Sheldon, Iowa — When the Sheldon City Council met Wednesday they gave their approval to the wording of a proposed ordinance that specifies the purposes for which franchise fee revenues from MidAmerican Energy would be used. “A portion of the revenues will be used for property tax relief, i.e. to pay obligations that would otherwise be paid with funds generated by property tax levies. The annual amount used for property tax relief will be approximately equal to 37.5 percent of all the annual, estimated local option sales tax revenues that would have been generated by the one percent tax on the sale of natural gas and electric energy but for the imposition of franchise fees on such sales. The remaining franchise fee revenues will be used for public safety (including the equipping of fire, police, emergency services and civil defense departments) and for the construction, reconstruction, or repair of public grounds associated with public safety. A public hearing will be held on June 19th, with the first reading of the ordinance on August 7th. The proposed fee for residential customers is five percent, and two percent for non-resident users of gas and electric service from Mid-American Energy.
In other business, the council accepted the low bid of $1,025,771.76 from Vander Pol Excavating for the work on the Crossroads North Business Park. The bid was higher than the engineer’s estimate of $885,000, but it was the council’s contention that with the conditions contractors are currently facing, rebidding the project would not result in a lower bid. $850,000 of the cost was already included in the financing for the purchase of the land. The remainder of the cost will come from recent City land sale proceeds.
The council moved the new water rate ordinance on to its third reading during Wednesday’s meeting, as well as the ordinance extending the 45 miles per hour speed zone on Highway 18 to the east edge of the city limits. Signage updating the change will be done by the Iowa Department of Transportation.
The council approved a request for fireworks to be used during the Skillet concert at this year’s RiseFest. The fireworks effects that will be used are referred to as ‘cold spark CSA electrically rated ultra-safe cold spark effect fountain simulators’.
The council also heard a report on the H.C. lane building. They were told that the footings have been poured and they are waiting for the footings to cure. Weather permitting the wall will be installed next week, and the interior beam has been installed. The alley behind the building will remain closed until the city receives an assurance from the structural engineer that it is safe to remove the barricades.
Several decisions were made with regard to employee health benefits. They included a change in the life insurance and disability coverage from Mutual of Omaha to UNUM insurance and the decision to offer full-time employees their choice of two health plans for the new plan year.
The meeting began with the swearing in of Greg Geels as mayor, and Wayne Barahona as at-large councilman. Both men won their seats in a special election held last month.
Brad Hindt (right) swears in Mayor Greg Geels
At-Large Councilman Wayne Barahona (left) is given Oath of Office by Mayor Greg Geels
