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Keokuk staff report $1M in unspent bond funds; council plans sewer-rate review
Summary
City staff told the Keokuk City Council that roughly $1 million remains from a 2021 capital bond originally issued for plant equipment, and council signaled it will review residential sewer rates (no rate change adopted at this meeting).
City staff reported Aug. 7 that money borrowed in 2021 for plant equipment — an original bond amount of $1.8 million — still has nearly $1 million unspent and that the city is evaluating eligible uses for the funds, including equipment and wastewater collection-system work.
Tom (staff) briefed the council that engineering and some monitoring work have been paid and that the city is positioning to spend the remaining funds on planned plant upgrades and monitoring efforts. "We bonded for $1,800,000 originally for that," Tom said, adding that about $100,000 was spent on engineering and roughly $470,000 had already been used on monitoring and cleanup work.
Staff warned that some pending projects, including a first-flush study in Des Moines, could increase near-term expenditures. The consultant cautioned project complexity could push costs higher if hidden conditions are found; Tom noted excavation or work near a historic brick arch could raise costs into the hundreds of thousands.
Separately, council members discussed the city’s sewer-rate policy. S1 said residential sewer rates have not been adjusted since 2019 while commercial rates were placed on a 10% annual increase beginning in 2024. "We will be wanting to look at doing some changes to the rate structure on the residential side during the next year," S1 said. No rate ordinance or vote occurred at the Aug. 7 meeting; council instructed staff to return with proposals for review.
Why it matters: Available bonded funds can accelerate overdue capital work at the wastewater plant, but unexpected project costs and decisions about shifting debt service from property taxes to user rates could affect both the general fund and sewer customers.
What’s next: Staff will inventory eligible plant projects and return with specific recommendations and potential rate proposals for council consideration in coming months.
