a complaint from city residents Linda Hartman and Phil Burmeister concerning water run-off damage to a property Hartman owns on East Madison Street. Hartman stated a neighboring property owner had caused damage to her property in an attempt to keep water run-off from damaging his property. Stating she didn’t want any other resident to suffer a similar situation, Hartman encouraged the city to adopt a drainage policy similar to one she presented to the council for their review.
• approved a contract with PJ Greufe to develop a series of documents, policies and procedures related to city employment, such as handbooks, time off policies, hiring practices and more. City superintendent Brent Wise said Greufe’s work would help standardize city policies and ensure the city’s compliance with existing employment law.
• approved the third and final reading of amendments to city ordinances pertaining to conflicts of interest and council/mayor compensation.
• approved a contract with Chanse Hall to create a city web site.
• briefly discussed a threatened litigation from Alan Culbertson related to a nuisance abatement.
• approved payments totaling $155,125.38 for work completed on the water system improvement project. The council also approved three change orders adding $15,195 to the cost of the project.
