City council set to take out loan for sewer work bonds



FORT MADISON – The Fort Madison City Council will vote on a resolution to take out a $20 million loan to begin the next phase of work on the sanitary sewer system.

The Council meets at 7 p.m. on Tuesday at the council chambers to approve the resolution that City Manager David Varley indicated at last week’s meeting was just a formality for the second phase of the rehabilitation of the city’s 40 year old sewer plant.

“This is money from the state revolving fund for the mandatory rehabilitation of the city’s 40 year old sewer plant,” Varley said last Tuesday. “The approval has already happened. Quite a while ago the state approved the loan of up to $20M for the city to use. As you know we’ve already started to complete Phase 1 and now were onto phase 2 and getting into the real money.”


He said most of the work done on phase 1 was new motors and wiring inside the building.

“It’s a very extensive project. This loan was approved a year or two ago. What we’re doing now is the paper work that is required for the state that we have to sign. Basically what it’s saying now is the money is in the bank and we can begin to drawn down. The money we’ve paid already on Phase 1, we’ve been using reserve funds, which are getting pretty low.

“This is the paperwork required by the state to get that loan money going. This is now just saying okay the money is available, but before you can use it you have to get this paperwork done.”

The city is also considering a resolution to enter into a service agreement with Ahlers and Cooney, P.C. as bond counsel on the notes.

In other agenda items,

– the city council is looking at several changes to city code with regard to zoning regulations. Several special use permit procedures are on the first reading of the ordinance changes specifically to the protocols of the Planning and Zoning Commission and Board of Adjustment and Appeals. The amendments affect Chapters 2, 19, 20-24 and 31 of the city code.

-the city council is considering a resolution to appoint Varley to the Southeast Iowa Regional Planning Commission for a period of one year.

-The city council will have the third reading on two ordinances, one a rezoning request at #5 and #6 East Limits to limited industrial, from residential; and the other a reading on amending the city building code.



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