Jefferson city council member Dave Sloan reported at the Sept. 14 meeting that in receiving the bids for the new animal shelter, “we got kind of punched in the face again.”
He said the committee is “scrambling,” and planned to look for “alternative financing” for the project. Sloan did not provide bid totals, but city administrator Mike Palmer told the county supervisors a day earlier that bids ranged from $890,000 to $980,000.
The engineer’s estimate for the building is about $740,000 for the 3,0000-square-foot metal building.
Also at the meeting, the council approved a financial policy that “lays out a road map for the finance committee,” according to committee member Harry Ahrenholtz. We’ve always had a policy, but nothing as descriptive as this.”
City administrator Mile Palmer said city staff, the finance committee, and Tim Oswald, the city’s financial advisor, spent a year working on the policy.
The policy calls for the city to maintain cash reserves of 50 percent of expenditures in the general fund. The city has that cash reserve now, Palmer said. After that 50 percent is put in reserve, the city would put funds into an emergency fund, up to 20 percent of general fund expenditures. The city would draw from that fund for expenses like those incurred in derecho clean-up. Next would be a discretionary fund.
All funds would still be accessible.
“Those are very significant changes we’re looking forward to starting to implement,” Palmer said.
Another change is that when expenses surpass the amount budgeted, the city will amend the budget immediately rather than waiting until the end of the fiscal year.
The debt management portion of the plan calls for the city to have a 5-year capital improvement plan for all departments, and 5-year projection of utility expenses.
The city also hopes to build reserve funds for use for equipment, building maintenance needs, and economic development.
“This will put us on a much stronger footing, especially when we go to bond,” Palmer said.
The council approved a $145,000 façade improvement grant for the building at 114 N. Wilson Ave, now Art on the Fly. The building is owned by Jolene Peters.
The grant application describes Art on the Fly as “an art studio that offers experiences that nourish the mind, body and spirits. We offer art classes in a variety of mediums to ages 3-103 years old.”
The project addresses the front, back and alley side of the building. “This will be a really great project and make a big improvement to that building,” city building officer Chad Stevens said.
Peters has utilized design expertise from Main Street Iowa. The project includes removing the distinctive blue from the front of the building.
Total cost of the project is $294,139.
