MOUNT UNION, Iowa (AP) — The small southeast Iowa city of Mount Union is considering dissolving as it deals with sewer system debt.
The Hawk Eye reports the City Council took no action at its Tuesday hearing on a proposal to dissolve the city if it were forced to pay a debt owed to Regional Utility Service Systems in a lump sum.
Matt Rasmussen with the City Development Board says “unincorporation”, or “discontinuance,” does not get rid of debt, but the county could agree to take the territory and levy a special assessment against property owners to pay it off.
Officials say about 15 users of the sewer system are in arrears and a debt of about $40,000 has accumulated. The company filed a garnishment action for about $27,000 and a district judge ruled that about $21,000 could be city seized from the city’s general fund.
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