Keiser council approves 2024 budget, passes code enforcement ordinance and establishes sewer debt reserve tied to new loan

Keiser City Council on Jan. 24 approved the city’s 2024 final year-ending budget, passed a revision to the city’s code-enforcement ordinance and established a debt reserve required by a new sewer loan.

Mayor Rick Creecy opened the meeting and noted the city had received an ANRC sewer award letter, which he accepted and signed. Councilmembers voted unanimously to open a new sewer debt reserve account and to transfer the city’s one-cent sewer sales-and-use receipts into that account to meet bond counsel’s requirement of a 10% debt reserve tied to the loan. The council previously discussed the loan in a Jan. 4 special session, where members also noted the possibility that sewer rates could rise, "up to 80%," as part of financing discussions.

Councilmember Laura Smith moved to accept the 2024 final year-ending budget; Donna Bell seconded and the motion passed. The council also considered and approved changes to Ordinance 2024-01: Ordinance 2025-01 modifies the definition of "rubbish," updates terminology and adjusts penalties. The council approved reading Ordinance 2025-01 by title and moved to adopt it; they also approved an emergency clause that makes the ordinance effective immediately.

Mayor Creecy listed several grant efforts. The council approved applying or reapplying for multiple grants (including a reapplication for a Mitigation grant and grant requests through Firehouse Subs and BCBS for equipment and training). The council reported an awarded Fire Protection Grant that will fund three scuba packs and two AWIN radios for the fire department.

The council voted to continue FY2025 meetings under the existing meeting format following Roberts Rules of Order and approved a standing limit of five minutes per citizen for public comments. The meeting also approved a list of customer credits for 2024.

At a Jan. 4 special meeting, Chief Jerry Hamilton reviewed legal limits on code enforcement, advising that the city must align ordinance language with state and constitutional law; that guidance underpinned the ordinance amendment passed on Jan. 24.

Votes at a glance: - Approval of Dec. minutes: motion by Donna Bell, second Joey Jackson; outcome: approved (all present said Aye). - Approval of Jan. 4 special meeting minutes: motion by Joey Jackson, second Donna Bell; approved. - Approval of financial reports: motion by Laura Smith, second Donna Bell; approved. - Establish Sewer Debt Reserve (transfer one-cent sewer receipts): motion by Joey Jackson, second Donna Bell; approved. - Accept 2024 final year-ending budget: motion by Laura Smith, second Donna Bell; approved. - Ordinance 2025-01 (amending Ordinance 2024-01) — reading, passage and emergency clause: motion to read and pass by Joey Jackson and others; motions carried; ordinance adopted and emergency clause approved. - Approve meeting format/Roberts Rules continuation: motion by Donna Bell, second Joey Jackson; approved. - Allow citizens up to five minutes for public comment: motion by Joey Jackson, second Donna Bell; approved. - Approve customer credits for 2024: motion by Joey Jackson, second Laura Smith; approved.

What this means: The city has taken required steps to satisfy bond counsel by creating a sewer debt reserve account and has adopted immediate changes to its code-enforcement ordinance. Several grant efforts are underway; one Fire Protection Grant award will fund equipment for the fire department. Officials flagged that sewer financing could lead to a substantial rate increase during implementation discussions; no formal rate change was voted at the Jan. 24 meeting.

The council adjourned after handling other routine business. Further action on annexation concerns raised by Dunavant-area residents and on the West Main subdivision zoning will proceed through follow-up meetings and staff work.