It took the Iola City Council all of 10 minutes to wrap up their business for 2021 — and with it, the terms of three Council members and Mayor Jon Wells.
Monday’s meeting — the final one of the year — included year-end budget transfers from the electric reserve fund to the electric department and stores funds and an addendum to Iola’s MuniGas contract for natural gas.
Budget transfers
In order to balance the city’s books at year’s end, Council members authorized an increase in budget authority from $9.8 million to $13.4 million into the electric fund.
The larger expenditure reflects higher-than-expected electricity costs (and sales) during an extended stretch of bitterly cold weather in February. A transfer from the electric department reserves to the Stores Department, from $382,532 to $419,882, is necessary to cover price increases for materials the department purchased this year.
The transfers were approved, 7-0, with Councilman Nickolas Kinder absent.
Natural gas contract
Council members approved an addendum to Iola’s natural gas supply contract with Constellation NewEnergy-Gas Division and BP Energy Company as part of its participation through the MuniGas Program.
The MuniGas Program includes 80 communities across 20 states.
Iola’s participation guarantees the city a discount in its gas prices.
The addendum protects MuniGas’s credit exposure when volatile natural gas prices occur, such as what happened last February, City Administrator Matt Rehder explained.
Opioid settlement
The Council also approved a resolution supporting the Kansas Fights Addiction Act enacted this year by the Kansas Legislature. The resolution allows communities such as Iola to be eligible for any of a settlement that may become eligible between the Kansas Attorney Generals’ office and opioid manufacturers.
Rehder said he was uncertain if Iola would receive any money.
“If we’re going to get any money, we have to take this step, and pass the resolution,” Rehder said.
WELLS, who did not run for re-election, will step down officially in January. He’ll be replaced as mayor by Councilman Steve French.
“It’s been an honor to serve,” Wells said. “Thank you for putting up with me.”
Wells was a City Council member for four years prior to his four years as mayor.
