Council adopts FY 2010-11 annual budget

By Clint Brown

Following a public hearing, the Pella City Council approved the Designated Representative Report and also approved a resolution for Amendment No. 4 to the Pella Business Corridor Urban Renewal Plan.

This resolution would adopt the proposed Amendment No. 4 to the Pella Business Corridor Urban Renewal Plan. This Plan, also referred to as the Pella Business Corridor TIF District, was adopted in February 2003 and may be amended from time to time to respond to development opportunities.

Amendment No. 4 is being proposed to add rights-of-way that serve as primary corridors into Pella to the urban renewal area. The areas include Main Street from Columbus Street to Big Rock Park Road, which is approximately 9.81 acres, and East Oskaloosa Street (aka business Highway 163) from 240th Place east to the corporate limits, which is approximately 4.09 acres. The proposed Amendment No. 4 would also expand the proposed projects to include various general street improvements in the urban renewal area.

At their meeting held on February 22, 2010, the Planning and Zoning Commission recommended approval of Amendment No. 4 as being in conformity with the Comprehensive Plan. In addition, all affected taxing entities were notified and the required Consultation was held on February 12, 2010. No oral or written comments were received.

The Designated Representative Report was also approved into the Council record. This report confirms the Consultation results and the Planning and Zoning Commission decision and has an attachment of the Planning and Zoning minutes from February 22, 2010.

Following the second public hearing of the evening, council approved a resolution adopting the FY 2010-11 Budget.

In February, two work sessions were held with the City Council to discuss the FY10-11 Budget. The work sessions covered all City operations with the exception of the Electric Utility, which is a separate process that will begin in April of this year. Listed are some of the highlights of the Proposed FY 10-11 Budget:

-For the ninth consecutive year, the City’s property tax rate will remain at $10.20 per $1,000 of taxable valuation. In comparing us to similar sized communities, the City of Pella has one of the lowest tax rates in the State.

-The FY 10-11 Budget will establish a base for several infrastructure related upgrades over the next five years. These projects include but are not limited to the following: reconstruction of major arterials including North Main, Oskaloosa Street, and Vermeer Road, funding of wastewater projects to comply with Iowa Department of Natural Resources (DNR) mandates, and replacement of several water distribution mains throughout the City.

-The FY 10-11 Budget proposes extensive repairs to our aquatic facility, including replacement of the underwater lights at the outdoor pool and significant repairs to our indoor facility. It is important to note, at this time staff has budgeted funds to repair our indoor facility; however, before these repairs take place. Council will need to decide if it is prudent to update the current facility or pursue a replacement facility.

-The FY 10-11 Budget includes plans to replace the playground equipment at Caldwell Park.

-The FY 10-11 Budget provides funding for both the replacement airport project and continuance of the 1-80 connectivity study. These two key transportation projects are necessary to maintain our current economic base but could also provide us with the opportunity to attract new business and industry in the future.

- No rate increases are proposed for the water and wastewater utilities for FY 10-11. However, such increases will be necessary in the near future in order to fully fund the DNR mandates aforementioned.

With the next order of business, the council approved a resolution approving the 2010 Bos Landen Maintenance Budget.

This resolution approves the 2010 Bos Landen Maintenance Plan. As a condition of the Bos Landen Ground Lease, R & R Management Company, L.L.C. is required to submit a maintenance plan for the golf course. The maintenance plan is subject to Council approval and also serves as the guideline for determining the annual reimbursement to R & R Management for maintaining the course.

For 2010, R & R Management has requested the maximum allowable reimbursement under the terms of the ground lease, which is $90,000.

In reviewing the R & R Management request, city staff felt comfortable recommending approval of all maintenance items with the exception of the cart path repairs. Staff recommended conditional approval of the cart path request subject to staff inspection as weather permits.

The City currently supplies untreated water to the Bos Landen Golf Course. Staff recommends that untreated water sales are treated as other similar large usage customers in regards to new water rates. Specifically, for large usage customers, their base fee was increased from $8.50 to $14.50 per month and their usage fee increased by approximately 18% under the new single rate structure. The current rate for untreated water sales at Bos Landen per 1,000 gallons of usage is $.71 and would be $0.84 per 1,000 gallons under the new rate structure.

With the final action of the evening, council approved a resolution accepting improvements and authorizing final payment to Winger Contracting Company for work in connection with fuel handling improvements for the City’s Power Plant.

On April 21, 2009, Winger Contracting Company of Ottumwa, IA was awarded the contract for Fuel Handling Improvements at the City’s Power Plant in the amount of $320,050. On October 6, 2009, Change Order #1 in the amount of $4,940 was approved for a platform extension and ladder. The contract cost of the improvements with Change Order # 1 brought the total cost of the contract to $324,990.

Brown Engineering, project engineer, has completed a final walk-through of the project and found that the work was completed in accordance with the plans and specifications. Staff has received all necessary lien waivers and is requesting final payment to Winger be made in the amount of $16,002.50.

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