City Council closes out 2025
December 31, 2025
The Colby City Council closed out the 2025 calendar year with a special year-end meeting held at 7:30 a.m. on December 31, addressing several administrative, infrastructure, and financial items before adjourning for the new year.
Council members first approved an amended agenda before moving into the consent agenda. During that portion of the meeting, Mayor Lee Leiker raised a question regarding the rollover of encumbrances from 2024 and prior years. Debra Zerr explained that those encumbrances remain tied to ongoing or delayed projects and that auditors allow them to carry forward as long as the projects are still active. With that clarification, the consent agenda was approved.
Under old business, the council revisited discussion surrounding the $33,100 payment for a 10-year extended warranty on CAT Engine No. 9. City staff explained that the extended warranty begins on the date of delivery, which occurred in April 2024, rather than the date of council approval. That structure means the warranty coverage runs for ten years from delivery. Mayor Leiker asked whether the warranty could be extended again after the initial term expires, and Brad Davis noted that while extensions are possible, costs typically increase the longer equipment is in service.
Council President Stan Schmidt also asked about warranty coverage for the city’s first CAT engine. Davis responded that due to the age of that engine, the cost of purchasing an extended warranty was not considered cost-effective. No formal action was taken on the item, as the payment had already been approved at a previous meeting and the discussion was intended for clarification purposes only.
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In new business, council members approved a resolution designating the Colby Event Center as the new location for all regular City Council meetings. The move was approved without opposition and will take effect beginning with meetings in January. The change formalizes the use of the Event Center as the council’s primary meeting space.
Council members also approved a request for payment in the amount of $109,145.15 for Application No. 1 from Midlands Contracting. The payment covers materials for the city’s ongoing waterline improvement project. City officials noted that the materials have been verified and are on site, which is required before payment for stored materials can be authorized. Additional payment requests are expected as the project progresses.
One of the most significant items of the meeting was approval of Resolution No. 1242, authorizing the redemption of Colby Medical Center’s industrial revenue bonds. Citizen Health CEO David McCorkle provided an update on the hospital project, noting that staff have begun moving into the new facility and that construction has been completed sooner than originally projected. With occupancy underway, the focus has shifted to finalizing long-term financing.
Bond counsel Sarah Steele explained how the bond documents function and outlined the process required to unwind the bonds. Under the terms of the agreement, the bonds can be redeemed on February 2, following the required public notice period. Council members were told that the action allows the hospital to reduce the amount of interest paid as the project transitions to permanent financing. City Manager Ron Alexander noted that interest costs associated with the bonds are approximately $16,000 per day, making early redemption financially advantageous.
Following brief reports and discussion, council members noted that January 1 would be observed as a city holiday. The meeting adjourned shortly thereafter, bringing Colby’s City Council business for 2025 to a close and setting the stage for the start of the new year.