City considering rate increases
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The Mount Ayr city council passed the first readings of ordinances increasing water, sewer, storm water, and garbage rates, accepted a demolition bid, and considered a potential RCDC partnership at their regular meeting Wednesday, May 21.
As part of the consent agenda, the council also approved the minutes from a special meeting held Thursday, May 8 to review three bids for sod and seeding at the new pool site and move forward with the project.
In addition to Lincoln Lawn Care’s bid of $14,150 for seeding and sod, Drake Seeding and Sod bid $13,867.50 and Blue Marble bid $9,600 for hydraulic seeding and sod.
The council ultimately choose to use a local contractor and approved the bid from Drake Seeding and Sod in the amount of $13,867.
Water/sewer, garbage and stormwater rate increases
The council reviewed the results of water and sewer rate studies conducted by Northland Securities and learned they will have a formal presentation at their June 18 meeting.
In anticipation of completing a $350,000 water meter replacement project, the water rate study recommended a 4% increase in resident rates beginning in July or August of 2025. The increase would allow the city to set aside $35,000 per year for the next ten years, and fund $350,000 in water meter replacements.
Historically, rates have increased 2% over the last five years as noted in the current ordinance.
Proposed changes to the ordinance, chapter 92, would increase rates 4% in 2025 and 2026, drop down to a $3.25% increase in years 2027-2029, eventually settling at a 3% annual increase beginning with year 2030. The percentage increase equates to roughly $1 more per billing cycle.
The meter fee would also increase $0.25 per year, going from $1 per month to $2 per month by July 1, 2028.
Similarly, the sewer rate study recommended the same percentage increases to generate $866,400 for wastewater treatment projects. The current sewer service charges ordinance, chapter 99, has a built in 2% base/flow annual rate increase.
“We do have a sewer project that was not quite $700,000, which we have a $300,000 grant for that,” stated City Administrator Brent Wise, “And that should be starting sometime in the near future.”
Administrator Wise also proposed increasing the monthly garbage and stormwater rates by $1 as of July 1, 2025, along with a 3% annual increase in rates going forward.
The increase in garbage rates would eliminate the fee that is currently charged to anyone who has extra trash overflowing their receptacle.
“Currently right now, we do a billing for anyone who has an extra overage, and I feel like we can eliminate that completely if we just made this $1 adjustment one time,” said Wise. “It would always carry through because your percentage is going to offset that because it went up by that dollar.”
Wise estimated the stormwater increase would generate somewhere around $15,000 each year.
“The purpose of trying to do that is, we’ve got four stormwater projects that have been discussed,” explained Wise.
“I have talked with Michael Maloney and DA Davidson about bonding, and we will have that information for you at the next council meeting,” Wise stated.
Wise also pointed out that approving the first readings does not mean the council is moving forward, but felt there was validation for all four proposals.
Council members swiftly approved the first readings of all four ordinances.
Demolition bids
Four demolition bids to clear three nuisance lots the city obtained, 503 W. Monroe, 104 N. Webster, and 806 E. Adams, were opened and discussed by council members.
The first bid from Jeff Sickels Dozing was for demolition and removal of one house, located at 806 E. Adams, in the amount of $9,500.
A bid from Jarred Dirt Work itemized the demolition and removal of all three houses, and gave a total cost of $33,500.
Schafer Excavating also submitted an itemized bid for all three houses, with the total adding up to $31,050.
The council ultimately approved the low bid of $20,899 from TEK Builders for demolition and disposal of all three properties.
RCDC partnership request
Following a joint work session earlier in May, the council was asked to consider gifting one of the three lots they plan to clear to the Ringgold County Development Corporation (RCDC).
RCDC Executive Director, Nicole McGinnis, was present to explain the request of obtaining a lot for a future 3-bedroom, 2-bath house through the Homes for Iowa program.
While both entities would like to see vacant lots converted into available, affordable housing, debate focused heavily around what the term “partnership” meant.
Council members estimated it would take roughly 15 years to recoup what the city has spent, while the RCDC would fully recoup 100% of their investment once they sold the house.
After considerable discussion, the council asked whether RCDC would be willing to split the demolition cost of the lot.
The council tabled their decision to allow the RCDC board time to meet and discuss the request.
Re-zoning lot 198
No one was in attendance to speak at a public hearing related to re-zoning lot 198 located at 204 E Madison Street. After closing the public hearing, the council swiftly approved the first reading of an ordinance changing the residential R-1 lot to a commercial district C-1 lot.
The council also unanimously approved waiving the second and third readings of the ordinance as no opposition was voiced.
Other business
In other regular business, the council approved:
A.
Resolution 2025-17 hiring 20 lifegaurds, 12 umpires, and setting hourly wages for the seasonal employees.
Paying out sesquicentennial deposits for cookbooks and to secure a band;
Requiring sesquicentennial vendors to obtain special event insurance with a minimum of $1 MIL coverage.
Resolution 2025-14 outlining the transfer of funds to rectify negative fund balances.
A chicken permit request from Al Rusk for four laying hens;
The low bid submitted by Jill Ehlen for little league team pictures;
The sole bid from Examish Construction to frame, trim and hang the airport hangar doors for $9,500;
Resolution 2025-16, a pool change order decreasing the cost of the pool project by $22,406.50;
A certificate of substantial completion of the pool project, along with a “punch list” of items yet to fix or finish;
Charging a 5% convenience fee for purchase made with a card at the pool to help offset credit card fees incurred by the city;
Resolution 2025-15 for a tax abatement requested by Julie Woollums at 107 S West Street under the Urban Renewal Plan.
Additional business was tabled until more information was available.
Since no bids were received for FY 2026 street projects, the council swiftly tabled the agenda item. The council also tabled the request to pay 50% of a property survey completed by Mike Wik until an invoice is received.
