Dear Editor,
I continue to follow the council meetings by person, by news report, and the City’s web page. And, after reading the news account following last week’s council meeting, I wanted to make certain that citizens understand the strength and stability of the City of Iola.
In just over five years the City established a pay plan, finalized the Neighborhood Revitalization Program, brought closure to the new water treatment plant issues, worked through power purchase agreements along with securing an energy consultant who assisted on “key” customer accounts, completed the process of qualifying for three $400,000 Community Development Block Grants — the library, the wastewater system and housing revitalization, secured over $800,000 in federal money for the wastewater improvements and educational programs for the library, received a $1 million grant for the Cottonwood Street improvements, developed new athletic fields, and finalized the process for Industrial Revenue Bonds for local businesses. This all in addition to the regular business of running a full service city which includes parks, recreation, fire, ambulance, police, cemeteries, streets, alleys, administration, codes enforcement and all that entails providing all utilities, including a full range of trash pickup services for residents.
In addition to these “planned” improvements, a little thing called the Flood of 2007 hit and most of the City’s energy then became focused on recovery efforts for the community. When the floodwaters receded, the City then received nearly $4 million in matching grant funds from FEMA for a new swimming pool, community building, and skateboard park, plus renovations to the historic recreation building, wastewater facilities, Riverside Park levee, and the other 30-plus projects that were completed. The City also received an additional multi-million dollar grant from FEMA for a voluntary buyout of flooded properties for residents. As a result of losing over 100 homes in the flood plain, the City also was able to develop its first housing development, and the first within the city in decades. The City secured over $1.2 million from the State of Kansas to install infrastructure within the housing tract and attracted two developers who have already constructed 30 new single-family residences and 24 senior housing units, in addition to two homes built by the school district and one private individual. The 30 homes were so successful, that Iola was featured in the Kansas Housing Resource Annual Report and it appears there will be additional housing proposed to complete this 66-lot development.
Iola has a well-trained, well-educated, and dedicated group of employees, who are willing to do whatever it takes to keep the City running like a well-oiled machine. These employees will still be there when most of the council are no longer serving in their current capacity. These folks deserve respect and appreciation for what they do every single day to make the City a better place to live and work. The COLA, (cost of living adjustment) which is tied to the Social Security Index, is part of their pay plan that has been approved by previous Commissions. These employees have endured two years of no COLA increase, just like Social Security recipients, and deserve the same consideration that is granted to them via the Personnel Policy Manual. I ask that the council not take it away from them just because this year happens to be an increase.
The City is in sound financial condition. The City’s audited financial report from 2010 shows a cash balance of nearly $5 million, in addition to an inventory of natural gas in storage with a value of over $350,000, and FEMA accounts receivable of over $300,000 and outstanding wastewater grants of over $750,000. The City is also well situated with multi-millions of dollars in assets, including buildings, infrastructure, generation, equipment, and inventory. One hundred years worth of water and wastewater treatment facilities have been updated, with some debt incurred. The City is prepared to face the future. Considering the major improvements (investments) over the past five years, the fund balances have remained relatively stable. All this without any substantial increases to either utility rates nor property taxes for years. It has always been the desire of Commissions throughout the years to not raise either, despite cuts from the federal and state governments, and the increases in costs for utility operations. Although this philosophy apparently plays well with taxpayers and utility customers, it does result in heavier reliance on utility reserves and decreases in fund balances. The water fund has suffered for years without sufficient funding and yet the Commission, and apparently this council, have stood strong on not increasing rates for customers to the point of transferring funds from other utilities to offset the deficit. So taxpayers and utility customers have benefited, but perhaps at the cost of a top rating for issuing bond debt. The City’s situation, with heavy reliance on utility transfers and only two manufacturing entities responsible for the majority of the utility revenue, puts the City at risk in the eyes of those who rate organizations for the bond market. I’m uncertain what the impact of an increased interest rate might be if the City is to go to the market, but surely a small sacrifice for the years of no increases to either taxes nor utility rates.
The financial statements are a matter of public record, completed by third-party well-respected CPA firms, open for all to see, and presented at open public meetings each year. These financials, including the audit, are required by all governmental entities and is an intense scrutiny of all things financial, including review of all council minutes, contracts, payroll, court records, accounts payable, utility billing and collections, and insurance coverage. In addition, any projects that include substantial grant funds are audited separately. All bank records are audited to the City’s financial records and inventory is accounted for. In addition to the financial accounting, the current auditing firm reviews all City checks and balances, and accounting processes and makes recommendations accordingly. As 2011 draws to a close, the City’s cash balance is at nearly $5.5 million, again, not including the value of natural gas in reserve.
My tenure at the City of Iola is one that I am personally proud of and my accomplishments were many, along with the approval and support of prior City Commissions and staff. It was my pleasure and honor to serve the City of Iola for 32 years. I felt so optimistic about this council during the election because I heard such positive comments about the future and their support of building a great community for people to live and businesses to thrive. I respectfully ask the council to support the employees, and the City Administrator, and make the most of the time that they have left in office.
Judy Brigham,
former Iola administrator
