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Council hears early talks with county on 1st Avenue SE turnback; utilities and annexation are central issues
Summary
City engineer Matt briefed the council on preliminary negotiations with Lee County over a possible turnback of 1st Avenue Southeast. Staff said the city likely would replace most underground utilities (city‑owned) and may bond street costs, while annexing right‑of‑way could yield additional state aid mileage.
City engineer Matt updated the council on early discussions with Lee Seward County about a potential turnback of 1st Avenue Southeast to New Prague control.
Matt said the majority of underground utilities along the corridor are owned by the city and would likely require replacement, meaning the city would bear those utility costs. He said the county currently owns the storm infrastructure and common turnback negotiations consider splitting some street costs; he described a likely scenario of a roughly 50/50 split of street reconstruction costs, while utility enterprise funds would cover water and sanitary work.
Staff also discussed annexing additional right of way on the southern portion of the corridor ahead of a turnback, which would help the city qualify for state aid “bonus mileage” associated with state aid mileage calculations. Council members pressed how costs would affect the general levy and whether bonding would be used; Matt said the street portion could be bonded and would affect the levy while utility costs would be paid from the utilities’ funds.
Members said they may decline a turnback if terms are unfavorable and suggested pressing county officials for a better financial split; no final decision was made and staff will continue negotiations and return with formal recommendations if the county moves the process forward.
