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Atlantic City Council passes Loan Agreement resolution, Ambulance Svcs. Amendment

News

April 3rd, 2024 by Ric Hanson

(Atlantic, Iowa; UPDATED) – A Public Hearing was held this (Wednesday) afternoon in Atlantic, with regard to the Proposed Maximum Property Tax Levy for Fiscal Year 2025. The Council heard only one objection, and that was from Atlantic resident Barbara Stensvad, who reiterated the “significant protest” she spoke of at the last meeting of the Atlantic School Board, during their Budget Hearing.

During the Council’s regular session that began at 5:30-p.m., Mayor Grace Garrett administered the Oath of Office to Atlantic Police Officer Brock Thompson, who was promoted to the rank of Sergeant. Thompson joined the A-PD in 2017, and currently serves as Driving Instructor, Standard Field Sobriety test Instructor, Field Training Officer, and Drone Pilot. Thompson served in the U-S Marine Corps from 2012 through 2016.

Atlantic Mayor Grace Garrett congratulates Sgt. Brock Thompson on his promotion.

In other business, the Atlantic City Council passed a Resolution “Authorizing and Combining Loan Agreements, Approving the Future Issuance of General Obligation Bonds and Providing for the Levy of Taxes to Pay the Same.” The 5-year, $800,000 bank note through 1st Whitney Bank & Trust, carries an interest rate of 4.5%, and will be used to fund segments of the Capital Improvement Plan (CIP), including…$200,000 for Police Equipment & Vehicles, $230,000 for Fire Equipment, $100,000 for Library Equipment and Building Improvements, and $250,000 for Emergency Generators. A levy and the collection of taxes to pay for the CIP begins July 1, 2024, with a net annual sum of $184,780.

The Council passed an Order to Approve Second Amendment to Ambulance Services Agreement Between City of Atlantic, Iowa, the Cass Health System, Cass County Iowa, and Midwest Medical Transport Company. The agreement includes a subsidy fee of $40,000 per month from now through June 30, 2024, and an annual fee of $625,050 or $52,087 per month, from July 1, 2024 to June 30, 2025…an increase of 84.31%. City Administrator John Lund said voters in the County will have the choice in November, of approving a 75-cent increase in the County-wide tax levy and a small income tax to pay for the ambulance service, or vote “No.”

He said if the voters reject the proposed tax increase, the City would most likely have to resort to dramatic budget cuts to departments that cannot be sheltered through cost allocation through other funds, or it can borrow the funding to cover the annual payment, by paying for a new ambulance and equipment for Midwest Medical, for the City’s share of the agreement with the other taxing entities, which could result in a record-high property tax levy.

In other action, the Atlantic City Council passed a Resolution setting the date for public hearing on adoption of the FY 2025 Budget, as April 17, 2024. Lund said the budget reflects the Council’s priorities. FY 2025 expenditures, he said, amount to nearly $18.8-million. They also passed a Resolution “Approving Contract and Bonds for the 2024 Sanitary Sewer Rehabilitation Project.”

The Council agreed to Terminate City Clerk Services Contract with Marne Effective May 31, 2024, and they passed an Order to Approve The Retail Coach Contract Extension, which had been Tabled during the last meeting. And, since the Council took no action on a motion to Approve a Professional Services Agreement with Barb Barrick to Temporarily Provide City Clerk Consulting Services for the City of Atlantic, a Resolution to that effect, failed. Councilperson Elaine Otte on the search for a new City Clerk…

In other business:

  • The Atlantic City Council passed a Resolution “Authorizing and Combining Loan Agreements, Approving the Future Issuance of General Obligation Bonds and Providing for the Levy of Taxes to Pay the Same.” The 5-year, $800,000 bank note through 1st Whitney Bank & Trust, carries an interest rate of 4.5%, and will be used to fund segments of the Capital Improvement Plan (CIP), including…$200,000 for Police Equipment & Vehicles, $230,000 for Fire Equipment, $100,000 for Library Equipment and Building Improvements, and $250,000 for Emergency Generators. A levy and the collection of taxes to pay for the CIP begins July 1, 2024, with a net annual sum of $184,780.y.

The Council tabled a Resolution “Setting the Date for Public Hearing on a Proposed Ordinance Vacating the Street Located between 3009 Palm Street and 3101 Palm Street in the City of Atlantic, until they receive an update on the status of improvements to one of the properties included in the Right-of-way discussion.

Their final order of business, was to change the dates of the July 2024 Council meetings. The meeting will be held July10th and 24th, due to the fact the original meeting set for July 3rd, comes too close to the Independence Day holiday.