June 4, 2015

Posted: June 4, 2015

Present: Langreck, M. Meyer, Holthaus, E. Meyer.
Absent: Bushman

Zak Kriener from the Ossian Bee and Don Dilaura were present during the meeting.

Mayor Covell called the meeting to order at 5:00 p.m.

Rick Zahasky, city attorney, addressed the Mayor and Council explaining economic incentive programs that are available for commercial and residential property owners. Tax Increment Financing (TIF) and Tax Abatement are the two primary programs available. Because of the way TIF works, Zahasky suggested to the Council the Tax Abatement program may work best for Ossian. He explained that with tax abatement the City does not have to advance any of its funds so no City money is tied up in the program. The tax abatement program encourages property owners to make improvements to their property that will increase the assessed value. The incentive for the property owner is a reduction in real estate taxes on the value of the increased assessment. Zahasky noted there are specific guidelines required in the State Code of Iowa to follow when establishing a tax abatement program. After giving a general idea of the steps involved the Mayor and Council questioned Zahasky on various things to gain a better understanding of the tax abatement program. In concluding the Mayor recommended that before the July meeting the Council closely review the sample plan prepared by Zahasky so the process to put a tax abatement plan in place can get started. At the July meeting the plan can be tailored to meet Ossian’s needs.

M. Meyer made a motion approving the following consent items May 4, 2015 council minutes, clerk’s reports and the monthly bills, seconded by E. Meyer, carried, one absent.

M. Meyer made a motion approving Shooter’s Bar & Grill’s renewal application for their Beer/Liquor/Sunday Sales Permit, seconded by Holthaus, carried, one absent.

Langreck made a motion approving Cigarette Permits, effective July 1, 2015 through June 30, 2016, for Bambinos, Casey’s General Store and Coop One Stop, seconded by E. Meyer, carried, one absent.

The Mayor and Council discussed the opportunity available to Iowa cities to implement a franchise fee on residents Alliant Energy and Black Hills Energy utility bills. If a franchise fee is implemented, the local option tax on the utility bill is removed (the local option tax is still collected by other retail sales inside the City). By swapping a franchise fee for the local option tax on the electric and gas bills, the City keeps 100% of the revenue collected from the utility customers located inside the City. Unlike local option tax revenue which gets distributed to entities county wide. With limited opportunities for funding sources it was the consensus of the Council this would be an opportunity to generate revenue for the City. The Council discussed possibly setting the franchise fee on both utilities at 2% which is an additional 1% from what is charged on the bills now. The matter will be further discussed at the July meeting.

M. Meyer made a motion approving a building permit for the Luana Savings Bank, seconded by Holthaus, carried, one absent.

The preliminary plans for the Jessie/Brooks/West Street paving project was reviewed by the Mayor and Council. The engineer on the project will be at a future meeting to go over specifics with the Council. The project is slated for FY16/17.

M. Meyer made a motion to adjourn, seconded by Langreck, carried, one absent. Meeting adjourned at 6:25 p.m.

May 2015 Expenses

  • Acentek-phone/internet charges 449.86
  • Aflac-employee deduction 242.28
  • Airgas USA-supplies 34.20
  • Alliant Energy-electric utilities 9739.49
  • Baker & Taylor-library books 291.96
  • Beans Tire Service-repair 45.00
  • Becker Hardware-services & repair 4852.39
  • Beckmans Ace Hdwe-misc.supp/rep 132.43
  • Black Hills Energy-gas utilities 257.66
  • Brian Zweibohmer-mtg reimb 11.00
  • Capco-supplies 5.50
  • Cardmember Service-library supp. 50.99
  • Casey’s-vehicle operations 73.44
  • City Laundering-services 135.89
  • Collection Service Ctr- employ.deduct. 990.00
  • Continental Research-supplies 181.67
  • Croell Redi-Mix-concrete 234.50
  • Decorah Implement-equipment 10650.00
  • DNR-operator permits 240.00
  • Don Dilaura-mtg reimb & repair 302.89 reimb
  • Doug Egeland Tiling-services 425.00
  • Farmers Union Coop-vehicle operations 306.76
  • Fayette Publishing-publication fee 309.04
  • Hawkins-operating supplies 1186.78
  • Iowa One Call-services 20.80
  • IPERS-May Ipers 3106.37
  • John Deere Financial-repair 154.86
  • Jude Zweibohmer-mtg reimb 13.30
  • Keith Lee-supplies 78.09
  • Keystone Lab-lab fees 235.00
  • Kyle Meyer-services 130.00
  • Luana Savings Bank-h.s.a.&loan pymt 62696.25
  • Malcom Enterprises-garbage service 5018.25
  • Marvin Meyer-mtg reimb 48.30
  • Mississippi Welders-services 277.96
  • Norby’s Farm Fleet-maint supplies 201.58
  • Ossian Bee-subscription 37.00
  • Ossian Lumber Co-supplies 133.88
  • Post Office-postage 192.82
  • Postville Vet Clinic-UPS chgs 40.50
  • Reminisce-subscription 14.98
  • Riley’s Inc-operating supp 30.00
  • Rite Price Office Supp-supplies 203.44
  • River City Paving-cold mix 266.98
  • Roger Colbenson-plants 1680.00
  • IRS-May Federal deposit 5503.96
  • Seventeen-subscription 12.84
  • The Iowan-subscription 24.00
  • Trans Iowa Equipment-equip repair 410.77
  • U.S. Cellular-phones & services 94.03
  • Wellmark-insurance premium 1824.90
  • Winn. Co. Recorder-fees 31.00
  • Zarnoth Brush Works-supplies 237.00
  • Ziegler Inc.-repair 697.80
  • Zorin Material Hdlg-equipment 3108.70
  • May payroll 13451.39

Total 131125.48


May 2015 Expenses by Fund

  • General 35871.22
  • Road Use 6943.74
  • Employee Benefits 2124.90
  • Debt Service 62396.25
  • Water 10764.88
  • Sewer 13024.49

Total 131125.48


May 2015 Receipts

  • General 28277.04
  • Road Use Tax 3817.97
  • Employee Benefits 1148.37
  • Emergency 213.28
  • Local Option Tax 7117.16
  • Library Trust 550.00
  • Debt Service 101393.05
  • Cemetery Perp. Care 300.00
  • Water 9063.18
  • Sewer 11552.12

Total 163432.17