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Osawatomie council approves sale of generator parts, awards transformer bid and adopts 2027 budget policies
Summary
The council approved Resolution 1379 to sell decommissioned Norberg generator parts, awarded a bid for two reconditioned water-plant transformers to TNR Electric (amounts listed in staff presentation), and adopted Resolution 1383 setting 2027 budget policies that prioritize a 90-day operating reserve and limit utility fund transfers.
At its June 11 meeting, the Osawatomie City Council approved several administrative measures including the sale of surplus generator parts, the purchase of transformers for the new water treatment plant, and new budget-direction policies for fiscal 2027.
Councilman Shastine moved and Council Lady Phillips seconded approval of Resolution 1379 authorizing the sale of parts from decommissioned Norberg generating units that dated to the 1950s–1960s; staff noted the parts may have limited resale value and would be sold to parties that can use them.
The council then approved Resolution 1380 to award bids for transformers required by the new water treatment plant. Staff explained the plant’s expected electric demand, the need to order transformers now given long lead times, and recommended awarding reconditioned units to TNR Electric. The amounts listed in the staff presentation were $10,513 for the 225 KVA unit and $14,610 for the 500 KVA unit; the motion to award the bid passed after a mover and a second were recorded.
On finance matters, the council adopted Resolution 1383 establishing budget policies for the 2027 fiscal year. Staff said the current draft budget is roughly $1.4 million larger than the prior year and that property taxes, as presented, would comprise about 18% of the total budget; the resolution directs staff to keep the mill levy only as high as necessary, to prioritize rebuilding a 90-day operating reserve, and to limit transfers from utility funds to bond obligations plus no more than 5% of estimated additional utility revenues. Council members asked about timing for reaching reserve goals and staff said more details will appear in the full budget later this summer.
Two items related to utilities were discussed but not acted on: Resolution 1381 would authorize staff to file a motion with the Kansas Corporation Commission to transfer service territory for affected Northland parcels back to Evergy, but Michelle, the deputy city manager, recommended delaying any filing until zoning and development approvals are finalized so the city does not permanently cede service territory if the project does not proceed. Resolution 1382 would authorize negotiations for a new franchise agreement with Evergy so the city can continue to collect franchise-fee revenue; staff will pursue negotiations but no final agreement was approved tonight.
All motions recorded in the transcript carried; the meeting then moved to council reports and adjourned.
