Kalona City Council approves annual budget, grant applications

By Cheryl Allen
Posted 3/8/23

The Kalona City Council made quick work of passing several resolutions Monday night, many of which pertain to the city’s annual budget and other financial concerns.

After a public hearing in …

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Kalona City Council approves annual budget, grant applications

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The Kalona City Council made quick work of passing several resolutions Monday night, many of which pertain to the city’s annual budget and other financial concerns.

After a public hearing in which no comments were made, the council approved the 2023-2024 budget, as well as five budget transfers ranging from $100,000 to $250,000.  

The council also approved payments to non-profit groups that are included in the annual budget.  

“Municipalities aren’t really in the donation business,” City Administrator Ryan Schlabaugh said, noting that the non-profits the city works with all need to serve a public purpose, and that “those expenditures go through our budget so that we can monitor for the public’s best interest.”

The non-profits receiving payments from the city are Paws & More, Wellman Senior Dining, Washington County Economic Development Group, Washington County Mini Bus, Kalona Historical Village, and the Kalona Area Chamber of Commerce.

As the council previously discussed, water and sewer rates will need to be increased for the city to keep up with increased expenses.  The council set a public hearing for Monday, March 20 at 7 p.m. for the ordinance amending water and sewer rates.

WCRF funds and grant applications

The city receives municipal grants from the Washington County Riverboat Foundation (WCRF) each year; next week the foundation will approve the city’s intended distribution of these funds.  The city council approved the use of those funds for the Kalona Community Center, Kalona Historical Village, park improvements, Wellman and Richmond fireworks, the teen area at the Kalona Public Library, the student-build housing project, and the innovation library project.  These commitments total up to $233,000.

The city will also apply for competitive grants from the WCRF for two projects this spring: the student-built housing project and the SouthTown trailhead project.  The council approved both grant applications.

For the student-built housing project, which involves building a duplex at 313 and 315 C Avenue, the city will apply for a $50,000 grant.  Schlabaugh said he had consulted the WCRF director about this application as “it’s a little bit unique” in that the city will use the funds to construct a home and then sell it.  However, “those proceeds are going to go back to try to make the program self-sustainable, and they’re going to be reinvested, reinvested, reinvested.”

He also noted that the Iowa Gaming and Racing Commission aims to better serve low to moderate income households, and the duplex the students will build will provide low to moderate income housing, so there is a shared objective.

The city applied for a WCRF grant in Fall 2022 for the SouthTown recreational area, where the city is planning to construct a trailhead among other amenities, however, it did not win a grant at that time.  The city will reapply this spring for $1,450,000 in grant funding for the $3.35 million project.