LE MARS — On Tuesday, Jan. 14, at 12 p.m., the Le Mars City Council will meet for a special session aimed at approving a multi-million-dollar bond purchase agreement to fund crucial water infrastructure upgrades in the city.
The meeting will focus on approving the financing for several water projects, including the construction of a reverse osmosis water treatment plant, a new water well, and a water main.
Council’s Focus on Bond Purchase and Water Infrastructure Improvements
The total cost for these major water projects is estimated to be $27.2 million, which includes engineering fees, potential unknown expenses, and contingencies.
The water loan agreement will authorize financing up to $39.9 million in bonds, though the plan is to spend around $27.2 million.
The city will be paying off the debt through increased water rates over the next four years.
Mayor Rob Bixenman, who is unable to attend the meeting due to prior commitments, has delegated the responsibility of presiding over the meeting to Mayor Pro Tem Steve Wick.
Finance Officer Joe Mohning has assured that the process will be quick, estimating that the bond purchase approval will take just five minutes.
Final Approval of Water Projects at December Meeting
During the council’s December 17 meeting, the council members had already given their final approval for the water loan agreement, which will fund the new reverse osmosis water treatment plant, Well 15, and the water main project.
The total bids for the three projects amounted to $22,875,955.59, significantly lower than the initial engineer’s estimate of $30,097,285. The revised total, including all fees and contingencies, is $27.2 million.
The treatment plant’s construction will be handled by Hoogendoorn Construction from Canton, South Dakota, which submitted the lowest bid of $20,390,000.
L&L Builders of Sioux City, with a bid of $2,198,285.99, was awarded the contract for Well 15, which came in lower than the estimated $2,494,875 cost.
Vander Pol Excavating from Orange City was awarded the water main contract with a bid of $287,639.60, a figure significantly lower than the initial estimate of $652,410.
Financing the Water Projects: Bonds and Loan Agreement
The water revenue loan agreement being approved on Jan. 14 will serve as a line of credit for the city to finance the projects.
The city has appointed Dorsey & Whitney LLP, a law firm from Des Moines, as its bond attorney. The bond sale will be handled by D.A. Davidson & Co., a firm with offices in various locations, including Des Moines.
The bond purchase will allow the city to begin construction on the projects, which are essential for meeting the city’s long-term water supply and infrastructure needs.
Increased Water Rates to Support Financing
To repay the loan, the city will increase water rates over the next four years. This increase is necessary to ensure the city has the funds available to cover the costs of the water bond purchase and the debt repayment.
Other Key Updates from the Council Meeting
Apart from the bond approval discussion, several other important updates and reports were shared during the meeting:
- Annual Reports: Public Facilities and Cemetery Supervisor Brad Eppling and Street Supervisor Scott Kneip presented their annual reports, giving insight into the ongoing work in their respective departments.
- Town Hall Meeting: Mayor Rob Bixenman announced that his first town hall meeting will take place at 5:30 p.m. on Thursday, Jan. 30. The goal of the meeting is to encourage greater public input on decisions made by the city council, particularly on issues like the city’s budget.
- Election Sign Reminder: Council member Sturgeon reminded residents that election signs should be removed from yards. “The election was in November, so if you have a sign, it should not be up anymore,” he said. He encouraged residents to store the signs in their garages or other spaces.
- Approval of Payments and Appointments: The council approved a total of $1,569,241.25 in bills for the period ending Dec. 31. Additionally, Tom Hansen was reappointed to the Parks and Recreation Committee for another three-year term, which will run until Dec. 31, 2027.
- Liquor License Approvals: The council approved two liquor licenses for Habitué Coffeehouse and Bakery, including the renewal of a Class C license and a five-day license for Jan. 14-18 at 800 Prospect St. SW.
- Floyd Valley Healthcare Praise: Mayor Pro Tem Steve Wick took a moment to express his gratitude for the excellent care provided by Floyd Valley Healthcare, where his wife had undergone knee replacement surgery. He praised the healthcare staff for their top-notch service and care.
Moving Forward with Essential Water Projects
The Le Mars City Council’s special meeting on Jan. 14 is an important step in moving forward with essential water infrastructure projects that will help meet the growing needs of the city.
The council’s efforts to secure financing through the bond purchase will ensure that these projects are completed on time and within budget, while the increase in water rates will ensure the city can manage the financial burden.
With the approval of the bond purchase, Le Mars will be better equipped to handle its water supply challenges, ensuring safe and reliable water access for residents now and in the future.
The council’s commitment to improving the city’s infrastructure and fostering greater public participation will help maintain the quality of life for residents in the long run.
Disclaimer- Our team has thoroughly fact-checked this article to ensure its accuracy and maintain its credibility. We are committed to providing honest and reliable content for our readers.
Archer Bannister is a journalist with 4 years of experience covering hard-hitting stories. Currently working with Mikeandjonpodcast, Archer specializes in delivering timely and in-depth updates on a variety of topics, including crime news, politics, and national issues affecting the USA. His expertise and dedication to delivering accurate, impactful news make him a trusted voice for audiences seeking to stay informed on critical topics.
