Posted: 6/28/06
Harris mayor explains cityís loans
By Clark Natalie
During the public comment portion of the June 26 city council meeting, Harris mayor Rick Smisson took the opportunity to respond to questions asked at the June 12 meeting.
Lisa Jorgenson had asked if former clerk Kim Hugger had been asked to return to City Hall to assist the contract employees. Smisson stated that it had not happened, either directly or indirectly.
Jorgenson had also asked if the city had legal authority to have a loan at S & C Bank. Smisson responded that the cityís financial advisor discovered about eight weeks ago that the wrong financial instrument had been used. S & C agreed to convert the financial document from a note to a bond, keeping the same interest rate.
Jorgenson questioned the actions taken to rectify the loan issue. The State Auditor told her that the two loans at S & C were illegal. Would the conversion to a bond nullify this status?
Smisson said the loan process happened early in 2005. The process had been begun and the loan rates already been researched. The city did not have a financial advisor at that time, it was still putting together a professional staff. It came to the advisorís attention about two months ago. Smisson said, that it was not a ìbig deal,î but he had the documents changed to comply with prescribed methods.
Councilman Doug Payne asked Smisson about the procedure. Was using the wrong financial instrument not proper or not legal, as Jorgenson had said the State Auditor implied? Smisson said the note was not an authorized instrument as prescribed.
Approval of plans and specifications for the WWTF was tabled to July 10 as the plans and specifications were not completed when the agenda was prepared.
The final documents arrived Monday and were at the meeting. The documents have also been approved by the MPCA. No environmental impact is needed. The system is set to go.
Smisson went over the plans, how the plant will use gravity, moving from the pre-treatment building to the SBR units and finally to the ultra violet disinfecting system.
Using the ultra violet system will eliminate the need for chlorine and other chemicals. Included in the plans and specifications are the sewer improvements and street improvements on Gladstone.
Mike Kriz, city maintenance supervisor informed the council about the tractor the city owns. It requires major improvements to the glass, breaks, clutch and hydraulics.
Kriz said the estimated cost to repair the tractor would be $,9000 and the city would still have a tractor that is over 20 years old. To purchase a new tractor would cost $29,725.
The Council took no action on the issue.
Kriz also responded to questions from the council concerning the chloride that is to be put on the gravel roads. Harris was to be first on the list because of when their order went in. Although Harris has not received any chloride, other cities are having it put down.
Kriz said that those cities prepay for the chloride and have it trucked in instead of being brought in by rail. Trucking is much more expensive. Kriz continues to contact the provider and as far as Kriz knows, no chloride has come in by rail anywhere.
Smisson said that the pre-construction work has begun on the Water Treatment Plant (WTP). A groundbreaking ceremony will be held at School House Park prior at 6:15 p.m. July 10. Smisson asked that the Park Board and Planning Commission be requested to attend.
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