Keokuk raises possibility of rail-rate increases to help pay for bridge rehabilitation

Councilors and staff focused a significant portion of the workshop on the city-owned swing-span rail bridge, its maintenance backlog and funding options.

Staff said the city is close to submitting a competitive rehabilitation grant (CRISI/CRS-type) estimated at roughly $7 million to repair and rehabilitate the swing span. The short-line railroad has offered preliminary matching funds and preliminary engineering support but the city would likely need to contribute a local match of roughly 10–25 percent depending on the grant structure.

Council members emphasized the fairness of moving rates toward cost-neutrality. One councilor urged restoring an earlier practice of annual per-car rate increases ("at least 10% a year" for several years) so the bridge fund no longer subsidizes operations from other city funds. Staff noted that changing the municipal fee schedule or ordinance will be required and that any short-term grant application timeline could influence the sequencing of an ordinance or resolution change.

Councilors also expressed concern the bridge demolition reserve has dwindled from a historical high and that using the bridge fund to subsidize other city services undermines long-term sustainability. Staff said they will continue MOU negotiations with the short-line, develop a grant application and return to council with an ordinance/resolution for a proposed rate schedule when timing allows.

Next steps: staff will advance the MOU and grant application; if grant funding does not materialize, staff said it will recommend ordinance changes to increase per-car fees to move the bridge toward cost-neutrality.