Mantorville reviews preliminary 2024 budget; considers $1M Highway 57 bond and utility rate increases

City Financial Advisor Mike Bubany, via an email summarized for the council, outlined preliminary financing considerations for a planned Highway 57 project. Bubany’s example showed that if the city bonds $1 million over 15 years, the debt levy could be roughly $90,000 to $95,000 assuming an interest rate near 3.9%; the council was told that a levy related to such bonding would not be levied until 2025. The typical process described in the memo: receive bids, present formal recommendations at the next council meeting, then approve bonding and close funds approximately two weeks after approval. The minutes note MnDOT (the Minnesota Department of Transportation) is heading up the project and may require payment from the city earlier than the bond closing, which could complicate timing.

Council also discussed water and sewer rates for 2024. Bubany recommended at least a 1.5% increase, with 3% preferable to cover anticipated cost increases; council did not set rates at the meeting. The preliminary budget presented includes a 5% levy scenario and a 3% cost-of-living adjustment (COLA) for city employees; merit-based raises were not included and the clerk was asked to produce a 2% merit scenario for comparison.

On administrative items, City Clerk-Treasurer Gretchen Lohrbach said the city’s IT contract with On-Site Computer rose to about $400 per month from an earlier estimate near $260; she will verify past amounts and circulate updated budget spreadsheets. The council signed a Quitclaim Deed related to Riverside Park after attorney review clarified the city’s interest is an easement rather than ownership. Councilmember Jeffrey Ingalls moved and Councilmember Jessica Bradford seconded a motion to declare Councilmember Greg Rud’s seat vacant due to extended medical absence; the motion passed 4-0 and the clerk will post the vacancy notice.