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Underwood council approves FY26 audit, $219,450 wastewater payment and personnel changes

Underwood City Council · July 1, 2026
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Summary

At its July 13 meeting the Underwood City Council approved a FY26 audit engagement, a $219,450 partial payment on the wastewater treatment project, two finance resolutions, insurance renewals, and personnel committee pay changes; it also set an Aug. 11 public hearing on a FY27 budget amendment.

Mayor Josh Madsen called the Underwood City Council to order on July 13, 2026. The council voted unanimously on a slate of routine and project-related items, including a FY26 audit engagement and a large contractor payment tied to the city’s wastewater treatment project.

The most consequential action was approval of Partial Pay Application #13 for the Wastewater Treatment Plant project: the council authorized a $219,450 payment to McCarthy Trenching. Councilor Keith Rodenburg moved the payment and Councilor Jodi Bose seconded; the motion carried 5-0. The payment follows status updates the sewer committee received from the contractor and engineer at a June 23 workshop.

Why it matters: the payment funds continued work on the wastewater plant that affects sewer service and utility budgeting. The council also adopted two finance resolutions by unanimous roll call. Resolution 26-07-01 closed out a 1-day GO Bond loan note 2026A, and Resolution 26-07-02 transferred $29,410.36 in LOST (local option sales tax) receipts for May and June 2026 to Roads ($22,057.78) and Sewer ($7,352.58).

Other approved items included an annual FY26 audit engagement with BerganKDV, renewal of workers’ compensation coverage with IMWCA, renewal of UnitedHealthcare and Principal insurance plans, and a $3,350 donation to UMBA to support community fireworks. The council also voted not to renew memberships with SWIPCO and directed public works to identify properties lacking exterior address numbers and to send mayor‑signed compliance letters.

Personnel changes approved on the recommendation of the personnel committee provided a 3% raise for part‑time employee #139 and a 4% raise for part‑time employee #146; full‑time staff received no general pay increase but the council approved paying an additional 15% toward full‑time employees’ health insurance. The pay changes were made retroactive to July 1, 2026. Councilor Keith Rodenburg moved the personnel recommendation and Councilor David Mace seconded; motions carried 5-0.

The council set a public hearing for the FY27 budget amendment on Aug. 11, 2026, at 6 p.m., and approved the consent agenda, including a claims register totaling $357,729.62.

Votes at a glance: the meeting record shows all formal motions noted above passed on recorded or voice votes that were unanimous (5-0). Several routine approvals — agenda, minutes, claims and insurance renewals — were also adopted without dissent.

The meeting concluded after department reports: Fire/Rescue reported 193 calls for the year and a $2,000 pig-bingo fundraiser; maintenance staff noted ongoing road and lift-station work and delivery of a new jetter; City Administrator Cindy Sorlien said the Veteran’s Office mobile van will be in Underwood on Tuesdays in August and that the city will migrate to upgraded financial software within about 30 days. Mayor Madsen adjourned the session at 7:13 p.m.