Sheldon, Iowa — The Sheldon City Council has completed their two budget sessions with a budget that includes a tax levy that is 43 cents per thousand lower than the current fiscal year.
One new feature is the creation of a Fire Department Depreciation Fund. Negotiations with the O’Brien And Sioux County townships served by Sheldon with fire protection, have made additional funds available. A portion of this money will go into the new Depreciation Fund which can be use for future needs of the department. Grants to the Fire Department can also go into the fund.
The council spent a good amount of time discussing the need for improvements on certain streets in the City. It is estimated that it will cost over two million dollars to rebuild 3rd Avenue from 11th Street to Hubbard, Oak Street from Wansink to North 18th Avenue, Rainbow Drive from Washington to Oak, Pine Street from 2nd to 5th Avenue, and 5th Avenue North from Pine street. There are ample funds in the City’s TIF, or Tax Increment Financing, account, but those funds can’t be used directly for street improvements. However, they can be used to pay off bonds. With that in mind, the council is considering bonding for the street project and shortly thereafter paying off the bonds with the TIF funds.
The council heard from a representative of DGR Engineering who has conducted a Utility Rate Study for Sheldon and recommends rate increases over the next five years. Since the largest users of water in the City now pay a much lower rate per gallon, DGR recommends that the increases over the five year period for these users increase at a higher rate. The council favors adopting a five-year rate increase plan to keep up with the cost of delivering water, with a new Rate Study to be done in three years.
A public hearing on the 2020/2021 budget will be held at an upcoming city council meeting.
