The City Council of Webster City voted unanimously Monday to finance Phase 2 of the Fair Meadow Drive rehabilitation and buy a street sweeper and snowplow with a new bond issue.

At a cost of $1.94 million, the Fair Meadow Drive project, which will see the busy thoroughfare on the city’s south side completely rebuilt this summer, is the most expensive item in the plan.

A new street sweeper, costing an estimated $355,348, and new snowplow expected to cost $285,000, round out the bond issue, which will see the city borrow a total of $2.82 million.

About 8.41%, or just over $237,000, will be spent on administrative expenses related to issuing the bonds, including an “underwriter’s discount,” a reduced price for the bond’s underwriters allowing them to make a profit on offering legal counsel, financial advisory consultants, a fee for an S&P Global rating, paying sales commissions, and miscellaneous expenses.

City Manager John Harrenstein assured the council it would not be necessary to raise the city’s debt service level to float the new bond issue.

It is expected a preliminary statement will be available for the council to review by August 4. Bids should be received by PFM Financial Advisors, LLC, the city’s consultant for bonding matters, on August 18, and a closing date of September 10, 2025, seems feasible. The bonds would be sold sometime in September.

In other financial affairs, the council approved staff requests to write off as uncollectible $33,808.84 in unpaid utility bills and $1,609.54 in unpaid city fees for the last fiscal year.

According to the agenda statement prepared by staff, the utility write-offs cover bad debts of “customers who have left us with a balance in utilities,” and also go toward paying for frozen water meters and miscellaneous electrical equipment repairs. This is an annual accounting procedure brought forward just before the end of the fiscal year to give a more accurate picture of the city’s finances.

The Finance Department asked the council to pass the first reading of a measure adding a new Article VI to the city’s Code of Ordinances, establishing a procedure for uncollectible debts, subject to the State of Iowa Setoff Program.

City Finance Director Dodie Wolfgram told the council the state Revenue Department requires Iowa cities to have a list of debts subject to setoff in order to participate in the program. The Setoff Program is a debt collection service run by the state to assist cities in collecting delinquent fees.

A long list of fees eligible for setoff include: unpaid water, sewer, storm water, recycling bills, fees for city-assessed sidewalk repair or replacement, delinquent fees due for city-mandated sidewalk snow and ice removal, past-due rental payments for hangers at Webster City Airport, and unpaid costs for nuisance abatement, among others.

The measure passed unanimously.

Webster City Fire Chief Chuck Stansfield asked the council to approve a first reading of a change in regulations covering the setting off of fireworks in Webster City to bring the city into compliance with laws recently passed by the state government. These include adding July 3, from 9 a.m. to 10 p.m., and December 31, from 9 a.m. to 12:30 a.m., as days fireworks may legally be used in the city.

Additionally, in Webster City, fireworks may be used on July 5 in years it falls on either a Friday or Saturday, between the hours of 9 a.m. and 11 p.m. It is hoped the measure might result in fewer complaint calls to the Webster City Police Department.

The new fireworks schedule was approved by the council and goes into effect immediately.

The council also unanimously approved supporting HQ Homes in applying for a workforce housing tax credit to support a 33- or 40-unit senior living complex in the Lynx Development area on the city’s southeast side. The complex is described by the developer as a “single-story, zero-entry (i.e. no steps to climb) senior living center” occupying a 96,000-square-foot lot.

The first plat approved in 2018 for the Lynx Development contained plans for an assisted living housing project. The developer of the project is Quirk Investments LLC, headquartered in Ankeny.

Also, Street Supervisor Brandon Bahrenfuss advised the council the budget for hot melt asphalt paving this summer could potentially be increased by approximately $118,000. The extra funds arise from what Bahrenfuss called a “very favorable” bid from Fort Dodge Asphalt to complete this year’s HMA program. The bid, at $724,084, was approximately $118,000 lower than the original engineering estimate.

Council members were presented with two projects, which staff recommended as good candidates for the extra paving funds. Option No. 1 would repave five to six blocks of Water, Walnut and Union streets in central Webster City; Option No. 2 would repave about 750 feet of Industrial Park Road, which is east of Mackinley Kantor Drive.

The council voted in favor of Option No. 1, the residential repaving project.