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HomeMy WebLinkAbout07 01 2015 CM Study Session2 Sri CITY OF CHUBBUCK COUNCIL STUDY SESSION AGENDA JULY 1, 2015 — 4:00pM CALL TO ORDER by Mayor at 4pm GENERAL BUSINESS: 1. Discussion on the disposition of City property in Griffin Hollow Rodney presented the plat of Griffin Hollow and identified the lots in question. City staff does not think the lots are usable. This happens at times, because of the current ordinance. City staff is currently reviewing the ordinance for appropriate changes. The process to dispose of the land was explained and will include the Council in the future. This discussion was intended to see if staff should pursue the process of disposal of this land. 2. Discussion on the Storm Water Management Ordinance The City of Chubbuck is listed with the City of Pocatello as a co -permittee with the EPA on storm water . This new storm water ordinance has been prepared in accordance with our permit with the EPA. Steve does not think this is a huge change from what we are doing and explained the differences in the current ordinance and the proposed ordinance. 3. Update on the DEQ Water Loan The Council has discussed several options in the past for the funding of water improvements. The total cost of phase 2 of the water improvement project is approximately 11 million dollars. Currently the City is looking at using reserves for half the total and a DEQ loan for the other half. During a previous meeting, the Council asked about looking at a DEQ loan for the entire amount, lowering the debts interest rate and pursuing debt forgiveness with the DEQ. Jim from Keller Engineering presented the proposed 5.5 million dollar loan over 20 years at 2.75% and the newly proposed 11 million dollar loan over 30 years at 1.5%. With the second proposal the annual payment would increase about $100,000 per year. Jim estimates the debt forgiveness would be minimal because of Chubbuck's median income, however there could be a chance for some. It is confirmed that there is no prepayment penalty. Rodney would suggest that the Council seriously consider the 11 million dollar loan over 30 years and at 1.5 %. We can supplement, over 20 years the payments with our current reserves with no penalty. Councilmember Lewis ask about the possibility of rate increases. The rate with the DEQ is locked in for the life of the loan. 4. Presentation on the Cost of Water. This presentation was given in a Public Works staff meeting. This presentation shows the comparison of the cost of water per ounce at a convenience store, and outlet/department store and from the City. The City water was by, 1,000 times, less expensive than any other alternative. 2�1 5. Discussion on the FY 16 Budget Rich presented the historical figures on actual revenues and expenditures in the General fund. The fund balance was discussed, the target figures for a healthy fund balance were calculated and the ideas for using some of the fund balance for capital expenditures. The historical numbers for permits and levies were presented. Shared revenue projections were discussed, Rich prepared an L2 based on estimates and showed the Council the numbers generated from that L2 from a zero increase to the maximum increase of 3%. Ideas for handling the Council's decision to withdraw the City from participating in the IIIA were discussed and ideas for handling the increasing funding requests from entities outside the City were discussed. The meeting was adjourned at 5:42 pm.