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JUDICIAL CONFIRMATION HEARING 10-19-11 LMS

City Attorney Fred Snook informed the October 19 meeting of the Salmon City Council that a Judicial Confirmation hearing on a proposed loan agreement between the city and the Department of Environmental Quality will take place at 10AM Thursday, November 17, in the Lemhi County Courthouse courtroom.

He said all the paperwork required for Judicial Confirmation was filed on behalf of the city October 5th by Attorney Dale Storer of Idaho Falls.

Last March the council voted to ask for judicial confirmation of the just over $3 million, zero percent loan the city is negotiating with the Department of Environmental Quality. The money will be used for mandated upgrades to the city’s wastewater treatment system.

Snook said the hearing is for the purpose of having the court determine the agreement is authorized by the laws and constitution of the state and that the financial obligation incurred by the city qualifies as an ordinary and necessary expense of the city. It also determines if the proposed loan agreement is legal, valid and a binding obligation of the city. Last June then City Attorney John McKinney said since the city is being mandated to meet federal sewer treatment standards the issue comes under the definition of a regular, city business expense.

Snook quoted state law as saying, “Any taxpayer/property owner, elector or sewer rate payer of Salmon or any person having or claiming any right, title or interest in property or funds affected by the agreement or any other person who has legal right to object may appear and either move to dismiss or answer the petition at any time before the hearing.” He said that is normal procedure. He invited council members and City Administrator George Ambrose to attend the hearing which he estimates should take less that half an hour.
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