News
Blue Mountain Eagle
John Day to save
$280,000 with loan
payment plan
By Richard Hanners
Blue Mountain Eagle
The city of John Day in-
tends to save $280,000 by
paying off loans early.
On Dec. 12, the John Day
City Council unanimously
approved one of four options
for consolidating two Public
Works Fund loans through
Business Oregon’s Infra-
structure Finance Authority.
The city received an offer
from Washington Federal,
the same lending institution
that originated the bond for
the city’s new fire station, to
consolidate the two loans at
interest rates ranging from
2.34 percent to 2.49 percent.
The city’s Budget Com-
mittee had approved a recom-
mendation during the fiscal
year 2018 process to accel-
erate payments on a loan for
the industrial park near the
airport by $20,000 and on a
loan for the West End Water
System improvement project
by $100,000.
The chosen option will
save the city $283,060 but
includes a six-year call, at
which time the city must
make a bullet payment of
$720,000 to pay off the entire
loan. The city can cover the
cost of the payment by saving
$120,000 a year, which fits
into the Budget Committee’s
plan for the loans, Green said.
In other council news:
• According to a 2017
financial audit by Guyer &
Associates, the city’s to-
tal net position of assets
over liabilities increased
by $384,332 over the year,
“a modest but positive in-
crease,” Green said.
The increase largely was
due to revenue from the solar
eclipse event, receipts from
the U.S. Forest Service and
the value of the shop build-
ing acquired through the
purchase of the Oregon Pine
property.
CPA Kent Bailey issued
a “clean audit” but warned
the council about estimates
for Public Employees Re-
tirement System liabilities,
which were “all over the
board.” He
noted that
just a 1 per-
cent change
in market
interest
rates could
Nick Green dramatical-
ly increase
PERS liabilities.
“Trust me, we’re in the
good part of the cycle now,”
he warned.
City expenditures totaled
$2.5 million, with 23 percent
to sewer, 19 percent to water,
17 percent to emergency ser-
vices, 17 percent to police, 10
percent to streets, 7 percent to
fire and 7 percent to adminis-
tration.
The council also unani-
mously approved a resolution
to address $3,950 in excess
expenditures for the sewer
fund’s capital outlay report-
ed in the audit. Green said
the city’s estimate of closing
costs and title fees in May
for the acquisition of the
Oregon Pine property were
off by about 1 percent of the
$520,640.
The resolution discloses
the budget violation to the
Oregon Secretary of State
and provides a plan of action
to ensure future budget esti-
mates do not exceed budget-
ed amounts.
“We’ll need more of a
cushion if we do future prop-
erty acquisitions, which I
don’t expect,” Green said.
• The city received $4,945
in additional recreational
marijuana tax revenue from
the state.
• The council met in ex-
ecutive session to discuss a
performance review of City
Manager Nick Green and to
discuss ongoing negotiations
of proposed acquisition, ex-
change or liquidation of pub-
lic investments. News media
representatives were allowed
to attend but cannot report
on any of the deliberations
during the executive session.
• The council’s next
meeting is Jan. 9. John Day
will host the League of Or-
egon Cities Region 8 Small
Cities Meeting on Jan. 18.
Wednesday, December 20, 2017
A3
County ratifies creation of broadband coalition
County, John
Day and Seneca
will direct new
network
By Richard Hanners
Blue Mountain Eagle
Following a second spirit-
ed hearing, the Grant County
Court approved an ordinance
ratifying the creation of the
Grant County Digital Network
Coalition Dec. 13. The vote
was 2-1, with Commissioner
Jim Hamsher opposed.
With Prairie City and Can-
yon City not participating in
the coalition, Grant County
could be on the hook for 70
percent of future costs, Ham-
sher said. He said he wanted to
see the final version before he
could vote in favor.
County Judge Scott Myers
reminded him that “this is the
final version” — a memoran-
dum of understanding will be
presented later with more de-
tails about the responsibilities
of Grant County, John Day and
Seneca in constructing and op-
erating a broadband network
in the county. The ordinance
will go into effect 90 days after
approval by the court.
Opponents speak
Sixteen people addressed
the court on the matter on Nov.
22, with 13 in support of the
ordinance and one opposed.
This time, 21 people spoke,
with 13 opposed and six in
support.
Dan Driscoll, speaking
on behalf of Grant County
Farm Bureau
President Jeff
Thomas, said
the bureau sup-
ports improved
internet — but
not if it means
Scott
the
govern-
Myers
ment will com-
pete with pri-
vate enterprise.
Oregon Tele-
phone
Cor-
poration and
CenturyLink
can provide
broadband
Jim
to many city
Hamsher
residents, the
bureau said,
while rural residents could be
served by satellite.
Noting that the broadband
plan had divided people across
the county, Shaun Robertson
criticized the county for not
performing its due diligence
and conducting all the neces-
sary planning ahead of time.
While he commended John
Day City Manager Nick Green
for securing $1.8 million for
the project, Robertson said
he wanted the court to delay
a vote on the “half-cooked”
idea.
“We only have one shot at
this,” he said, adding that if the
network can’t help rural resi-
dents in Long Creek and Mon-
ument, “it will be a mistake.”
Elaine Smith agreed that
the network needed to serve
Long Creek and Monument.
She called the broadband
project “pie in the sky” and
claimed everyone someday
will be served by satellite.
Pete Hettinga presented
the court with a spreadsheet
estimating costs to construct
and operate a broadband net-
work in the county based on
information he obtained from
Ortelco and the internet. He
claimed the cost to run a cable
from Burns to John Day would
be $5 million.
Hettinga said the proposed
project was “not worth do-
ing” and “not necessary.” He
suggested spending the $1.8
million John Day will receive
from the state to extend exist-
ing fiber in Canyon City south
to Seneca — and not any fur-
ther. He also wanted any coun-
ty expenditure for the project
to be presented to the voters.
Harriet Crum claimed the
city of John Day was trying to
get rural residents to pay for a
project that would benefit only
city residents.
Ken Brooks said he was a
large taxpayer in Fox, and al-
though he supported improved
internet access, he was con-
cerned county taxpayers could
be stuck with the bill. He want-
ed to see the broadband bene-
fits extended beyond the John
Day area to Long Creek and
Monument.
Support and
response
Both Shannon Adair and
King Williams said Grant
County needed to have a
seat at the table and to be in-
volved in how the broadband
network was developed. Ha-
ley Walker took note of all
the “speculation” and point-
ed out that the county could
pull out of the agreement at
any time.
Green responded to the
comments by noting that Long
Creek and Monument were
never offered a chance to join
the coalition. Running broad-
band to the northwest part of
the county was “a tough nut to
crack,” he said.
He also said the Grant
County Internet Task Force —
a working group that preceded
the new coalition — has talked
with Ortelco and CenturyLink
four or five times. The city of
John Day has been designat-
ed the lead agency to receive
the state funds, but how the
money will be spent will be
determined by members of the
coalition, he said.
Myers agreed with Green,
noting that the task force has
talked to the companies “from
the start.” He also said that the
ordinance says nothing about
taxes or the county investing
any money in the proposed
network.
“We have not been reck-
less,” he said, adding, “It’s
time to get things moving.”
Commissioner Boyd Brit-
ton agreed it was time to move
forward.
“Grant County will not
be obligated to anything,” he
said, adding, “Nothing will be
done in the back room.”
Britton said the county
has been looking at ways to
get cellphone service to Long
Creek and Monument for a
long time without success. He
complimented Green on find-
ing the money for the broad-
band network and warned of
the consequences of not join-
ing the coalition.
“If you’re not at the table,
then you’re the main course,”
Britton said.
Grant County amateur radio operators licensed
From left, Grant County’s newest licensed amateur
radio operators Ron Flores, Mariah Skidmore, Michael
Shockley, Barb Dole and Ted Williams passed their
Technician Class Amateur Radio License examination
Dec. 4. This is the first time that groups of people
have taken the FCC-approved exams in Grant County.
With the encouragement of the Grant County Amateur
Radio Club, Rick Allen, pictured in the background,
held classes for four consecutive weeks. These five
people, once their call signs are issued by the FCC, will
be able to use local, regional and other repeaters to
communicate in cases of emergencies.
Contributed photo
A man wakes up in
the morning after
sleeping on an
ADVERTISED BED,
in ADVERTISED
PAJAMAS.
He will bathe in an ADVERTISED TUB, shave with an ADVERTISED RAZOR,
have a breakfast of ADVERTISED JUICE, cereal and toast, toasted in an
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ADVERTISED WATCH. He’ll ride to work in his ADVERTISED CAR, sit at an
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hesitates to advertise, saying that advertising doesn’t pay. Finally, when his
non-advertised business is going under, HE’LL ADVERTISE IT FOR SALE.
Then it’s too late.
AND THEY SAY ADVERTISING DOESN’T WORK?
DON’T MAKE THIS SAME MISTAKE
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Blue Mountain Eagle
MyEagleNews.com
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