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City Council Special Meeting-Budget - Thursday, June 25, 2026 at 1:30 PM - Part 1
Published: Jun 25, 2026
Professional Services Budget Increased for Water Rate Study
The council considered the budget for professional services, specifically allocating funds for a water rate study. This study, estimated to cost between $40,000 and $60,000, is deemed necessary due to the long interval since the last comprehensive review and the need for data to justify potential water rate adjustments. The budget for professional services, currently at $300,000, would be increased by $40,000 to $60,000 to cover this study. Council members supported the initiative, recognizing its importance for informed financial planning and rate setting.
Water Department Budget Focuses on Capital Projects, Rate Study; Gas Budget Increased
The council reviewed the water and wastewater budget proposals. Significant capital expenditures for a new storage tank (Tank 5) and the initiation of the process for a new well (Well 18) were discussed. While the exact costs for these projects were not finalized, they would be funded from capital reserves. The water department has sufficient funds in reserve to potentially undertake these projects in-house, thereby saving on interest and avoiding future debt. The water rate study was also discussed, with a proposed budget of $40,000-$60,000 for professional fees to conduct the study, which is deemed necessary due to the long time since the last study and the need to justify annual rate increases. The budget for professional services was increased by $60,000 to accommodate this study. The gas and oil budget was increased from $25,000 to $30,000 due to current market conditions.
Airport Manager Role Transition: Cost vs. Revenue Debate
The council debated the financial implications of transitioning the airport manager position from a contracted role to a city employee. While the estimated cost for a city employee (salary + fringe) is $117,000, replacing the current $48,000 contract, projected new revenue streams from fuel sales ($70,000) and hangar leases ($57,600 annually from the new hangar, plus potential revenue from a second hangar) were presented as offsets. Concerns were raised about the immediate expenditure versus future revenue accessibility and the need for a capital reserve for fuel purchases. The decision was deferred, pending further financial analysis.
Airport Manager Transition to City Employee Debated; Decision Deferred
The council discussed the airport's budget, specifically the proposal to transition the airport manager position from a contracted role to a full-time city employee. This transition would increase the overall cost due to fringe benefits but is expected to be offset by new revenue streams from fuel sales and hangar leases. Projections indicate that fuel sales could generate $70,000 in revenue, while the new hangar will bring in approximately $57,600 annually from leases, with a second hangar anticipated to generate an additional $3,000-$3,200 monthly. The total cost for the city employee position, including salary and fringe benefits, is estimated at $117,000, replacing the current $48,000 contract. The council expressed concerns about the financial feasibility and timing of this transition, particularly regarding the immediate expenditure versus future revenue accessibility and the potential need for a capital reserve for fuel purchases. The decision was deferred to a future meeting.
Fiber Optic Revenue Projections and Potential Rate Adjustments Considered
The council discussed the financial aspects of the fiber optic network, including projected revenues and the potential for future rate increases. Projections indicate revenue from fiber utility fees for 250 homes at $1750 per month, with current customer connections nearing 600 and a projection of 700. The number of building permits is 250, considered conservative given new developments and pre-wiring efforts. The possibility of increasing the monthly fee was raised, referencing Ammon's approach to rate adjustments. The council also discussed the allocation of the economic development director's salary, with a preference for it to be solely under administration, although it is currently split across departments.
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The Mountain Home News archive
City Council Special Meeting-Budget - Thursday, June 25, 2026 at 1:30 PM - Part 2
City Council Special Meeting-Budget - Thursday, June 25, 2026 at 9:00 AM
City Council Special Meeting-Budget - Wednesday, June 24, 2026 at 9:00 AM
City Council Special Meeting-Budget - Wednesday, June 24, 2026 at 1:30 PM
City Council Regular Meeting - Tuesday, June 23, 2026 at 5:00 PM
Planning & Zoning/DIFAC Regular Meeting - Tuesday, June 16, 2026 at 5:30 PM
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