|CITY BUDGET PROPOSED AND AGREEMENT APPROVED|
COUNCIL APPROVES DEQ LOAN AGREEMENT 7-6-11 LMS
At its July 6 meeting the Salmon City Council unanimously approved a resolution to enter into a $3.5 million dollar loan agreement with the Idaho Department of Environmental Quality and to authorize and initiate an official judicial confirmation process to validate the city’s need for the loan and its intended use.
The money will be used to make upgrades to the city’s 60 year old sewage treatment system. The planned renovation will bring the system into compliance with its National Pollutant Discharge Elimination System permit as well as the Clean Water Act, the Solid Waste Disposal Act and other state and federal regulations attached to waste water treatment facilities.
City Administrator George Ambrose received high praise from Mayor Leo Marshall and the council on the agreement terms he negotiated. Council members said the final agreement will result in great savings to city taxpayers.
At the beginning of what has been a long process, a proposed plan called for a $5.5 million loan over a period of 30 years at two percent interest. The DEQ had agreed to ‘forgive’ $471,000 of the total loan amount. After much evaluation and consultation the final agreement is for $3.5 million, which the city determined was the amount needed, and the duration of the loan is 20 years at zero percent interest. The DEQ will forgive the same $471,000 from the total amount. Ambrose said that once judicial confirmation is obtained, construction on the system upgrades will begin. Ambrose said that the DEQ has worked really well with the city throughout the process.
Money to make payments on the loan will come from user fees already in place.
In other financial business the council tentatively approved a proposed budget for 2012 which for the second year in a row is lower than the preceding year and therefore will require no increase in city taxes.
The proposed $3,541,271 in expenditures is $97,709 less than the 2011 budget and $155,898 less than the city’s 2010 budget.
The proposed 2012 budget will be published in the Recorder Herald and a formal public hearing on the budget proposal is set for July 20 at 6:15PM in the Salmon Valley meeting room.
Detailed copies of the city budget are available at City Hall during the office hours of 8AM to 4:45 PM.
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