SPECIAL MEETING MINUTES

BOARD OF ALDERMEN OF THE CITY OF CUBA, MISSOURI

MONDAY – JANUARY 24, 2005 – 5:30 P.M. – CUBA CITY HALL COUNCIL ROOM

Mayor Koch called the meeting to order. Aldermen present: Mike Moreland, Ralph Bayless, Faye Howard, Kenny Killeen, and Brad Bouse. Alderman absent: Judy Schroeder. Public Works Director present: Bob Baldwin.

Mayor Koch limits the meeting to one hour. Koch met with Comptroller Farace earlier today about the discussion Mayor Koch had with Attorney Robinson regarding the city’s finances. The attorney relayed to the Mayor that the Resolution passed in the 1980’s regarding the trash services being free of charge is no good. The city can pass this cost along to the residents in the city. Also, the attorney is looking at setting the Electric Department as a private separate entity and establish a board to oversee how the department is run. If this is done, the Electric Department can pay the city a certain amount of money each month, in lieu of balance transfers.

Comptroller Farace reported that there is a shortage in the FY 2006 budget of $240,000 (this is with the added patronage check for Dec. 2005 and the 10% discount on the monthly Sho-me Electric bills). Ms. Farace gave the following recommendations: to decrease the line loss by 2% to save $83,000; to a Water payment in lieu of taxes to the General Fund of $43,000; a Natural Gas payment to the General Fund of $63,000 (this will require removing the $1.21 cap <but keeping the same price and structure> that the city has….Farace stated the city needs 35 cents over cost to make a profit); by taking away the Animal Control overtime which is approximately $10,000 annually and hiring a part-time person for weekends would save the city $7,000 (there was discussion on restructuring the Animal Control’s time to allot 40 hour per week total; however some did not agree on having a person have to work 7 days/wk); reduce the street construction budget by $10,000; and bill the electric used to the profit enterprises at cost (Tourism Center, Water Wells, Lift Stations, Treatment Plant, Natural Gas Plant) for a total of $57,600. With the stated changes the budget would be in the green $23,600 to work with. There is a total Waterworks Fund change of $99,000; to offset this cost, Ms. Farace recommends: Add previous fund balance (the end of year balance of restricted funds for bond payment) $65,000 and remove the principle and interest payments $50,000 (which means paying off the water bore loan of $70,000) – giving the net adjustment for the Water Fund of $16,000. There is a total of Natural Gas Fund change of $63,100; to offset t his cost, Ms. Farace recommends: to increase the revenue by removing the $1.21 cap, raising gross profit to $67,000 – giving the net adjustment to the Natural Gas Fund of $3,900. (See attached in original minutes)

Alderman Bouse discussed the fact that propane is $1.65-1.69 a gallon and the natural gas increase is still less than propane. Alderman Moreland mentioned there is an equation to look at before considering this. Mayor Koch explained that a few years back when propane was $1.16 and Natural Gas was $1.00, the price was considered equal.

Mayor Koch stated the city needs to look at the line loss. Baldwin stated there are specialized meters to detect. More line loss in the summers due to the heat. In addition, part of the town is on an old electric system. Alderman Bayless inquired if the water and sewer rates are

CITY OF CUBA – BOARD OF ALDERMEN MINUTES – MONDAY, JANUARY 24, 2005 – PAGE 2

comparable with other cities. Comptroller Farace stated that they are as they were changed in 2002. She will check sewer rates annually and water rates every other year.

Mayor Koch added that in late 2005 or early 2006, Sho-me Power will raise their rates and pass along to us, which in turn will allow the city to pass along to our consumers with going to the voters.

Motion by Bouse, seconded by Bayless, to remove the $1.21 cap held on the Natural Gas price. Roll call vote: Bouse –yes, Killeen –yes, Howard –yes, Schroeder – absent, Bayless –yes, and Moreland –yes. Alderman Killen relayed that he did not want to do this; however, it is necessary. Discussion of actually selling the Natural Gas system was brought up. Comptroller Farace stated the system will be paid off in 2012.

City Clerk Christine Nash presented the council with a memo to have employee’s make a list of what they do and discuss with their immediate supervisor and (Bob Baldwin if you are in PW) and ultimately to meet with their Committee in helping to make the city’s salary schedule. Motion by Bayless, seconded by Bouse, to have the employee’s complete a position task list to turn in to Chris Nash. Vote: Five ayes. Schroeder – absent. Alderman Howard that she does not know of a company that would give a raise if they were in financial stresses and mentioned that the city employee’s may have to realize that is what may happen for the next year or so.

Mayor Koch announced February’s meetings:

Feb. 7 – Regular Council Meeting

Feb. 17 – Salary Discussion

Feb. 22 – Regular Council Meeting (on Tues. due to President’s Day)

Feb. 28 – Budge Discussion

All meetings begin at 5:30 p.m. in the Cuba City Hall council room.

Alderman Killeen noticed that a vehicle was not budgeted for the Police Department. Mayor Koch asked that he speak with his committee.

Marilyn Stewart of the Historical Preservation Commission sent a letter asking to apply for a Community Development Block Grant (CDBG) to expand improvements along Route 66 from city limit to city limit. Baldwin stated that engineering cost would be involved. Comptroller Farace stated that EDSI (Economic Development funds) could fund the engineering study. MRPC was recommended to write the grant as the city has several unused hours. Motion by Bouse, seconded by Killeen, to have a letter written stating the city is behind the application of the CDBGrant and recommends that MRPC writes it. Vote: Five ayes. Schroeder –absent.

Motion by Bayless, seconded by Bouse, to adjourn. Vote: Five ayes. Schroeder – absent.

Christine Nash, City Clerk