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HomeMy Public PortalAboutMinutes_CCMeeting_05202008CITY COUNCIL MEETING MAY 20, 2008 6:30 P.M. AT THE COMMUNITY CENTER PRESENT: Mayor Brad Andersen, Council Members Dennis McArthur, Steve Elliott, Dan Gubler, Treasurer Ron Nelson, Public Works Supervisor Zech Prouse, Clerk Betty McKinlay, Clerk Robyn Keyes. ABSENT: Council Member Jane Shaw (contacted via conference call during public hearing) VISITORS: Adrain Beazer, Sally Price, Lynn Morgan, Dave Huntsman, Angie Huntsman, Craig Rockwood, Barbara Schreier, Michael Schreier, Linda Johnson, Gordon Johnson, Tom Aicher, David Morrow, Blake Morrow, Jeff Freiberg, Mark Taylor, Ruby Taylor, Steve Elg. Mayor Andersen brought the meeting to order. Council member Dan Gubler led the pledge. The Consent Agenda and financial report were reviewed. Ron pointed out maintenance accounts and where money can be used for capital improvements. The Mayor noted that expenses for the multipurpose room should be taken out of the library fund. Council Member Dan Gubler made motion to approve the Consent Agenda. Council Member Dennis McArthur Seconded. All were in favor. The Mayor thanked Zech for his help in bringing delinquent water bills up to date. The Mayor discussed the possibility of combining the newsletter with the monthly water bill and outsourcing the mailing. The Mayor feels this is a good way to keep the public informed and updated on City news and activities. The company is willing to let the City have a trial period to see if it will be beneficial for the City. The cost will be approximately $285.00 per month. Council Member Dan Gubler states there will be an overall savings each month when all factors are calculated. Ron Nelson asked how this was going to be tied back to the monthly financial report. He stated that the way it was done now the computer program sent the water revenue statement to him. Council member Dan Gubler explained that we would use our existing water program and transfer the monthly information to a disk, that disk would then be sent to this company to be turned into a billing statement and newsletter and they would mail it to the customer. Mayor stated this trial would start in June, possibly July. The Mayor asked for approval. Council member Dennis McArthur said he thought it was a good idea, Council member Steve Elliott said he thought it was a good idea, and the Mayor entertained a motion to approve; Council member Dan Gubler made a motion to pursue the outsourcing of the billing for the water. Council member Steve Elliott seconded. The Mayor asked if there were any further discussions. There was not, and the Mayor asked for a vote. All were in favor. Mayor Andersen announced the motion carried. 1 Mayor Andersen said he had looked into the research former Council member Scott Long had done regarding improvements to the tennis courts. He found the cost of the upgrade would total $14,000. Not all work from the bid was guaranteed. Mayor Andersen stated that he, along with some scouts, did some improvements last year to help with repairs. Mayor Andersen suggested that the cost of repairs be put on next year's budget and possibly replace the entire tennis court. Mayor Andersen asked Council member Steve Elliott to see about getting a utility pole for another light in the square. Steve asked how long the pole needed to be, Mayor answered 20 feet. Wheeler Electric would install the light as soon as the pole was ready. Council member Dan Gubler reported on bids he had gathered to replace the chain link fencing around the baseball diamond. Dan stated that only two companies returned bids. The best bid included replacing existing chain link with taller and better grade chain link for $3,800. The Mayor commented on how much use the ball diamond received and the importance of maintaining and upgrading. Mayor Andersen mentioned how much work Dane Nelson and Zech Prouse had done already. Council member Steve Elliott asked if there was money in the budget for the chain link and the Mayor stated that, yes, money had been allocated for capital improvements such as recreation, bathrooms and the park. The Mayor stated that perhaps next year's budget should have money in the recreation fund for such issues. Mayor Andersen entertained a motion to approve the chain link at the ball field. Ron Nelson expressed concern that there wouldn't be time to finish project before June t-ball starts. Mayor Andersen said that the company doing the work said they could get it done without interruption of play. Council member Dennis McArthur made a motion to improve the ball field chain link fencing. Council member Dennis McArthur talked about moving the bleachers from the tennis courts to the ball diamond and pouring concrete under them. Council member McArthur stated that he had talked to Tom Hilleshiem to get a crew together to do the work. PUBLIC HEARING VARIANCE FOR STEVE ELG 7:00 P.M. Mayor Andersen explained the procedure of a public hearing. The Mayor stated that first Steve Elg would present his request for a variance, and then the public will have an opportunity to respond. Lastly, Steve may rebut if necessary. Then the Council will vote to either approve or deny the request. Mayor asked if the public had any questions; no one did, so he turned the floor over to Steve Elg. Steve Elg told the public the location of his property and explained that it is a corner lot. Steve wants to build a 20 foot -wide garage which would require a side set back variance. Steve is asking the City to grant him a 3 foot variance so his set back on the side of the garage will be 7 feet from property line as opposed to regulatory 10 feet. Steve explained that this is a side set back from an alley. Ron Nelson asked if this garage will be attached to the house, and Steve said it would. 2 Mayor Andersen then asked if anyone was opposed, and no one was. The Mayor then asked if anyone was neutral. Council member Steve Elliott said he thought it would be a great addition to the neighborhood. Mayor Andersen asked if anyone was in favor of the request, and an audience member asked if Steve Elg had any neighbors around. Mr. Elg said he did, and he had contacted all neighbors 300 feet from his property. No one was against the variance. Mayor Andersen asked if there were any other questions. Council member Dennis McArthur asked if this had gone to planning and zoning, Mayor Andersen said it had and Planning and Zoning approved the request. The Mayor asked again if there were any more questions. There were none, so he closed the public hearing at 7:10 P.M. and entertained a motion from the Council. Council member Dan Gubler stated he was at the Planning and Zoning meeting for another issue and was present during the public hearing for Steve Elg's request. Therefore, he needed to abstain himself from this vote. Mayor acknowledged Dan Gubler and continued to entertain a motion from the Council. Council member Dennis McArthur moved to approve the 3 foot variance request from Steve Elg, and Council member Steve Elliott seconded the motion. Ron Nelson noted that if Council member Gubler can't vote and Council member Jane Shaw was absent then there weren't enough Council members to vote. Mayor Andersen made a conference call to Council member Jane Shaw and put her on the speaker phone. Mayor explained what had taken place and went over the contents of the public hearing. Mayor Andersen then asked Council member Shaw if she had any comments, she said she did not and approved of the variance. Mayor Andersen asked for a roll call. Roll call as follows: Aye: Council member Dennis McArthur Council member Steve Elliott Council member Jane Shaw Nay: None Abstain: Council member Dan Gubler Motion carried. Mayor Andersen then explained to Council member Shaw that he would end this conference call, and call her back at 7:30 when the next public hearing begins. Council member Shaw said that would be fine. Mayor Andersen decided to go over Iona Days with the Council while waiting for the next public hearing to begin. Council member Jane Shaw is overseeing the Dutch oven dinner on Friday, July 25th. Council member Shaw has secured Dick Gardner to provide the dinner for $8.00 per plate. Mayor asked Council member McArthur when he needed the information about the dinner for the fliers being sent out. Council Member McArthur replied the first week in June. Council member Elliott asked how many people the City was expecting. Mayor Andersen stated there was 162-172 last year and 235 the year before so the City is planning on 200 people. The Iona Library purchased left over food from the spring clean-up day. Betty McKinlay is overseeing Thursday's dinner which 3 will be honoring those in charge of the celebration throughout the years. Ron Nelson suggested making the History Books available. Council member Dennis McArthur is overseeing the entertainment on Saturday. Council member Steve Elliott is overseeing the entertainment for Friday. Mayor Andersen then talked about the Lion's club helping with set up and clean up. Mayor Andersen asked Council member Dan Gubler to get with the Lion's Club to oversee that project. Mayor then said he was taking care of the fun run on Saturday and providing old time games for the public to enjoy. Mayor Andersen stated that he and Council member Dan Gubler had met with the code enforcement officer and she suggested the City conduct a fundraiser to help put siding on the house east of 6-12. The Mayor and Council member Gubler were in favor of the idea. Council Member Gubler said he would look in to the cost of the project. Mayor Andersen asked the Council to bring items to be added to next year's budget on the next City Council meeting. Mayor suggested items to discuss would be hiring a full or part time police officer, repairs to the restrooms and tennis court, and installation of a new park. Council member Steve Elliott asked what the Mayor had in mind to replace Betty McKinlay. Mayor Andersen replied that the City had hired Robyn Keyes and was looking into a back up for time Robyn might take off. Mayor Andersen announced that a new church will be built on Iona Rd. and it is being put out for bid to contractors. The Mayor also announced to Council that a conference in June will be available and any Council member interested in going need to let Betty know so she can register them. PUBLIC HEARING —WATER RATE INCREASE 7:30 P.M. Mayor Andersen explained the protocol for a public hearing for those in attendance. The Mayor also contacted Council member Jane Shaw and set up the speaker phone for a conference call. Mayor Andersen explained to the public that the City Council members, along with the engineering firm involved, all approved of the water rate increase. The Mayor went over the details of last month's public hearing concerning water rate increase and the reasons for the increase as found through the water study. Water study results were posted on a large board for all to see. Mayor Andersen stated that he would address the questions from last meeting in detail and give the Council's proposal. Mayor Andersen stated the water bond would be in the future and when the Council had all the information needed for the bond it would be presented to the public. The Mayor thanked all those in attendance for their involvement and input on the matter. Mayor Andersen read an article from Idaho Rural Water and mentioned the economy and how the cost of things is on the rise. He talked about the importance of fixing the leak in the water tank and how much water we lose per day. The Mayor stated that the last time the water rate was increased was in 2002, and from 1993 to 2006 nothing besides routine maintenance had been done. Mayor Andersen mentioned that Ross Johnson retired in 2002 and only worked part time until 2006 which meant that Ross was only available for routine maintenance and was not able to take proactive measures to fix the system. 4 Mayor explained if we kept up with inflation our monthly water rate would be as high as $26.80 per month. Because of our monthly expenses we are spending more than our current $20.00 per month. Mayor Andersen addressed Clip Holverson's comment last month that the Mayor didn't have a problem with the water rate being raised. The Mayor explained that he, (the Mayor) had no problem paying his fair share due to the fact that he had a large lot to water, and then explained that the higher water rate was a projection if all recommendations of the water study were completed. Mayor Andersen addressed the issue from last meeting when he started to compare prices of other everyday items and a few of the audience said they didn't care. The Mayor stated that was part of the problem - some people don't care. We are losing thousands of gallons of water each month, and they don't want to pay for it. Mayor Andersen addressed Clip Holverson's question about raising the water rate 5% each year by showing a chart that broke down each year and what the cost would be. The Mayor gave information on neighboring cities and what the cost would be if we put meters in and clarified to the public that the Council and Water Committee would rather pay a higher flat rate than install meters. Meters would be installed as a last choice or when State, grant, or loans mandated it. Mayor Andersen then explained the water rights for our community and what some of the terminology meant. He also broke down the findings of the water study. Finally, the Mayor showed on a chart the monthly break down of the water fee. The chart showed where each dollar went to cover City expenses. The expenses added up to $23.80 per month and the current water rate is $20.00 per month, leaving the City $3.80 short each month per water bill. Last month's proposal of raising the water rate to $30.00 was addressed. Mayor Andersen explained the reason for the $30.00 was to cover the $23.80 needed each month for expenses and the extra to create some revenue. Because of the state of our economy and raising prices, the City Council is now proposing to raise the water rate to $23.80. It is also proposed to complete the water study so we can get a DEQ loan and possibly a grant for a future water bond. Other proposals include and update telemetry with a SCDA system, bringing well #3 on line with upgrades, installing a VFD on well #1 to maintain pressure and then take care of the water tank off line. With money we have in the budget and our savings, we feel we can complete the items proposed. After these items are completed, then we can take the current tank off-line to assess the repairs needed for the tanks and decide what should be done to the tank. Mayor Andersen asked the community to help make the decisions; they are aware of what needs to be done. The Mayor asked Council member Jane Shaw if she was still online with us and heard everything that has been said. Council member Shaw replied she did. With that said, Mayor Andersen asked the public if anyone was against raising the water rate to $23.80. 5 Former Mayor Craig Rockwood said he wasn't against raising the rate but wanted to know how much money was in the water revenue. Ron Nelson answered that without going to look he thought it was about $150,000 to $200,000. Craig said that he had a problem with the numbers and that he used a copy of the budget to run an analysis that showed it looked like the City put almost $32,000 in the bank last year. Craig commented that the numbers Mayor Andersen used was budgeted money, not actual money spent. Craig felt that the City wasn't actually losing money and gave a copy of his finding to Mayor Andersen. Craig said the City wasn't justified in asking for a water rate increase. Mayor Andersen addressed Craig Rockwood's comments by first producing a letter written by Craig in August 2007, to the City Council in which Craig stated that the current water budget is under budgeted by $29,000 and it is suggested that the money will have to come out of water capital reserve funds. Craig also suggested that the payroll is the main reason for the increase of cost to operate the water fund. In three years payroll has increased 67%.This analysis doesn't include funds spent for capital expenditures. Today capital funds received for hook up fees cover capital expenditures, but this year's proposed capital revenues will not be enough to cover the capital budget. Options: "A. keep proposed budget as is and use up reserves to cover operating costs; B. Raise the water fee by $5.00 to break even; C. Lower proposed expenditure to get closer to break even; D. Lower proposed expenditure and raise monthly water fee". Mayor Andersen pointed out that what he just read came from Craig Rockwood. Craig commented that some of the numbers that were presented by Mayor Andersen weren't right, and Mayor Andersen replied that some of the numbers that Craig presented weren't right. Dan Hunting stood up and disagreed with Craig Rockwood. Dan stated that the City is losing a lot of money through inappropriate and unattended watering. He restated that the City looses a lot of revenue and has seen how much revenue can be generated through the use of meters, which causes people to monitor their water use. The Mayor replied by explaining that 8 water meters have been placed throughout the City to gather data on water usage. Dave Huntsman commented on last month's meeting and said he asked for justification on raising the water rate $10.00. He said that he didn't feel that the water rate needed to go as high as $30.00 and suggested $23.00 or $24.00, because $23.80 would be too confusing. He commented that the Council did a good job at addressing last months questions during this meeting and was pleased that there was an 80% decrease from last month on what the City was asking for. Mayor Andersen asked those in favor of raising the water rate if $23.80 is too high or too low. Angie Huntsman said we should make the water bill either $22.00 or $24.00, and she would like to see conservation and education to the public on water usage. Mayor Andersen agreed and said he would take that into consideration. 6 Craig Rockwood said he felt that raising the rate to $22.00 would be more in line with the bond and then in a year see if the $2.00 increase was adequate. If not, then ask for $2.00 more. Mayor Andersen replied that upon finishing the water study the City would be able to apply for grants, and then they would know just how much money they would need to come up with. The Mayor stated that the water study wouldn't be complete for 6 months to a year and thanked Craig for his suggestion. Lynn Morgan asked about the possibility of using ditch water to water the park. Mayor Andersen responded by saying that the City looked into doing that but with the water rights allocated the City would only be able to water one day a week, and that would not be adequate. Adrian Beazer said that the City mentioned the need to update the telemetry and install VFD but didn't mention the cost. Mayor Andersen answered that to complete the water study would be $25,000 which might make the City eligible for grants and a lower interest rate. The SCDA system would be about $25,000 contracted by a local company and the City has allocated money in the current budget for that. Well #3 would cost about $100,000 that would have to be taken out of reserve money. The VFD estimate was about $25,000. Mayor Andersen added it up for the public and stated that with what was in the budget and using up all reserves the City would still need to raise the rate. Tom Aicher asked about our current bond. Mayor Andersen explained that the current bond will be paid off at the end of this fiscal year, which will put $4.53 per household back to the City. Mayor acknowledged that with that money coming back, perhaps the rate only needed to be raised by a couple of dollars after the water study shows what is needed. Then the City might not be ready this next year for the next bond, so the City is trying to generate revenue to replenish the reserves. Mayor Andersen asked if there were any more questions. There were none, so the Mayor turned time over to the City Council for a rebuttal. Mayor Andersen stated that he had heard from the public's opinion to raise the rate anywhere from $22.00 to $25.00 Barbara Schreier suggested $22.00. The Mayor stated with the economy the way it is and the current bond ending that he has no problem with the rate being $22.00, $23.00 or $24.00. Mayor Andersen asked if there were any more question from public. There were none, so Mayor Andersen turned the time over to the Council. Council member Dennis McArthur commented that if the City took off some of the costs of the original proposal due to high estimations. The cost for repairs would be reduced by 1.5 million dollars. That would still leave a total cost of 1.2 million dollars, and he then reminded the public that our cash reserve is less than $200,000. He also stated that it took several years to create that cash reserve. Council member McArthur adds if we are going to maintain a system that we have confidence in, it is going to take more money than we have put into it and said if we had the money to do the repairs already needed the City wouldn't be at this meeting talking about an increase. He comments that there are fire hydrant issues that need to be addressed. McArthur informs the public that the State 7 Association of Cities stated that for infra -structures like water and sewage the City needs to charge enough to build up a surplus to pay for the next expense. Mayor Andersen thanked Council member McArthur and asked if there were anymore comments. Council member Dan Gubler stated that his concern is future need. Gubler said the system and tank are almost 50 years old. He said we don't have enough money to fix the current needs and we must account for future needs as well. Council member Gubler also said we need to reduce the impact on our system and increase the life of our system, so considering future need is important. He said the rate increase will go toward better meeting our future needs. Council Member Jane Shaw added that the Council has been responsible with the funds that are being requested, and the Council has the City's best interest in mind. Angie Huntsman said she felt like it was the City Council against the citizens. Mayor Andersen answered by saying that wasn't the case and didn't want anyone feeling like that. The Mayor said the issue was negotiating a cost of rate increase, and that the Council is here for the people. Craig Rockwood said that the system was set up for a flat rate fee, no matter how much water was used. He said that money needed to be set aside for a reserve or a bond needed to be passed. Adrian Beazer asked if for a bond to pass didn't there need to be a certain amount of money in a reserve fund. Craig Rockwood answered that is was required to have a certain percentage of the bond amount already in reserve and that perhaps we needed to raise the rate to $24.00 or $25.00 just to meet that requirement. Mayor Andersen said that it seemed a happy medium would be $23.00. That would put adequate funding in reserves and we would cross the bond bridge after we get the water study back. The Mayor proposed to the Council a $23.00 water rate. Dave Huntsman says he is concerned that some of the fire hydrants aren't working, Mayor Andersen said that was a misunderstanding; some of the hydrants need system upgrade due to low pressure. Public Works Supervisor Zech Prouse said that all of the fire hydrants are in working order; some are just more difficult to operate. Mayor Andersen asked the public what rate they wanted and $23.00 is decided on. Mayor Andersen closes the public hearing at 8:45 p.m. Mayor Andersen entertained a motion from the Council. Council member Dennis McArthur made a motion to raise the water rate to $23.00. Council member Steve Elliott seconded the motion. Mayor Andersen asked if there was further discussion. Craig Rockwood said that the water rate was established by City Ordinance so Craig suggested that the motion should be to have the Mayor and attorney draft an ordinance and have the 8 approval at the next City Council meeting. The ordinance can be passed that night and wave the second and third reading and it wouldn't become effective until it is printed in the news paper. Mayor Andersen explained that they were there tonight to decide on a rate and that the attorney would draft the ordinance once the rate was approved. Council member Dennis McArthur asked to rephrase his motion. Council member Dennis McArthur made a motion to propose that the City of Iona moves to raise its water rate to $23.00 a month with the necessary adjustments to our ordinance that our attorney dictates. Mayor Andersen asks if there is a second. Council member Steve Elliott seconded. Mayor asked if there were any more questions, there were none. Roll call as follows: Aye: Council member Dennis McArthur Council member Steve Elliott Council member Dan Gubler Council member Jane Shaw Nay: None Motion carried. Mayor Andersen thanked everyone for attending and reminded them that at next month's Council meeting Betty McKinlay will be recognized for retirement. Mayor Andersen continued with the agenda, and the Mayor stated that the last dance had a low turn out and money was lost. Perhaps a summer dance, Halloween, or New Year's Day would be a better time, or some other date. Ron Nelson asked when new water rate would go into effect. Mayor Andersen stated that as soon as Dale Storer gets the ordinance drafted, hopefully by July. Mayor Andersen discussed the possibility of new play ground equipment - more specifically a place for skateboarders. Mayor asked for the Council's opinion. Council member Gubler said he is not in favor and would rather see existing equipment upgraded and tennis courts fixed first. Council member Steve Elliott agreed that existing equipment needed attention first. Mayor Andersen said that they would revisit the issue next year. Public Works Supervisor Zech Prouse suggested if a skateboard park goes in, perhaps it should go in the Barnes addition. Council member McArthur suggested that if we do put in skateboard equipment, maybe a few small rails or cement steps scattered in different places instead of one big park would be better. Mayor Andersen asked Arian Beazer if he had anything to report about the Planning and Zoning Committee. Adrian said it had already been addressed earlier in the meeting. Council member Gubler stated that Planning and Zoning President Jerry Hansen was stepping down due to health issues. Mayor Andersen said Planning and Zoning member Brian Stutzman is also stepping down. 9 Public Works Supervisor Zech Prouse gave his report. Two of the meters have been installed in the Homer addition and one in Mt. Ridge. And none of the lots have been landscaped. These meters read 280 gallons a day usage. The church is landscaped and using sprinklers, and it is using about 1,830 gallons a day. The City Park is using about 20,000 gallons a night. One landscaped lot well over an acre in size is using 1,200 gallons per day. IBSD is repairing a sewer line on Free Ave. Bonneville County is calling to ask when the road will be fixed in front of Iona School. Zech informed them the City had to wait until school was out due to the fact the water had to be turned off. Zech said after he gets the ditches cleaned out he will start on patching up roads. Clerk Betty McKinlay, no report. Clerk Robyn Keyes, no report. Treasurer Ron Nelson, no report. Council member Dennis McArthur gave his report. He commented that the City and the church had different cleanup days and the dump truck was emptied three times. McArthur commented that the water pump went out on the dump truck and Zech said it was about $450.00 to be fixed. Mayor Andersen said that perhaps a big dumpster should be brought in next time. Council McArthur said he would contact Ton Hilleshiem about pouring concrete for bleachers. Council member Steve Elliott gave his report. The historical committee made $1,200.00 on their fund raiser; he thanked Zech for all his help in cleaning up the property. Elliott said he was pursuing applying for a tax exempt number. Mayor Andersen talked about contacting Ralph Steele about either purchasing his property or giving it back to him. Council member Dan Gubler gave his report. He asked about the pioneer sign at the park that is in decay and suggested we get an eagle scout to refurbish it. Mayor Andersen talked about the possibility of removing the sign. It was decided to refurbish. Council member Gubler reported on the May 15th meeting with the fire district. They talked about the possibility of a having a metro -fire district. It was decided it would be too costly to maintain a new fire station. The cost would have been 2 million dollars annually. Another option is ask the developer of Black Tail to provide land for a sub station. Council member Gubler is in the process of trying to acquire some property on the corner of Iona Rd. and Hitt Rd. to move Fire Station #2. A much larger fire station will be down the road. Council member Gubler said that new repeat towers were installed on the Iona hill and that would effect our police radio when we use it again. Council member Dennis McArthur told Mayor Andersen that he thought the Mayor did a good job with public hearing and McArthur thanked the council for being supportive. 10 Council member Dan Gubler stated that his biggest concern was future growth. Mayor Andersen commented that while Ross Johnson was only working part time from 2002 to 2006 the City got behind on repairs by trying to save money. Mayor Andersen entertained motion to adjourn meeting, Council member Dan Gubler made a motion to adjourn City Council meeting, Council member Steve Elliott seconded. Time: 9:25 11 7,ITY OF IONA *BUDGET REPORT** ' I I I I? 4-30-OB PAGE 3 **** GENERAL FUND **** ESTIMATED * * R E C E I P T E D * * UNRECEIPTED PERCENT 'UND ACCOUNT# ACCOUNT TITLE REVENUE MTD YTD BALANCE RECEIPTED 101 305.000 STATE HIGHWAY USERS 47,000.00 12,223.01 36,915.75 10,084.25 )01 310.000 STATE REVENUE SHARING 42,000.00 10,096.58 33,168.06 8,831.94 )01 315.000 STATE LIQUOR TAX 16,000.00 6,240.00 18,720.00 2,720.00- )01 320.000 BEER & DOG LICENSES 200.00 .00 112.00 88.00 )01 325.000 COURT REVENUE 1,200.00 .00 2,037.03 837.03- )01 330.000 INTEREST 4,500.00 163.44 2,565.23 1,934.77 )01 335.000 CABLE TV FRANCHISE 3,600.00 .00 3,583.89 16.11 )01 340.000 NATURAL GAS FRANCHISE 9,200.00 .00 3,725.73 5,474.27 )01 345.000 POWER FRANCHISE 11,000.00 4,536.65 12,154.77 1,154.77- )01 355.000 BUILDING RENT 5,000.00 525.00 3,915.00 1,085.00 )01 357.000 BUILDING INSPECTION FEES 21,600.00 5,514.00 16,875.00 4,725.00 )01 358.000 GRANTS 11,000.00 .00 2,863.00 8,137.00 )01 360.000 PROPERTY TAX REVENUE 146,000.00 .00 91,375.20 54,624.80 )01 390.000 MISCELLANEOUS REVENUE 5,000.00 15.00 11,175.50 6,175.50- )O1 395.000 RESERVES 10,000.00 .00 .00 10,000.00 78.54 78.97 117.00 56.00 169.75 57.01 99.55 40.50 110.50 78.30 78.13 26.03 62.59 223.51 **TOTAL GENERAL FUND REVENUE 333,300.00 39,313.68 239,186.16 94,113.84 71.76 0441 **** GENERAL FUND **** ESTIMATED * *EXPENDED* * UNEXPENDED PERCENT ACCOUNT# ACCOUNT TITLE EXPENSE MTD YTD BALANCE EXPENDED 001 410.000 PAYROLL 66,000.00 7,437.00 56,131.00 9,869.00 85.05 001 420.000 RETIREMENT 8,000.00 699.35 3,631.52 4,368.48 45.39 001 422.000 HEALTH INSURANCE 25,000.00 1,598.10 10,734.80 14,265.20 42.94 001 424.000 PAYROLL TAXES 9,000.00 530.96 4,304.72 4,695.28 47.83 001 440.000 ELECTRICITY - NATURAL GAS 22,000.00 2,443.04 14,547.56 7,452.44 66.13 001 445.000 OFFICE SUPPLIES 7,500.00 1,077.77 4,896.03 2,603.97 65.28 001 446.000 TRAVEL 6,000.00 307.00 2,417.32 3,582.68 40.29 001 447.000 ADVERTISING 1,500.00 .00 4,062.23 2,562.23- 270.82 001 450.000 INSURANCE LIABILITY 7,000.00 .00 5,782.00 1,218.00 82.60 001 455.000 LEGAL & AUDIT FEES 9,000.00 600.00 7,837.50 1,162.50 87.08 001 460.000 POLICE 37,500.00 .00 15,376.51 22,123.49 41.00 001 465.000 VEHICLE RENT 5,000.00 .00 .00 5,000.00 001 470.000 MAINTENANCE 69,000.00 8,900.87 39,503.74 29,496.26 57.25 001 472.000 BUILDING INSPECTIONS 9,000.00 1,369.00 9,033.00 33.00- 100.37 001 475.000 CIVIL DEFENSE 500.00 .00 .00 500.00 001 480.000 LIBRARY 3,000.00 .00 .00 3,000.00 001 490.000 CAPITAL IMPROVEMENTS 43,300.00 749.50 7,731.50 35,568.50 17.86 001 495.000 MISCELLANEOUS EXPENSE 5,000.00 80.00 4,118.84 881.16 82.38 **TOTAL GENERAL FUND EXPENSES 333,300.00 25,792.59 190,108.27 143,191.73 57.04 **NET EXCESS OR DEFICIENCY(-) 13,521.09 49,077.89 49,077.89- 'ITY OF IONA *BUDGET �4-30-08 R E P O R T* PAGE 4 F **** WATER FUND **** ESTIMATED * R E C E I P T E D* UNRECEIPTED PERCENT JND ACCOUNT# ACCOUNT TITLE REVENUE MTD YTD BALANCE RECEIPTED 02 305.000 COLLECTIONS 140,000.00 11,710.82 81,885.40 58,114.60 02 310.000 HOOK UP FEES 36,000.00 7,200.00 25,200.00 10,800.00 02 315.000 INTEREST 4,000.00 142.21 1,471.85 2,528.15 02 350.000 TANK REPLACEMENT FUND 50,000.00 .00 .00 50,000.00 p2 395.000 RESERVES 40,000.00 .00 .00 40,000.00 i02 397.000 WATER BOND 1,500,000.00 .00 .00 1,500,000.00 58.49 70.00 36.80 **TOTAL WATER FUND REVENUE 1,770,000.00 19,053.03 108,557.25 1,661,442.75 6.13 **** WATER FUND **** ESTIMATED FUND ACCOUNT# ACCOUNT TITLE EXPENSE ** E X P E N D E D** MTD YTD UNEXPENDED PERCENT BALANCE EXPENDED 002 410.000 SALARIES & BENEFITS 30,000.00 .00 .00 30,000.00 002 440.000 ELECTRICITY 28,000.00 1,303.78 11,796.12 16,203.88 42.13 002 445.000 OFFICE, SUPPLIES, LEGAL 7,000.00 629.51 5,104.91 1,895.09 72.93 002 450.000 ENGINEERING COSTS 15,000.00 .00 14,515.00 485.00 96.77 00 .00 .00 002 460.000 VEHICLE EXPENSE 002 465.000 VEHICLE RENT 7,000.00 .00 .00 7,000.00 470.000 REPAIRS & MAINTENANCE 30,000.00 2,106.30 14,898.06 15,101.94 49.66 480.000 BOND PAYMENT 29,928.00 .00 14,730.00 15,198.00 49.22 002 482.000 BOND INTEREST 1,440.00 .00 954.07 485.93 66.25 002 485.000 TANK REPLACEMENT FUND 60,000.00 .00 .00 60,000.00 002 490.000 CAPITAL IMPROVEMENTS 61,632.00 1,260.00 2,160.00 59,472.00 3.50 002 497.000 WATER SYSTEM UPATE 1,500,000.00 .00 .00 1,500,000.00 **TOTAL WATER FUND EXPENSE 1,770,000.00 5,299.59 64,158.16 1,705,841.84 3.62 **NET EXCESS OR DEFICIENCY(-) 13,753.44 44,399.09 44,399.09- ;ITY OF IONA *BUDGET 91-30-08 R E P O R T* PAGE 5 **** EQUIP REPLACEMENT **** ESTIMATED * * R E C E I P T E D * * UNRECEIPTED PERCENT UND ACCOUNT# ACCOUNT TITLE REVENUE MTD YTD BALANCE RECEIPTED 03 305.000 EQUIP RENT --WATER 5,000.00 .00 .00 5,000.00 03 310.000 EQUIP RENT --GENERAL 5,000.00 .00 .00 5,000.00 03 395.000 EQUIP RESERVES --WATER 33,571.00 .00 .00 33,571.00 03 396.000 EQUIP RESERVES --GENERAL 35,071.00 .00 .00 35,071.00 **TOTAL EQUIP REPLACEMENT REVENUE 78,642.00 .00 .00 78,642.00 **** EQUIP REPLACEMENT **** ESTIMATED * *EXPENDED* * UNEXPENDED PERCENT 'UND ACCOUNT# ACCOUNT TITLE EXPENSE MTD YTD BALANCE EXPENDED 103 410.000 EQUIP REPLACEMENT --WATER )03 415.000 EQUIP REPLACEMENT --GENERAL 103 490.000 EQUIPMENT PURCHASE **TOTAL EQUIP REPLACEMENT EXPENSE 38,571.00 40,071.00 .00 .00 38,571.00 .00 .00 40,071.00 .00 .00 .00 78,642.00 .00 .00 78,642.00 **NET EXCESS OR DEFICIENCY(-) .00 .00 .00 i :ITY OF IONA *BUDGET �Q4-30-08 R E P O R T* PAGE 6 RECREATION FUND **** ESTIMATED * * R E C E I P T E D * * UNRECEIPTED PERCENT UND ACCOUNT# ACCOUNT TITLE REVENUE MTD YTD BALANCE RECEIPTED 04 305.000 BASEBALL FEES 10,000.00 .00 .00 10,000.00 04 310.000 SHELTER RENTAL 500.00 .00 65.00 435.00 13.00 04 320.000 WESTERN BOYS FEES 300.00 .00 .00 300.00 04 395.000 RESERVES .00 .00 .00 **TOTAL RECREATION FUND REVENUE 10,800.00 .00 65.00 10,735.00 .60 **** RECREATION FUND **** ESTIMATED * *EXPENDED* * UNEXPENDED PERCENT 'UND ACCOUNT# ACCOUNT TITLE EXPENSE MTD YTD BALANCE EXPENDED )04 410.000 RECREATION EQUIPMENT 1,000.00 .00 .00 1,000.00 )04 415.000 RECREATION LABOR 3,000.00 .00 .00 3,000.00 )04 420.000 BASEBALL SUPPLIES 4,000.00 104.56 104.56 3,895.44 2.61 )04 470.000 RECREATION MAINTENANCE 2,800.00 .00 938.61 1,861.39 33.52 1 **TOTAL RECREATION FUND EXPENSE 10,800.00 **NET EXCESS OR DEFICIENCY(-) 104.56 1,043.17 9,756.83 9.66 104.56- 978.17- 978.17 MONTHLY EXPENSE REPOT 4/30/2008 Amount Date Description ROCKY MTN POWER $ 2,408.75 BRAD ANDERSEN $ 40.00 GIFT CERTIFICATE-TAMMY NELSON ALLTEL $ 112.80 ROYAL NEIGHBORS $ 300.00 6 MONTH POLICY PSI $ 48.09 R & S DIST $ 64.96 CLEANING SUPPLIES ASPHALT MAINTENANCE $ 85.00 COLD MIX ZIP PRINT $ 104.56 BASEBALL BONNEVOLLE COUNTY $ 359.18 SIGNS EAGLE PRESS $ 768.00 ENVELOPES/RECEIPT BOOKS HOLDEN KIDWELL $ 600.00 CITY OF IDAHO FALLS $ 931.75 ANIMAL SHELTER -QUARTERLY BOB MCBRIDE $ 1,369.00 DIAMOND T $ 3,830.00 PAUL BOTERO $ 74.71 MULTI PURPOSE ROOM DAN GUBLER $ 79.50 NEWSLETTER VICKI BURNHAM $ 80.00 TEMP HELP BOB STAHL $ 362.00 CARPET/MULTI PURPOSE ROOM CARPET ONE $ 558.00 CARPET/MULTI PURPOSE ROOM BLUE CROSS $ 27.10 PRO RENTALS $ 72.82 HOME DEPOT $ 223.54 CHASE CARD SVC $ 399.46 TRAVEL/OFFICE SUPPLIES HOLDEN KIDWELL $ 749.50 CODE BOOK REGENCE BLUE SHIELD $ 1,271.00 INTERMOUNTAIN GAS CO $ 1,338.07 ROW EN SWEEPING $ 2,565.00 DIANA NELSON $ 85.00 CLEANING POSTMASTER $ 144.56 NORTHERN ANALYTICAL $ 40.00 WATER TEST SHAUNA HEMSLEY $ 67.50 COMPUTER MAINT CAL STORES $ 77.54 6-12 EZ MART $ 217.86 POLLARD WATER $ 300.01 MICRO SERV $ 72.90 AT&T $ 97.79 WEST $ 246.76 _Q LANDON EXCAVATING $ 435.00 FERGUSON ENTERPRISES $ 1,035.89 DELL BUSINESS CREDIT $ 1,260.00 COMPUTER INTRODUCTION: On behalf of the City of Iona I would like to thank all of those who attended our public meeting last month concerning raising our monthly water rate. We value your opinion and ask you for your input and support. Last month I tried to focus on why we need to increase the monthly water rate by showing you what the water study indicated. Last meeting you asked for more detail on why we need to increase the water bill. So this meeting I will give you the detail you requested and our proposal. The water bond is down the line and we are looking at three or four options. When we have all the information we need for the bond proposal we will present that to you at a meeting like this. The City Council and I would like you to understand that we are trying to do what is best for the future of Iona. Raising water rates affects not just you, but all of us. So please do not shoot the messenger, all I am trying to do is let you know where we are right now and what is needed in the future. HISTORY: 1. Read article from Idaho Rural Water. 2. It seems like the price of everything is going up; from gas to food and now water. I am sure some of you have heard of the saying, "if it isn't broken don't fix it" or out of sight out of mind. Well, that doesn't work with the City's water system. Until last year our water tank was losing over 43,000 gallons of water per day, which adds up to over 10 million gallons for the year. Last year we repaired the tank the best we could without taking it out of service, but we are still losing at least 22,000 gallons of water per day. 3. Monthly water bill was last raised in 2002. 4. From 1993 when well #1 was drilled until 2006, nothing besides routine maintenance has been done on our water system. 5. Ross Johnson retired in 2002. From 2002 to 2006 Ross worked part-time. 6. If we keep up with the cost of inflation at 5% a year our monthly water bill would be as high as $26.80. 7. Because of our monthly expenses we are spending more than are current $20.00 monthly water bill. Thus we are going in the hole. Page 1 QUESTIONS FROM LAST MEETING: Last month I was a little disappointed because most of the questions that were asked from the public were from former city council members that know we need to upgrade our water system. At this time I would like to address those questions: 1. Clip stated that I did not have a problem of the water rate being $55.00 a month. Number 1 that that is taken out of context; (like the scriptures) let me explain. 2. I started to compare how much we spend on bottle water, soda, or coffee everyday and people said we don't care — well that is the problem you do not care. But when we propose of raising water rates for thousand's of gallons of water used each month we don't want to pay for it. 3. Clip questioned me about my math if we raised the water rate 5% each year from 2002 which was the last time we raised the monthly rate. 5% 4% 3% 2002 $20.00 $20.00 $20.00 2003 $21.00 $20.80 $20.60 2004 $22.05 $21.63 $21.22 2005 $23.15 $22.50 $21.86 2006 $24.30 $23.40 $22.52 2007 $25.52 $24.34 $23.20 2008 $26.80 $25.31 $23.90 FOR YOUR INFORMATION: Citv of Ucon: $20.50 for 5,000 gallons of water per month. $0.65 for every 1,000 gallons after that (national average is $2.00/1,000 gal). Iona: Average home uses 45,000 gallons of water per month. Page 2 METERS: $15.00 for 10,000 gallons of water. $1.00 for every 1,000 gallons after 10,000 (national average is $2.00 for 1,000 gallons). Average home in Iona uses 45,000 gallons. Average home would be paying $50.00 dollars per month if you were to continue to use 45,000 gallons per month. But once people know that their home is on a meter water usage is reduced by 1/3. In that case the average home would be using 30,000 gallons of water per month and be paying $35.00 per month. WATER RIGHTS: IONA: 5.77 cfs = 2,590 gallons per minute. We have a pumping capacity of 6.46 cfs. There is no volume limitation in any of the City's rights, so it is possible to argue that the City has the right to pump at the maximum diversion rate of 5.77 cfs 24 hours per day 365 days per year. That would yield over 4,177 acre feet (1,361,075,400 gallons). In order to justify doing so, and to make beneficial use of all the water pumped, the City would need to have storage facilities sufficient to store water pumped when it is not needed so it could be used when it is needed (Ken Foster, 7/27/07). 1 acre foot = 325,900 2002 — 792 acre feet water Iona pumped. 2006 — 909 acre feet x 325,900 = 296,243,100 water pumped by Iona. Cfs = cubic feet/second VFD = Vertical frequency drive We married (diversion) all our wells because we were pumping more water than allowed by our water rights from our main well. Page 3 WATER STUDY 1- Water meters — 500 - $900,000. 2- Well #3 upgrades - $496,000. 3- New well/well house - $740,000. 4- SCADA System - $54,600. 5- Well #2 upgrades - $6,800. 6- Rehabilitation of existing tank - $245,000. 7- New 1 million gallon water tank - $977,000. 8- 2,900 LF of 8" pipeline - $246,000. 9- Fire Hydrant assembly replacements - $36,000. If completed by 2011 TOTAL COST $2,724,900 NOTE: This does not include the cost for purchasing land for a well and/or tank. If we did everything that needed to be completed our monthly water bill would be around $45.00 a month. Page 4 Right now what we are talking about is the ratio of monthly income to expenses. Later on when we come to you for a bond than we can decide what we want to do and how much it will cost. MONTHLY WATER BILL $20.00 SERVICE ANNUAL MONTHLY ELECTRICITY $28,000 $4.24 SALARIES/BENEFITS $30,000 $4.56 OFFICE SUPPLIES $7,000 $1.06 EQ. RENT/REPLACE. $7,000 $1.06 REPAIRS/MAIN. $30,000 $4.56 ENGINEERING $15,000 $2.28 TANK REPLACEMENT $10,000 $1.52 BOND DEBT $29,900 $4.53 TOTAL $156,900 $23.80 EXPENSE -INCOME ($24,900) 550 CUSTOMERS NOTE: The City Council has increased the monthly water bill for the church from $55.00 to $160.00 per month and the school from $140.00 to $600.00 a month. Also, we have increased the water connection fee from $1,500 to $3,000. Page 5 PROPOSAL: Last month we proposed to raise the monthly water rate to $30.00. The reason was to cover our O & M costs ($23.80); plus to generate more revenue that we can put into savings to reduce the amount of a bond. But with the price of everything going up and the state of our economy we are proposing the following: 1. Only raise the monthly water rate to $23.80. This will give us enough revenue to maintain the water system and have enough money encase of an emergency or the unexpected. Note: Required by drinking water regulations (IDAPA 58.01.08). 2. Complete water study, so that we can get DEQ loan and possibility of a grant for a future water bond. 3. Update telemetry with SCDA system. 4. Bring well #3 on-line and upgrade so that we are in compliance. 5. Install a VFD on well #1. By installing a VFD on well #1 we can maintain pressure and water for our customers; then we can take the water tank off-line. Then we will know if we can repair the existing tank or if we need a new one. 6. With the money we have in the budget and savings we feel that we can complete the above items that have already been mentioned. When these items are completed and the tank taken off-line for inspection we will then know exactly what is needed for a bond. Then we can decide together as a community of what the options are and what we want to do. The choice is yours, but we do need to raise the monthly water rate to at a minimum of $23.80. Page 6 NOTICE CITY COUNCIL MEETING WILL BE MAY 20TH, 2008 AT 6:30 P.M. AT THE CITY BUILDING A PUBLIC HEARING FOR A VARIANCE REQUEST WILL BE HELD AT 7:00 AND A PUBLIC HEARING TO RAISE THE WATER RATE WILL BE HELD AT 7:30 P.M. NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that on May 20`h, 2008 at 7:00 p.m. at the Iona Community Center located at 3548 North Main, Iona, Idaho, the Iona City Council will conduct a public hearing to consider a request for a "Variance" by Steve and Stephanie Elg living at 3782 North Main in Iona. The request is for a garage to be built along Longhurst Avenue and he is requesting that the set back be within 7 feet from his property line instead of 10 feet. If you have any questions or comments concerning this matter they will be heard at the public hearing. City of Iona Betty McKinlay City Clerk NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that on May 20th, 2008 at 7:30 p.m. at the Iona Community Center located at 3548 N. Main, Iona, Idaho, the Iona City Council will conduct a public hearing to consider an increase in water rates. All interested persons are invited to attend the hearing to express their views regarding this proposal. Anyone who wishes to comment, but is unable to attend the hearing, may submit written comments five (5) days prior to the meeting to City of Iona City Clerk, P. O. Box 487, Iona, Id. 83427. City Hall and the council chambers are accessible for persons with disabilities. Any person needing special accommodations to participate in the meeting should contact City Clerk Betty McKinlay at 523-5600 at least 24 hours prior to the meeting.