Daily Reporter Staff

Land transactions, a $1 million loan and a budget amendment are on the agenda when the Spencer City Council meets at 6:30 p.m. Monday in council chambers.

State law requires that cities hold a public hearing to take action on amending the budget and City Manager Bob Fagen has asked for a change Monday night.

"Budgets are for the most part approved 16 to 18 months before the close of the fiscal year," he said in his memo to council members. "Forecasting for items such as fuel is very challenging. As detailed on the notice of public hearing, the increases for expenditures are primarily due to economic development opportunities, unanticipated grant awards, high gas and oil prices, group medical insurance, and damage to traffic control devices."

The council will also consider a spending request from the fire department's reserve funds.

In other action, council members will consider a loan and disbursement agreement not to exceed $1 million. The money will be used to improve the Municipal Sanitary Sewer system and further the city's Community Sewer Initiative project.

Council members may delay action on the plans and specifications for a East 11th Street paving and storm sewer project. The project includes reinforced Portland cement concrete pavement on 11th Street from Grand Avenue to Second Avenue East, reinforced concrete pipe storm sewer, concrete manholes, concrete inlets and appurtenances for the purpose of collecting and conveying storm water runoff.

The project also calls for removal and replacement of street pavements required for storm sewer construction; removal and replacement of sidewalks and driveways required for street pavement and storm sewer construction and miscellaneous pavement patches on Ninth Avenue East and Fairview Avenue between East 11th Street and East 18th Street.

Spencer Hospital has requested that the city include additional work for the hospital, in the project. In order to allow time for the hospital and city staff to evaluate the bid, Fagen wants the council to table the award of the contract until the next council meeting.

City-owned land could be sold to Shine Brothers, pending council approval. The company intends to use the land to construct a building that would house a new process for the wire fluff.

If successful, the process could eliminate approximately 5 percent of the wire fluff waste that is currently going to the city landfill. The project would also add taxable valuation to the city as well as add up to five new employees. The proposed amount for the sale is $30,000.

Carol Keizer will also be on hand for a presentation about the Spencer Owner-Occupied Housing Rehabilitation program. As part of the requirement for the funding for the Housing Rehabilitation Program, a public hearing is required to allow the citizens to learn more about the program as well as how the revenues for the program have been spent.

"This program has been a tremendous asset to the city as it has made possible rehabilitation to homes in the community that would most likely not have happened," Fagen said, in his memo.

Council members also will consider an Iowa Department of Transportation for a Safe Routes to School Study. The agreement calls for funding for the study in the amount of $24,630.