Zeth Baum

The meeting agenda covered several financial and planning matters, beginning with updates on the local healthcare situation, specifically the construction planning for a rural emergency hospital and the receipt of a $125,000 recruitment grant. Key discussions involved approving the consent agenda, which included minutes from previous meetings and cash receipts for January 2026. The council held public hearings and acted upon authorizing $500,000 in General Obligation Capital Loan Notes (GCP1) for essential corporate purposes, such as police/fire equipment and housing demolition, and subsequently authorized proceedings for up to $525,000 in related notes (GCP2). Another public hearing addressed the disposal of city-owned real estate at 116 North 7th Street to the Keokuk Neighborhood Initiative for developing tiny homes for veterans, contingent upon a development agreement. Finally, the council approved the initial reading of an ordinance conditionally rezoning property from residential and commercial districts to M2 Heavy Industrial District.

The Mayor provided an update on Insight's construction plans and a grant received for Rural Emergency Hospital development. The agenda included setting public hearings for a proposed Property Tax Levy and a Development Agreement with Main Street Keokuk, Inc., as well as approving a liquor license for Hampton Inn Keokuk. Multiple public hearings were held and subsequently closed concerning the authorization and issuance of General Obligation Capital Loan Notes totaling $500,000 (ECP-1) and $525,000 (GCP-2). The Council also authorized the disposal of city-owned real estate at 116 N. 7th Street, approved the initial reading of an ordinance to rezone property to Heavy Industrial District, and authorized the purchase of five gas detection monitors for the Water Resource Recovery Facility. Resolutions were passed to approve rate changes for Oakland Cemetery services and to allow the Mayor to enter an agreement with Ahlers & Cooney for legal services. The Historic Preservation Commission's annual report was accepted, and staff reported on Planning Commission activities and roof issues at the animal shelter/sewer building, noting the need to consult insurance regarding the original contractor's work.

The meeting focused on reviewing the proposed budget, noting minimal changes despite inflation, particularly for the wastewater plant which is operating at minimum staffing. Two line items were adjusted: one for sludge hauling contract percentage increase and another for increased diesel fuel costs for the generator, which is used under an interruptible service agreement with Alliant to save on electricity. Discussions heavily involved capital projects funded through specific accounts (Fund 610 and Fund 611), which originated from a 2023 bond issue for a belt press that is no longer needed due to the closure of the ADM plant. Key capital expenditures discussed included the purchase of a used end loader, installation of gas detection systems in buildings (estimated at $15,000), a primary digester rehab project, and the replacement of circulating pumps. A significant portion of the discussion centered on spending down the remaining balance in Fund 611 (approximately $1 million) on sewer-related projects to avoid negative arbitrage issues. This included a transfer of about $300,000 to cover the sewer infrastructure portion of the Belair street project. Another fund, Fund 613 (derived from an EPA settlement with DNR enforcement), contains $185,000 that needs to be spent on pre-treatment improvements. Projects identified for this fund included replacing circulation pumps and a proposed $75,000 expenditure for a clarifier turntable, though the speaker noted the benefit of standardization with existing equipment. The meeting also covered the ongoing First Flush Study related to the mandatory separation of combined sewer flows by 2029/2030 as per the consent order, noting the complexity of the remaining overflow issue at Third and De Moine.

The meeting commenced with the Pledge of Allegiance and roll call. The Mayor's report detailed a recent visit from the Director of the Iowa Economic Development Authority, focusing on tours of Main Street buildings, the Morfell apartments, and the Tangles building, and discussions regarding potential financial avenues for the SID center and a proposed housing renovation area. The Mayor also reported on the Southeast Iowa days event where property tax reform was a key discussion point. During citizen comments, a resident addressed the annual publication of salaries, suggesting grouping them by department or using a lump sum figure to mitigate public controversy, while affirming the city's obligation to provide detailed records upon formal request. The subsequent consent agenda involved approving minutes from various prior meetings and budget workshops, adopting resolutions concerning loan agreements for capital notes (with corrections made regarding the purpose, changing from 'essential' to 'general' corporate purposes), approving urban revitalization tax exemptions for multiple homeowners involving various property improvements, setting a public hearing for the disposal of a property, and appointing an individual to the city planning commission. There was also discussion and subsequent removal from the table of a resolution concerning a task force agreement, where council members discussed the structure, cost basis (pay plus 50% of hourly rate for temp labor through Task Force), and staffing levels for seasonal and continuous needs, acknowledging budget constraints imposed by recent cuts.

The meeting focused on budget deficit reduction strategies. Potential cuts discussed included eliminating funding for the River Museum (noting a net savings of $19,500 after accounting for donations), foregoing or reducing non-union personnel raises (potentially saving $32,800 after considering prior eliminations), and reducing the attorney line item budget by $60,000 by restructuring the arrangement for court work. Other potential savings involved eliminating fireworks funding, discontinuing city-provided flower seeds for park flower beds ($4,000), reducing airport line items ($10,000, agreeable to the retiring director), reducing travel budgets for City Hall administration ($2,000) and Public Works ($1,000), and requesting Animal Control ($7,000) and the Fire Department ($5,000) to find reductions in expense categories. There was also discussion regarding animal control operations, current fee structures for tags and fines, and the success of the low-cost spay/neuter program.