Atkins council approves pay application for fire station, reviews FY27 budget and sets reserves

Atkins City Council approved pay application number 12 to Garland Construction and spent much of its Jan. 27 meeting reviewing the proposed fiscal year 2027 budget, including plans to create a fire department capital and debt reserve fund and a sewer sinking fund.

City Administrator Flory told the council the original contract for the fire station improvement project was $3,376,000 and that the work is roughly 93% complete. He said the net contract change orders total $10,719.95, bringing the project total to $3,386,719.95, and that total completed work and stored materials to date are $3,144,729.95. "They're been a great contractor. We're nearing the end here. About 93% complete at this point," Flory said. He explained the contract retains 5% as retainage by law and that the current pay estimate due under pay application #12 is $263,591.25. Council approved the pay estimate by voice vote.

The council also reviewed several budget proposals and reserve actions for FY27. Flory proposed creating a dedicated fire department capital and debt reserve to hold leftover bond proceeds and FEMA grant dollars that must be used for fire purposes; staff cautioned the city must follow bond and grant restrictions before repurposing those dollars. The packet also included a proposal to establish a sewer sinking fund of about $365,000 to meet State Revolving Fund (SRF) loan covenant expectations by holding roughly one year’s payment in reserve.

Flory outlined a planned capital project for a water distribution system improvement that would start in FY27 with $350,000 set aside for engineering and RFP work, with construction expected to continue into FY28. He warned that water sales revenue is relatively flat and urged careful expense management to avoid leaning on property taxes for utility needs.

Councilmember Bell praised the council’s focus on fiscal discipline, calling the budget work "the fruit of that labor" and noting the city's goal to avoid increasing the tax levy where possible. Flory also said increased certified TIF revenue and higher valuations will allow the city to levy roughly $80,000 less in property taxes this year compared with the prior year.

Other items: Flory said staff received about 20 resumes for the public works/wastewater superintendent posting and recommended an interview panel of the administrator, mayor and several council members. The council approved the consent agenda and adjourned at approximately 7:04 p.m.

What’s next: The council carried the pay estimate by voice vote and staff will proceed with the project closeout and retainage processes. Budget discussions will continue at future meetings as staff refines line items and returns with expenses and proposed ordinances as needed.