Vernon Center council approves consent agenda, forgives interfund loan and moves sewer reserves

The Vernon Center City Council approved a broad consent agenda and a set of financial resolutions at its regular meeting.

Clerk Kara Hansen told the council that the city had submitted engineering invoices to USDA Rural Development in May and June but was not likely to receive reimbursements until September or October. Because the city’s 410 fund lacked sufficient cash to repay an interfund loan scheduled for June 2025, Hansen recommended forgiving the loan under Resolution 2025-21. Councilor Adam Finney moved to approve the resolution and Councilor Emily Edwards seconded; the motion passed unanimously.

Councilors also approved Resolution 2025-22 to accept a $25 Amazon gift card donated by Immense Impact for use by the city clerk and passed Resolution 2025-23 to transfer $40,000 from the 607 Sewer Reserves Fund into the 420 Sewer Service Line Project Fund. Hansen explained that recent and pending sewer lateral replacements (including work at 301 West St. N and two additional properties signed up for SSS financing) plus the current negative balance in the 420 account would otherwise leave that fund about ($36,445.77) at year-end; the transfer is intended to keep the account positive while invoices and reimbursements are resolved.

The council approved additional bills and accepted routine reports included in the consent agenda (June bank reconciliations, month deposit and check totals, expenditure and revenue guidelines, project balance spreadsheet, upcoming calendars, and July public safety and fire department reports). All motions related to these financial actions were seconded and carried unanimously.

The council directed staff to continue pursuing USDA-RD reimbursements and to provide updated figures on outstanding loans and offsets so the council can finalize decisions on larger capital projects affected by those balances.