City staff updated the Walnut Grove City Council on sewer-phase financing and other capital projects, reporting that the city has requested an optional 10% contingency and that the state has asked for a copy of the city's audit.

Staff told the council they asked to be approved for a 10% upgrade or contingency for the sewer plan financing but said the city is not obliged to use that full amount. The staff member reported sending the requested audit copy to state reviewers and did not anticipate issues but cautioned the contingency did not represent a finalized expense.

Council members also received an update on Magnolia Springs, which staff said is underway. Staff reported that two additional pipes required for ongoing work would cost $4,100 and that purchase would fall within the project's contingency. The council was told some invoices remain outstanding and staff will allocate year-to-date funds across projects and present a clearer financial picture at a future meeting.

Ending

Staff said they will return with invoices and an updated financial breakdown to identify which fiscal-year funds have been used and to recommend allocations for remaining project work.