Kiel City Council authorizes promissory note, appoints audit contractor and approves equipment and vehicle purchases

The Kiel City Council approved multiple fiscal and operational items at its meeting, including authorizing issuance of a $167,513.64 general-obligation promissory note to extend a 2019 bond payment, awarding an audit engagement to Baker Tilly, purchasing DPW equipment, completing two surplus vehicle sales and approving purchases for two 2026 fleet vehicles.

Promissory note: City staff (Speaker 3) explained the city faced an amortization this year on a bond issued in 2019 and proposed extending the payment schedule so the city could continue its existing payment pattern and preserve short-term cash flow. Council moved and approved authorization for the issuance and sale of a $167,513.64 general-obligation promissory note; the transcript records a roll-call outcome of "motion carries 5 0." Staff noted the extended payment would carry a final payment date of 02/10/2029 and referenced an effective interest rate of about 5.221% as discussed in the meeting.

Audit contract: Staff said Baker Tilly was asked to provide a proposal after frustration with audit timing. The meeting packet compared two proposals and referenced CLA's quote of $62,100; Baker Tilly’s quoted amount is present in the packet but was not clearly transcribed in the meeting audio. Council voted to approve contracting with Baker Tilly for the 2025 audit; the roll call recorded one dissent and the motion carried 4-1. The packet also referenced a guaranteed audit completion date of Sept. 30, 2026.

Equipment and vehicles: Council approved a small purchase — an exhaust/ventilation fan for the DPW shop for $1,463.98 — after staff presented CFM calculations demonstrating need for welding and painting work. The council approved sealed-bid sales of two surplus vehicles (a 2003 Chevy 2500 and a 1999 van) to the highest bidders, and approved purchases for two 2026 model fleet vehicles from a local dealer (Ewald) — a Silverado (approx. $41,260) and a Chevy Traverse (approx. $40,049) — after discussion of price, warranty and local service access. The transcript shows those motions were moved, seconded and approved as recorded.

Routine business and adjournment: The council approved receipts, disbursements and payment of bills and then adjourned the meeting.

Provenance: action sequence begins at SEG 006 (promissory note discussion) and continues through the end of recorded votes and adjournment at SEG 1018.

Notes on numeric/packet data: some dollar figures and packet line items were garbled in transcription; the council-recorded amounts for the promissory note ($167,513.64), DPW fan ($1,463.98) and the sealed-bid winning amounts reported in the packet are transcribed above. The Baker Tilly proposal amount in the meeting audio/notes was not clearly transcribed; CLA's quoted $62,100 appears explicitly in the packet and transcript.

What happens next: staff will implement purchases and complete the sale paperwork; the audit contract implementation timeline was discussed with a target completion guarantee referenced in the packet.