Council listens to presentations
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By JEFF SNYDER
MOUNT AYR, Iowa — With the an impending increase on water prices being levied against Mount Ayr in the near future by the Southern Iowa Rural Water Authority (SIRWA), council members heard a presentation from Northland Public Finance during its regular meeting Monday night at City Hall.
Northland is a public consulting securities firm that specializes in helping municipalities to manage the complicated process of public finance. Director of Northland Public Finance Rebecca Greenway, presented a series of observations to the council regarding the logistics of the impending water rate increase that is being levied against the city of Mount Ayr by SIRWA, which is the city’s main water supplier. These rate increases are the rates being charged to the city and do not immediately impact residential rates.
According to Northland, SIRWA has raised rates in a similar fashion to a number of neighboring communities. As a result of these impending rate adjustments the city is weighing its options to manage these water rate changes so they have a minimal impact on direct users costs.
Earlier in the year, SIRWA sent a letter to the city announcing its intention to raise rates to the city with minimal explanation as to why the rate change was needed. SIRWA stated rising costs on the procurement side that forces the changes. As a result of these impending increases, the city is now mulling options to absorb these rate increases as best they can without placing an unrealistic financial burden on city residents.
Northland laid out three possible scenarios for the city to consider. The city has already budgeted for water and sewer expenditures, but when an unforeseen change such as this one arises plans need to change.
The city has scheduled an “off schedule” planning session for council members to discuss the options laid out by Northland. Since water and sewer are often considered under the same budget assessments the council wants time to fully study the options laid out by Northland. Grant driven investments for municipalities are incredibly complex and require advanced planning to remain in compliance with state requirements. On the plus side, the city may be eligible for as much as $600,000 in principle forgiveness for new water and sewer project financing through the Iowa State Revolving Fund. Details of these technical maneuvers will be discussed at the planning meeting on November 9.
The council also heard a presentation from Julie Davison, representing Farm Bureau Financial Services, regarding the city’s health insurance programs underwritten by Wellmark, an affiliate of Blue Cross Blue Shield. Davison outlined the upcoming renewal rates and any plan changes for the city employees and the costs associated with each plan offering. Overall, the rates are expected to increase by approximately 6.5 percent, which Davidson deemed “typical for insurance rates in this day and age.”
There were a few questions regarding the plans and rates that Davison agreed to look into and get back with council next week. Davison also agreed to look into a state sponsored insurance plan designed specifically for municipalities that closely mirrors the plan that was presented, and in fact is also underwritten by Wellmark. She agreed to report back her findings as to any rate dependencies if any this plan would present.
In other business, the council approved Resolution 2026-49 which signs off on 2026 fiscal year street financial report to the department of transportation. One other resolution was approved during session, 2026-50 approval of the Year End Urban Renewal Report, which are monies allocated to help local officials promote economic development. The goal is to help stimulate private investment in commercial development which ultimately benefits the city and county.
The council agreed to install new policy guidelines for city employees who operate city owned vehicles. These guidelines are devised to standardize operating instructions requirements and insurance filings should there be an accident while operating a city owned vehicle. These written guidelines will be implemented as of the first of the new year.
