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Mason approves purchase and gift agreement for property appraised at $1.595 million
Summary
The council approved a deal to purchase land from an anonymous donor for $280,000 and accept a gift of additional land; the city plans budget amendments financed from fund balance and expected bond reimbursements, council voted 7-0.
The Mason City Council on Sept. 15 approved a real estate purchase and sale agreement and an agreement to accept gifted land from an anonymous donor for a property with a total appraised value of $1,595,000, authorizing a purchase price of $280,000 and directing necessary budget amendments.
Council members asked where the required budget amendments — referenced in materials at roughly $350,000 — would come from. City staff said the finance director anticipates Department of Public Works projects will come in under budget this year and that the city’s fund balance can cover the purchase temporarily. Staff also said a bond reimbursement tied to DPW funding is expected to restore the fund balance when the bond sale concludes.
Mayor Pro Tem Clark pressed for clarity on whether the budget amendment would force cuts to other projects. City staff replied that they expect contracting conditions to allow other DPW projects to come in under budget and that the fund balance plus anticipated bond reimbursement will cover the purchase without immediate reductions elsewhere.
Council approved the motion 7-0. The agreement directs staff to make the budget amendments necessary to complete the purchase and accept the gift; staff did not provide a line-item accounting of the source funds at the meeting beyond the general fund-balance and anticipated bond reimbursement explanation.
