12/10/2019 MinutesCITY OF GRAND ISLAND, NEBRASKA
MINUTES OF CITY COUNCIL STUDY SESSION
December 10, 2019
Pursuant to due call and notice thereof, a Study Session of the City Council of the City of Grand
Island, Nebraska was conducted in the Council Chambers of City Hall, 100 East First Street, on
December 10, 2019. Notice of the meeting was given in the Grand Island Independent on
December 4, 2019.
Mayor Roger G. Steele called the meeting to order at 7:00 p.m. The following Councilmembers
were present: Mike Paulick, Justin Scott, Mark Stelk, Jason Conley, Vaughn Minton, Julie
Hehnke, Clay Schutz, Mitch Nickerson, and Chuck Haase. Councilmember Jeremy Jones was
absent. The following City Officials were present: City Administrator Jerry Janulewicz, City
Clerk RaNae Edwards, Finance Director Patrick Brown, Interim City Attorney Stacy Nonhof,
and Public Works Directar John Collins.
PLEDGE OF ALLEGIANCE was said:
SPECIAL ITEMS:
Wastewater Rate Studv and Construction Update. Public Works Director John Collins reviewed
the Wastewater Rate Study.
The Wastewater Division was an Enterprise Fund with no property tax dollars used to support
the division. They relied on revenues collected from community residents, businesses, and
industries to fund all operations and capital improvements. An updated rate study was
undertaken to ensure sufficient funding for planned projects, which also indicated increased rates
were needed now to meet our bond covenant.
Finance Director Patrick Brown presented the financials with regards to rates. He stated the
utility currently had a strong cash balance but insufficient annual revenues to meet key financial
metrics.
The following potential impacts were presented:
• The City would not be able to issue future debt due to low coverage and no revenue
increase in place
• The cash balance would be depleted by FY 2023 to fund the capital program
• Future �evenue increase would be larger if revenue increase was delayed
Blaine Spady, Bond Council representing Municipal Capital Advisory, La Vista, Nebraska
answered questions regarding current bonds. Discussion was held concerning raising rates now
instead of later. Staff recommended using the proposed cash financing option.
Public Works Director John Collins stated at the end of 2018 a capacity issue with the South
Interceptor was identified. At the February 16, 2019 Council Retreat they estimated costs to be
Page 2, City Council Study Session, December 10, 2019
between $60 million and $120 million, and an urgency of a few years (3 to 5). Recognizing the
impact such a high cost would have on the community, they delayed all projects and
maintenance activities to save money for the project and for any emergency repairs required
during this time. Discussion was held regarding the South Interceptor.
Mayor Steele thanked Mr. Collins and Mr. Brown for the work they did to put this presentation
together. Also thanked were Wastewater Treatment Plant Engineer Jon Menough and
Wastewater Treatment Operations Engineer pong Chon.
ADJOURNMENT: The meeting was adjourned at 7:36 p.m.
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RaNae Edwards
City Clerk