Council approves consent items, hires utility-rate consultant, OKs water-tower work and sets preliminary 2026 levy

The Mound City Council on Sept. 23 approved multiple routine and capital measures, including a consent agenda of six items, a contract for a utility rate study, a contract for water-tower engineering work and a preliminary 2026 levy and budget.

The council approved the consent agenda (items a–f), which included approving payment of claims; approving Sept. 9 minutes; Resolution 25-76, a variance at 1705 Baywood Shores Drive (planning case number 2509); Resolution 25-77, a public lands permit issued after the fact at 4805 Island View Drive (Devon Commons); pay request No. 1 to GMH Asphalt Corporation for $1,211,372 for the 2025 Street Improvement Project; and pay request No. 1 (final) to Allied Blacktop for $114,866 for the 2025 seal coat project. The consent agenda passed on a roll call vote: Council Member Herrick, Council Member McEnany, Council Member Pugh, Council Member Castellano and Mayor Holt voted aye.

Following the consent items, the council approved a professional services proposal from Ehlers to perform a utility rate and long-term financial management study to support financing options for a potential future water treatment plant. Kyle Sawyer of Ehlers, who presented the firm’s approach, said the work is split into an immediate cash-flow update to set 2026 rates and a deeper 2027 analysis of funding scenarios, including the effects of moving from quarterly to monthly billing. The council approved the proposal by voice vote after a motion and second; the motion passed unanimously.

The council also approved assigning KLM Engineering to lead design and engineering for recoating the Evergreen (Well 8) water tower in 2026 and authorized staff to proceed with contracting consistent with procurement rules. Staff noted KLM had provided the lower bid among two firms solicited and that KLM already performs tower inspections for the city. A council motion to approve KLM’s proposal passed by voice vote.

On the budget front, the council adopted Resolution No. 25-78, certifying a preliminary 2026 general fund budget and setting a preliminary levy increase of 6 percent. City staff said the 6 percent preliminary levy intentionally includes a one-percentage-point buffer above the 5 percent called for in the city’s financial management plan; council members were reminded that the preliminary levy can be lowered before certification in December but not increased. Staff provided illustrative homeowner impacts on-screen: for an assessed value example of $250,000, the annual increase was shown as $23 (about $1.92 per month); for a $450,000 home, $46 per year.

Other formal motions at the meeting — including procedural adjournments to the Mound Housing and Redevelopment Authority meeting and return to council — were approved by voice vote.

Votes at a glance - Consent agenda (items a–f): approved (roll call: Herrick, McEnany, Pugh, Castellano, Holt — ayes). Items included Res. 25-76 (variance, planning case 2509) and Res. 25-77 (public lands permit, 4805 Island View Drive), pay requests to GMH Asphalt ($1,211,372) and Allied Blacktop ($114,866). - Utility rate study (Ehlers proposal): motion to approve proposal — approved (voice vote; unanimous as recorded). - Evergreen Water Tower Coating Project (KLM Engineering proposal): motion to approve proposal — approved (voice vote; unanimous as recorded). - Resolution 25-78 (2026 preliminary general fund budget and levy): motion to approve resolution — approved (voice vote; unanimous as recorded).

What the council asked staff to do next - Coordinate a KLM-design workshop (staff indicated an approximate 90–120 minute workshop; council set a tentative workshop for Nov. 12, 4:00–6:00 p.m.). - Work with Ehlers and finance staff to update cash flows and set 2026 utility rates, and to take a deeper look at 2027 scenarios.

Sources: meeting transcript of Mound City Council, Sept. 23, 2025 (motions and roll-call recorded in the public minutes).