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Gold Hill reports CDBG application and USDA loan-transfer work as audits and meter replacements continue

Gold Hill City Council · October 2, 2024
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Summary

City staff told the council the community-development (CDBG) grant application for water-reservoir/waterline design has been submitted; staff also described ongoing work to secure USDA approval for a loan assumption after an annexation, progress on audits and plans to replace aging meters that are underbilled.

Staff updated the council on several finance and infrastructure items: the city submitted a competitive CDBG application for design work on a new reservoir and waterline; auditors have received the documents needed for the FY22–23 audit and staff are preparing the 23–24 audit; and staff are addressing a USDA loan issue tied to a past annexation.

The city manager said USDA flagged that an annexation transferred the sewer plant and lines to RVSS in a way that left the city’s loan tied to property it no longer owned. USDA required either a formal assumption of the loan by RVSS or repayment. Staff contracted bond counsel and paid $5,000 for a legal opinion that a governmental-to-governmental loan transfer is permissible; bond counsel has submitted transfer paperwork to USDA for approval and RVSS has agreed in principle to assume the loan.

On infrastructure, staff said more than half of treated water may not be billed because many meters are old and not reading correctly; staff plan to pursue Oregon Health Authority funding and small-city allotments to replace meters and recommended adjusting the billing due date to the 20th of the month (the current code makes bills due upon mailing, producing premature delinquency).

Powerhouse cleanup: staff said DEQ is seeking cultural monitoring for testing, adding unbudgeted costs and conditions that affect EPA-eligible cleanup funding; regional partners are seeking ways to cover the monitor costs so testing and ACPA steps can move forward.

Next steps: staff will continue to pursue USDA approval of the loan-transfer paperwork, await the auditor’s acceptance of submitted materials, and bring meter-replacement funding steps and billing-code amendments back to council.