Council - Special Meeting

To the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all.

Here that agenda for motion. Second. All in favor?

All right. We got discussion of current FY26 budget. I put that on because Jeff had something he want to say. with the talks of moving this building over here and and and turning that over to tourism. Uh when I went in there, when we put the windows in with Greg, uh he opened the back closet and he pointed out what he thought was mold all over the wall. Is there any possible way in this budget that we can get a mold test done in there before we open that up this year for the tourism or we have to wait until the next budget? We have to see how much the mold test would cost first.

I'm sorry. We need to see how much the B test would cost. I mean, I don't know how much the test would run. I would need to see the cost on that. Would that would that be pro? You would need some sort of bid. I don't I know how that slipped through because I had mentioned it when we did the clean out. I never had a key to that room. You don't have a key to it. That you're talking the closet in the corner. In the corner behind you. You told me it was locked. Yeah, it's locked. I don't have a key. I didn't know what was in there.

Okay. So, we need to get you get for that. I would suggest that before we answer the question. put into the current year budget because without knowing how much test cost you don't have any idea what you're talking about. So we put it all at a time. I mean the answer to that is yes another question. You're going to need to you're going to need to get a price on how much test it's going to cost first. All right.

With that being said, are we going to remodel that side as well, the walls and stuff like we did this side? Cuz it's just old paneling. That's going to have to be something to be budgeted, too. We can't we can't do anything with that until everybody's until he's out, right? I didn't know how quick they were to use it. a turnaround was, you know, one and one in there now that I mean, not that you couldn't use it like that, but the one side's re redone. All the panel was painted, the ceiling tile was painted. We could we could close off the one side until budget time and then Okay.

Yeah. And I that's what I would that would be my recommendation. We can't we can't let people in there if that is black mold in that closet. Yeah, my suggestion would be to definitely um did that service out and find out how much it cost.

So, we just wait and we can't let them in there until we find out. It may not be back. All right, that's just tablet for now. That needs to be uh tested. I'm going to make a motion that we close that one side off till we find out. I don't know if we can vote because we don't have it on this cuz you didn't tell me what you wanted on it. That's not on it to vote. Can we don't think we can vote for that not being on the agenda. What do you think, Lane? I don't think per Lance said without with nothing being itemized on this, he says you cannot vote as it's just a discussion.

But we can do that next week on Tuesdays though. You would do that to next Tuesday. Y that's what I that's why I asked you when was talking. Well, I was hoping we could do something tonight where we could get the get the test. Well, see people had a hidden agenda that we didn't post what we were going to talk about. So, we'll take the next meeting. So Lance asked me what was on the agenda and he went okay I went through and he just make sure they don't vote unless it's the next meeting. Yeah, we're going to take a motion. All right.

Okay. The next discussion u I've got one thing for the budget if that's okay. um on this thing with the um the hood park. The scoreboard had a controller that was part of our parks, actually part of that park because all that was donated. So if the people do not return the controller, do we have the budget in the parks to provide them with that controller so that Well, right now, Mr. Pitch, that's not on this eater to discuss.

It's on the budget. to discuss. Well, it's something that we should consider. And I'm just asking what's the budget for the parks right now? Would it handle a $1,200 controller? Well, it's an item that's not um in the budget. So, um with it being that large of an item, we would have to look at the um facility as to where we would need to put that in. So, we might put that on the next to see if we can do that because They got to have control over that that board. So most people help. But our is just the fields that we do. We don't you know we don't but it's up to the board. I mean the board wants to do it.

But once the once the board once that scoreboard was donated to us, it was ours to to keep up and everything. So I can tell you this is in with the attorney right now and he has not provided a full answer. Good. Okay, that was turned over to the attorney. The missing everything in there. Okay. All right. Let's discuss this what I just said. The LPUA P electric bill payment plan and approver.

So, um I received our February electric bill which is for the January usage. I apologize. I'm sorry. I can't talk very loud. I don't have a lot of breath. My asthma is kind of inflated right now. I'll talk as loud as I can. Um the total bill for January was 1,19,7427. They have offered to withdraw on February 18th 676,572.75 and the remaining balance owed from Wintertorm Fern will be um $432 $432,5152. um that remaining balance um will carry forward with a potential interest of 5% occurred over a 9-month period. So, um there is no way to tell on this bill that you have in front of you whether what is the normal versus what is firm. Um I did speak with NPUA today and they did say that the minimum they did um try to give us on the first payment the minimum bill looks like the cold would a cold January but the exact amounts aren't 100% tied out. She did tell me that January began very mild um and ended very um you know what it did in winter harm. The natural gas prices are what were driving this um

cost. They were 10 times higher than normal. I can attest to that because our natural gas um bill was doubled it for award as well. This can all be verified on the EIA website if you want to take a look at that. I did speak with our auditor to get some consulting advice on how we should move forward. Payments will be approximately 50,000 a month. So the first payment that we make will be 676,572.75. the remaining balance split over 9 months. We could pay approximately 5% in interest, but it could be less if they get to use reserves. We don't know that atro right now. We're they have to consult um another board within their organization. The interest will be between 17 to 18,000. The customer will pay their portion through the PPA in both scenarios. Whether we pay full price at one time or whether we pay payments take approximately 3 months to pay back the bills through the BPA. I'm not approximately sure on the payback how long it'll take.

How many how many months pay back?

We think approximately three months, but that's not confirmed. I could not get a hold of likely to design the PPA. We think approximately three months. could be longer um but we think approximately three months. So my recommendation since um is to do the um pay over 9 months because you're going to deplete your cash flow in the electric department. You have more than just worrying about getting back up. You have large projects that are coming out. You also have at the end of the year transfers into other departments that you have to pay back and you don't want to strap your electric department over time. You do not have the cash flow to pay this pay this down and worry about strapping your electric department. This will give you the time to um raise the cash flow back up to where it needs to be and you won't be strapping that electric department down. You recommended nine months

do it's on the advice of the auditor. The auditor and I spoke and this is what he recommended as well. Will it be a pass through to the people? I'm sure. Yes, it will. What if uh we haven't another storm in two or three weeks or what if it gets really really hot during this time we're paying this back and it gets into peak again

again? I can't unfortunately I don't have those answers because those situations haven't haven't occurred. I can tell you that when I sat on the phone call on January 28th with the rest of our group, those questions did come up and they said we have to tighten our belt. We have to do better. Our reserves within our organization have been depleted and we are trying to get those reserves within our organization within the member cities back up. So, and did you say that normally we paid $30 per MHz and it the peak went up to $500 per

I would say around we I would say we're normally paying I think I saw um I think I saw somewhere where we it went you could say approximately 30 I'm not going to say that 100% that's accurate but yeah you could say we were paying maybe it would jump I don't have those sheets in front of me but it was 30 to 40,000 in the natural gas is what we would normally pay but um on the electric side we're paying for demand. So the demand over winter storm burn went up 10fold and it was based on natural gas prices. So the natural gas price went up 10 times what it normally is. And this happens every few years because if you remember a storm Yuri, we had the same same effect. And I looked back at natural gas prices um for I had to do this for the auditor not too long ago and the same effect happened back with um wintertorm Yuri as well. We saw the same effect not so many years ago with Wintertorm Yuri. We're seeing the same thing. We've been significantly lucky with our winter storms that we haven't seen the same effect happen um with the prices. I will let you know that they were they did have to shoot out some $900 per kilowatt hour um electric. I don't know what cities got got hit with that, but they did say that they had to purchase those powers. Um um some of them was in the $400 to $500 ranges where they they transmitted that electric. We don't know. We just sit on these calls and they tell us this information and they do the best they can to purchase it. But when the demand gets high, they have to purchase at high prices.

Now, this is based this isn't based on our usage. It's based on a conglomerate. Um no, this would be based on what we paid. Yeah. General. Did we peak in electric and peak in gas? We did. Yeah, we did. Okay. I mean, you can look and she said um last month we used 7 approximately 7.1 um in December because the prior month energy charge was 7.1. The in the current month in January it was 7.7 kilowatt hour. I got you. So

So you're talking about interest on this. We're talking 17 18,000 per month interest. for eight or nine months. That I wrote that down, too. So, that's kind of how you worded it. So, is it 9 months and a total of 17 or 18,000? So, it be 450,000 and total approximately um additional payment. So, 400 and some thousand,000 per month approximately. Do we have that reserves? at the back reserves right now. Could we pay this bill and save the citizen $450,000? Cut your reserves in half. Huh?

I don't think you I me personally I don't want to cut this the tax the uh electric department's reserves in half. How much do we have electric fund right now? We have And then how much do we have reserves? We have 2.6 million in reserves. and in the count of the electric too or just two in the reserves and two in electric and you're going to spend three or 400 million um right off the bat um on a huge project and you have other projects within the city that you have to do.

Yeah, but we're going to get this money monthly back is what I'm saying. I I just hate to pass on interest. I get it. But are you saying $19,000 a month? 17 to 18. Is that per month? Or is that $19,000? N is Yeah.

The way you worded it, it said months 5% interest at 17 18,000. So that would be a month at least. So yeah. Okay. So that's per square month. We we can try to pay it off and I believe we can pay it off because we got the money coming back in. But I don't get to vote on this. But that's just my opinion.

I want to say $450,000. Because you know what? Even in our budget for 9 months, we're going to budget this so much per month next year budget so we can pay it off. And how much interest would we get out of these uh reserves anyway? We're not getting any interest. We voted to put all the interest in the general fund. The general fund would not have to borrow any. So all the interest stays in the general fund. I did it any way possible at all. Pay himself. But that's up to this board. You want to go 9 months? That's up to you all. Okay. Well, hold on. 9 months at $18,000 is only $162,000. You said $400 and something. So,

it's 50 It's 50,000 a month approximately is the payment because it's $432,000 at 550,000 a month. I made 450,000. Yeah. 50,000 a month in the payment. But you said 480 something,000 in interest. Yeah, you 162,000. Did you? Oh, yeah. Maybe I It's been a long day, guys. And they haven't even made their payment schedule. Sorry. That's all right. I I raised a payment on APY. Uh and they gave me $50,000. That's what they told me. Approximately $50,000 $50,000 a month for payment.

And they haven't gave you the full payment schedule yet. So, I apologize. And that's over and above. And the said 17 to 18,000 total. And I wish I wish I hadation schedule, but I don't amount. So we'd only be 162,000 in interest. Is that what you're saying? The interest would be on the full amount, the 1 million sum, right? No, because we're paying 676,500 right off the bat. Then it would be on the left, whatever number that was. $432,515232,510.

All right. 600,000 on 11 500,000. Well, 432 and 162 the whole 9 months 9 months 432 instead of taking half return about 225,000 We got next Tuesday, right? We got to the 18th.

The 18th and they will automatically why we call the special meeting. When's the next meeting? The 17th. Would it help if we moved on to the next thing and you know like went to your office and figured something out? I can do that. If if the reserve is 2 and a2 million and the bill is a million one, we're already going to pay 600,000. You're not going to need that reserve. I know half you're going to be taking 47,000 out the reserve. Yes.

And you're going to pay if you don't use your reserve, then you're going to pay 180 leverage interest. I know. So simple a minimum on simple interest is about $17,000 total interest um per month per total interest for 9 months. Yeah. Per month. And the interest would be $1,800 a month. Also the 50,000 tax to the next month. Month. Okay. So we have another big letd down. We're going to have another million dollar bill plus 50,000. So where is the 676,000 coming from?

The down payment we have to make it would come from our electric bill from our electric electric cash. So then it'd be 432501 would come from reserves if we paid the whole thing. No, it would come from our electric cash. Electric. It doesn't come from reserves until over if it's 9 month. No, she said total. You said simple interest is 17,000 total. 17,000 total. No, she saidal. Simple.

That's what was throwing me off. I was like, that's only $17,000. Mhm. A for 9 months. It's $1,800 a month. Most students and I mean I I will verify that um with MPA, but they're going to give us a schedule. Can we wait till Tuesday to make a decision on this and the next morning you let them know and you can get all the information for us to make sure that it's right. I don't I don't know if it's that or this is an auto they autoraph this.

Oh So I don't stop. Can we vote on this? And that's pending. You're right on your information. I will verify tomorrow because this ties us up for nine months. And if we have another problem, we got another bill. We got another interest. Well, how how would we pay it? Payments for 9 months. I I would say for your 1,800 for 9 months and then if we pay it off early, get the numbers in like you're talking about 18,000 for 9 months, right? You said 1,800. Well, 1800. Okay.

Can we pay that off earlier? They still going to charge it that percent. We can't pay it off early. A lot of loans are you pay that percent you pay it off early. There's nothing in the writing that says we can pay it off early. Can't pay it off early. I think so. Well, this is truth. I remember that now. My opinion is pay the whole thing, but that's up to this board. I'm kind of there. I heard there too. I'm going that way too. Are there any projects that we could take out of capital improvement to improve the cash for electric?

No. We got to do that and we got to improve it. We're not going to improve. This board has this ever happened before. When was that? Um, did you pay it off or did you go We're still paying it off. Is that 1.2 that we talked about earlier? We paid it off. That was the 1.2. So, the customers paid it back over a 2-year time and we're paying it back over a 5year period. Okay. So, we're still paying on the last.

Yeah, that's the long. pay the total bill and take it out of it reserves what we need and pay back the reserves. We can't take it out of reserves or out of the electric reserves you take it out of your cash but it comes out of your regular budget and once your budget is exhausted then you hit your reserves. Yeah. Unfortunately $10 something. Yeah. I pay the bill and then we can pay it back when we get it in. Yeah. We get it in slowly x back in.

So the customers will pay a portion of this. It hits their PPA and if we need it if we need a rate adjustment and the electric we should study that and get a we know that but just say we all this time is we we're not discussing. I made a motion that we pay in full. also did the thing. Hey, yes. Yes. Where am I? Yes. Yes. Yes. Yes. Can it be done?

It's going to totally limit your cash flow in the electric department. It's not my recommendation and it's really not yours. It can be done. So, what happens if we have an ice storm? We got reserves. Yeah. 2 what? Five. 2.6. Right now, our reserves are for emergency. Yeah. 1.5, but you transfer into your general fund every year. What's our $2.6 million draw at the bank? Your 2.6 does nothing in your electric department. It goes to your general fund, right? But is it in the bank?

It's a variable um variable every month. So it's roughly about two 2% at the bank, but it does nothing for your electric department, right? But we can if the electric part department needs money, we can pull money out of the reserves to help them. Correct? So I'd rather draw 2% interest than pay 5%. That's just the way that

I think. It's already passed. Yes or no? Well, trying to state a citizen a lot here. I want just because Jennifer recommends against it. I'm Hey. All right. Moving on. 208. Move to have the third reading of bill number 2208. Huh?

Have a second. Second. All in favor? An ordinance authorizing the mayor of the city of Cuba, Missouri on behalf of the city of Cuba, Missouri to enter into an agreement with Crawford County Youth Football for the use of facilities located at Cuba Park. Have a motion second. Ro. No, we got written first. No, we just read confus. Yes, the same. I guess really before I did that, I should have asked Sierra if everything was all right in that contract.

Yes, sir. You good with that? Okay. Sorry about that. Okay. Motion to have the second reading of bill number 2208. Motion. Second. All in favor? I. An ordinance authorizing the mayor of the city of Cuba, Missouri on behalf of the city of Cuba, Missouri to enter into an agreement with Crawford County Youth Football for the use of facilities located at Cuba Hood Park. to accept deferred reading of bill number 2208. All right, you confused it. Second proc. Yes. American.

Yes. Bill number 228 becomes gardens 957 on this 12th day of February 2026. All right. The last one for joint. Get out of here. I just I just want to wish my condolences to see her family and he was a good man. Mark family. I think we're allerg.