Auditor says unincorporation will not remove City of Mt. Union?s debt

BY BROOKS TAYLOR

Mt. Pleasant News

Bruce Hudson, executive director of the Regional Utility Services System (RUSS), had a question for the Henry County Board of Supervisors Tuesday during the board?s regular meeting.

Hudson asked the supervisors whether they had any conversations regarding Mt. Union?s plans to proceed with the unincorporation process.

Supervisor Chairman Gary See said the board has not and doesn?t plan any conversations?yet. ?To me, I think we should be reactive.?

RUSS owns the Mt. Union wastewater treatment system, and a significant factor behind Mt. Union?s exploration of unincorporation is delinquent customer sewer bills and legal costs incurred through a number of court proceedings with RUSS concerning the delinquencies.

Henry County Auditor Shelly Barber told Hudson that any Mt. Union plans for unincorporation are far from a done deal and the process could be lengthy. ?They (state) do not take these things lightly,? Barber said, noting that she has had a discussion with a representative from the Iowa League of Municipalities over the matter. ?They (Mt. Union) will not be free of the debt they owe,? Barber continued. ??That (debt) would be levied in a special assessment or levy.?

Hudson said he doubts that Mt. Union has enough infrastructure to sell to satisfy its debt.

Asked about the payment progress of Mt. Union residents, Hudson said none of the five property owners on which shut-off valves were installed, have satisfied their debt. Other residents, however, are keeping current on their payments, he stated.

?Obviously, this is out of control. It should have been resolved years ago,? Hudson noted.

The RUSS executive director said that he can?t prevent Mt. Union from unincorporation, but RUSS must have a plan in place because they own the system and must maintain and operate it no matter what happens.

Hudson said that RUSS?s finances have improved greatly. ?I can assure you that RUSS is rock solid (financially) now? My vision long-term is to get this thing rolling.?

RUSS will never install another sewage system without shut-off valves, Hudson told the board.

Henry County Engineer Jake Hotchkiss, in his weekly report to the board, said the contractor for the 220th Street reconstruction project only has three-fourths of a mile left of pavement to crush. ?It was a slow week last week (on the project),? he acknowledged, ?as we encountered poor subgrades that resulted in more work for the contractor.?

Work began Tuesday on the Ash Avenue bridge replacement project, the engineer said. Due to the work, Ash Avenue is closed from the Hillsboro city limits north on Ash to 307th Street.

The engineering department, Hotchkiss reported, has applied for a state grant for an 84-inch soil finisher. The engineer compared the equipment to a power rake. The grant requires a 20 percent local match.

Last week the secondary roads department spent a lot of time on 265th Street, placing crosspipe, installing an entrance, replacing another entrance and hauling resurfacing rock.

The department also continued a ditching project on 325th Street, mowing shoulders of rural roads and completed a ditching project on Nolton Avenue.

As is the case many years for governmental bodies, supervisors hosted a public hearing and after receiving no written or verbal comments, approved an amendment to the fiscal 2016 budget.

The amendment reflected $527,907 in additional revenue and $272,086 in additional expenses, leaving a net gain of $255,822. The county anticipates an ending fund balance of $3,881,400 on June 30, 2016.

Much of the additional revenue was grants ($209,245) and sale of property ($247,790). Major additional expenditures were for building repairs and maintenance ($152,486) and an increase in public health expenses not budgeted for ($41,000).

In supervisor sub-committee reports, Greg Moeller reported on the recent meeting of the Southeast Iowa Regional Planning Commission (SEIRPC). Moeller said the Brazelton project, which features 19 apartments, is to be finished the first part of July.

Three houses have qualified for the housing rehabilitation program in Wayland, but there is funding for five more, Moeller said.

Finally, he noted that the City of Mt. Pleasant received a $600,000 community development block grant (CDBG) for the Jay Street sanitary sewer project. The third time proved to be the charm for Mt. Pleasant as it applied for the grant twice previously.

Supervisors will meet again in regular session Thursday at 9 a.m., in the Henry County Courthouse.