Minutes 01/26/1971 - Laserfiche WebLink

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1 TUESDAY JANUARY 26, 1971 ",..- of the law is that such a loan would have to be repaid in the fiscal year the loan is negotiated, unless it were to be in anticipation of the sale of bonds, and I do not believe such a loan could be negotiated legally before a referendum. Before next Tuesday's meeting we hope to have a statement from the Water Control Board as to whether some variance from these three criteria may be possible. <- For those political subdivisions which can meet the application criteria, the consideration of the applications involves a rather elaborate point system. Sixty of these points are based on existing stream conditions, twenty points on the status of financing and engineering consideration, as well as availability of site, with the remaining twenty points being allotted on ability to pay as evidenced by taxable values and tax rates. While the Consulting Engineers are not yet far enough along on planning to be more than general about cost estimates, we are developing a recommendation, for submission to Council, on a rate structure which assumes a capital investment of $800,000. In setting a rate structure, it is necessary that the City assume that there will be no Federal and/or State grant available. Thus, the sooner the City can enact the necessary rate structure, the bett~r, because money could be accumulated during the planning and construction stages in the hope that this action might reduce the size of the upcoming bond issue, provide a reserve factor in the event bids are higher than estimates, or make a rate reduction possible, if costs were to be less than anticipated. We know of no way to finance these improvements without a rate increase, and, paradoxically, no Federal and/or State funds will be allotted unless local provision has already been made for those monies. In addition, City Manager Noland pointed up the inter-relationship between the foregoing subject and the proposed contract--on which currently there is an impasse--between the City and the County of Henry or the Henry County Public Service Authority for the receiving and treatment of sewage and wastes by the City from Henry County's Villa Heights area. Mr. Noland also presented the following memorandum from staff members of the Water Control Board for consideration by the Board at its January 26th-27th (1971) meeting, serving notice that neither the City of Martinsvi1le nor the Henry County Public Service Authority can expect Federal-State financial assistance or grants toward their immediate and respective sewerage system needs unless and until a cooperative regional plan has been developed by the two agencies, including the Villa Heights matter: