Vermilion City Council Meeting — 2026-11-02

The Vermilion City Council met on 2026-11-02. No meeting start/end time was recorded in the transcript. The council handled minutes and consent items, a Veterans Day proclamation, a rezoning hearing delayed by a posting error, several fee resolutions, a hangar lease, EV charging fees, a utility ordinance correction, the 2026 budget revision, the 2027 budget first reading, a fire station remodel contract, and city manager reports. Votes were by voice unless noted.

Consent Calendar

• Approved the minutes of the previous meeting and the noon meeting, and approved the consent agenda as written with no items removed.

Public Comments & Testimony

• No public comment was offered during the Ordinance 1577 rezoning hearing.
• Lori Brown, 221 West Cedar, asked about Ordinance 1580 and said that, given upcoming data center and electrical issues, the city should proceed with openness and transparency toward the public.

Discussion Items

• Veterans Day proclamation: The Vermilion Human Relations Commission proclaimed 2026-11-11 as Veterans Day in Vermilion, signed by Chair Aaron Burrow.
• Rezoning at 112 East Cherry Street: Ordinance 1577 would rezone a portion of the Lamplighter property from GB General Business to R3 residential. A clerical error in posting the Planning and Zoning Commission meeting meant the commission did not consider the request or make a recommendation. The council took no action and only received public comment. A new P&Z meeting was set for 2026-11-09 at 5:30 p.m., with council first reading set for 2026-11-16 at 6 p.m.
• Malt beverage markup report: Since the 2015 ordinance, 100% of markup proceeds have been used to pay part of the debt service on the general obligation bond for Apprentice Park improvements. Annual debt service is about $200,000, while the markup generates about $150,000; second penny funds cover the difference. Staff recommended continuing the use in 2027; no vote was required.
• Curbside recycling fees: The program had a 2023 deficit of almost $11,500, a 2024 surplus of about $7,000, a 2025 surplus of almost $18,700, a projected 2026 deficit of about $13,000, and a projected 2027 deficit of almost $10,000. The reserve was projected at $135,029 by 2026-12-31. A 25-cent monthly increase would generate about $7,749/year and cover over half of the 2027 deficit; a 50-cent increase would generate about $15,498/year and cover the full projected deficit plus add to reserve. The council adopted the 50-cent increase for qualifying residents and for commercial collection of recyclables not mandated by ordinance; it was to take effect in January, with the first bill on 2027-02-10.
• Rental registration fees: Staff proposed keeping the $30 per structure annual fee and raising the per-unit fee from $15 to $20. The city had about 921 active registered rental structures and just over 2,900 units. GovWell, added in summer 2025, supports online registration and tracking; staff noted the GovWell annual fee was around $23,000-$28,000 and also handled building permits. The council approved the per-unit increase to $20.
• Hangar lease: The council approved a lease with Dave Hertz for a hangar at the airport, following transfer from Dave Howard. The prior lease expired in 2021. Terms: 30-year total term, initial 10 years plus two 10-year options; 15 cents per square foot; no cap on future rate increases at the end of the first 10 years; annual January payment. Annual rent was $450, compared with the prior $10.
• EV charging fees: The city has a Level 2 station at City Hall, leased through ChargePoint, and a city-owned higher-wattage station north of Casey's on Princeton added in 2022 with grant funding. The council approved raising Level 2 from $1.70 to $2 per hour and Level 3 from $19 to $20 per hour. City Hall lease: 2023-08-16 to 2028-08-15, $2,400/year, $12,000 total. Princeton subscription: 2026-01-11 to 2029-01-11, $3,420/year, $10,260 total. 2025 revenue was $8,878.27; staff described the stations as a public service and noted the fees do not fully cover lease, subscription, and electricity costs.
• Ordinance 1580: This corrected a clerical error from Ordinance 1531, approved in May 2025, where the signed/published version contained tracked changes rather than final language. The ordinance concerns utility customers reselling to third parties without council authorization and metering responsibility. The city attorney recommended redoing the first and second readings to be cautious; the council advanced it to second reading on 2026-11-16.
• 2026 budget revision (Ordinance 1578): The general fund is about $10 million, with about a $67,000 adjustment. Second penny proposed expenditures were down about $480,000. Changes included about $50,000 less for the City Hall roof, delayed equipment purchases, and shifting the Apprentice Park plunge slide refurbishment, pool basin painting, and basketball court project to 2027; Lions Park bathroom and armory window work were completed in 2026. The council advanced it to second reading on 2026-11-16.
• 2027 budget first reading (Ordinance 1579): The budget included a 3% COLA for council members and city staff, steps and adjustments, a slight sales-tax increase based on a five-year average, and slightly higher bed-and-booze revenue. Projects included fire EMS station phase two, equipment purchases, a roughly $350,000 slurry seal with the county, an ambulance purchase with grant funds, Cotton Park parking lot replacement if grant-funded, armory roof work, and water/sewer extensions at Highway 50/Princeton and Highway 50/Stanford. The council advanced it to second reading on 2026-11-16.
• Fire Station 1 remodel: The council approved a contract with Walker Construction for phase one of the Station 1 remodel at Duke and Dakota, the fire/EMS headquarters built in 2001. Phase one includes kitchen remodeling, flooring replacement, and creating a new bedroom from storage. Walker's low quote was $94,785.40, reduced by $5,380 for flooring choice to $89,485; Mart Brothers quoted $98,612.39. Fire/EMS had $150,000 budgeted in second penny funds. Staff said about $60,000 may remain, but kitchen appliances and a range hood extinguishing system still needed purchase; later phases were not covered by this contract.
• Plane Talk subscription: The council approved paying $64 owed to Plane Talk; one member indicated a preference to abstain because it was out of state.
• City manager report: The P&Z Commission was to meet 2026-11-09 at 5:30 p.m. on the Lamplighter rezoning. A council special meeting was set for 2026-11-09 at noon in the Powell Conference Room for annual liquor and wine license renewals. First reading of data-center-related Ordinances 1565-1570 was set for 2026-11-16. Comments on four mausoleums at Bluff Hughes Cemetery nominated for the National Register were due to the city by 5 p.m. on 2026-11-16. City offices were closed 2026-11-11 for Veterans Day; Wednesday curbside recycling customers would resume 2026-11-18. The Clay County Agricultural Fair Association planned to sell 500 raffle tickets at $20 each on 2026-12-01, with three winners and proceeds for fairgrounds upgrades.

Key Outcomes

• Approved the 50-cent curbside recycling fee increase.
• Approved raising the rental registration per-unit fee from $15 to $20 while keeping the $30 per-structure fee.
• Approved the Dave Hertz airport hangar lease at $450/year under a 10-year initial term with two 10-year options.
• Approved EV charging fees of $2/hour for Level 2 and $20/hour for Level 3.
• Advanced Ordinance 1580 to second reading on 2026-11-16.
• Advanced the 2026 budget revision, Ordinance 1578, to second reading on 2026-11-16.
• Advanced the 2027 budget, Ordinance 1579, to second reading on 2026-11-16.
• Approved the Walker Construction contract for $89,485 for phase one of Fire Station 1.
• Approved payment of $64 to Plane Talk.
• Took no action on Ordinance 1577; the rezoning public hearing only received comment, with P&Z set for 2026-11-09 and council first reading for 2026-11-16.