OTTUMWA — How things flow is critical in sewer work. For the city that includes cash flow.

On Tuesday, Ottumwa City Council unanimously approved a transfer of $500,000 from the Local Option Sales Tax (LOST) fund to the sewer construction fund.

Finance Director Mike Heffernan said the transfer was needed to “provide cash flow” during construction of the South Side Sewer Separation (CSO) Project.

“The CSO project is funded by a combination of reimbursement grants and loans. We need cash in order to pay bills in a timely manner,” Heffernan said. “In addition, certain expenditures on the project aren’t eligible for reimbursement and must be funded from city sources.”

The balance in the LOST Fund was $1,567,792, or $623,484 more than anticipated, according to Heffernan. This was due to revenue being $290,484 higher than budgeted and delays in Wastewater Plant improvements of $333,000.

“The balance is more than adequate to handle this transfer,” Heffernan said.

City Engineer Bob Davis recommended the council adopt the required grant policies pertaining to the Community Block Grant Program.

Davis said the policies regarding the prohibition of the use of excessive force, residential anti-displacement and relocation assistance, and equal opportunity must be adopted by all federal recipients receiving the CDBG Program funds.

Also, the policy on the prohibition of excessive force requires all CDBG recipients to adopt and enforce a policy to prohibit law enforcement agencies, within the recipient’s jurisdiction, from using excessive force against individuals engaged in non-violent civil rights demonstrations.

Council Members Bob Meyers, Tom Shepard, Shannon Addison, Gordon Aistrope, and Gerald Brees unanimously approved the recommendation.

In other business, the council unanimously approved:

• An 18-item consent agenda, which included a resolution of support for the Wapello County Great Places Committee Community Betterment Efforts and authorization for Mayor Dale Uehling to sign a Historical Site Preservation Grant application for a project to make improvements to Ottumwa City Hall’s stone steps at the Fourth Street entrance.

• Plans, specifications, form of contract and estimated cost ($210,551.60) for HMA resurfacing on Elm Street (Morrell Drive to Pennsylvania Avenue).

• Plans specifications, form of contract and estimated costs ($477,810) for the Building No. 39 demolition project at Ottumwa Industrial Airport.

• Awarding the contract for Park Avenue Improvements 2006 to Norris Asphalt Paving Co. of Ottumwa, the low (and only) bidder, for $203,221.70. Davis said the original budgeted amount for the project was $166,000.