The City of Holbrook took out a $5.5 million loan in 2001 to build the city’s new wastewater treatment plant, with a promise to pay off the tab by July 2020. With the efforts of Assistant City Manager and Finance Director Randy Sullivan, the total payoff is going to be reduced by about $60,000.

At Tuesday’s city council meeting, Sullivan announced he has been able to refinance the city’s loan that was secured from the Arizona Water Infrastructure and Finance Authority (WIFA) to build the treatment plant. Currently, the WIFA loan finance rate is 3.5 percent; the refinanced rate will allow for the cost savings without extending the payoff date for the loan.

“The reduction will help with our budget next year and the years after that,” said City Manager Ray Alley.

Going into the 2012 budget year, the city still owed $439,000 on the treatment plant.

Sullivan secured the WIFA refinancing in preparation for the city’s annual budget process, which will be kicked off in a work session following the regular council meeting on Tuesday, March 13.

In other business, the council voted to enter into a lease agreement with American West Potash, which will be opening an office in a building owned by the city at 410 E. Iowa St. The building formerly housed Holbrook EMS. American West will pay $1,000 a month for the space, with the lease effective March 1.

The council also voted to renew its contract with Waste Management of Arizona, Inc. for city landfill services. The current landfill services contract expires March 1. The city received two bids for the services and Waste Management was the lowest bidder, offering to continue to dispose of waste for the current contracted rate of $17.50 per ton and to transport waste for $142.50 for every container hauled from the City of Holbrook transfer station. Blue Hills Environmental Association, Inc., of St. Johns submitted pricing of $20 per ton and $350 per trip from the transfer station, though it would haul two containers at a time for the $350 rate.

“Waste Management’s rates are the exact same as last year. I recommend we re-award the contract to them,” said Alley. “They’ve done a good job for us, a real good job.”

During the meeting, the council decided against appointing a committee to review the Holbrook City Charter.

The city’s charter includes a clause that the council may choose to conduct a charter review every four years, but it isn’t a requirement.

“I see no need to review it,” said Alley. “In everything I’ve ever needed to do, the charter has been adequate. There’s nothing broke; I don’t think we need to fix it.”

Vice Mayor Charles Haussman asked, “Knowing the city may entertain growth, are you comfortable with the charter tenets as they relate to growth?”

City Clerk Cher Reyes responded, “I would say that if we think there are going to be major impacts from growth, we should start reviewing the general plan. That document would deal with growth; the charter doesn’t address growth. The general plan is more pertinent for that discussion.”

The only other action of Tuesday’s meeting was a vote by the council to author a resolution in support of the White Mountain Apache Tribe’s efforts to find funding for equipment upgrades of Sunrise Park Resort.

The Apache Tribe has requested all communities in Navajo and Apache counties lend official support for the tribe and the ski resort, acknowledging the tourism benefits realized in the region as a result of the resort’s operation.

Alley said the tribe is seeking the letters and resolutions stating the value of the resort to the region as it seeks to secure funding to repair ski lifts that are reaching the end of their safe operating life.

“Properly run, properly managed, Sunrise could be an asset to the region,” said Haussman, in favor of the resolution. “If cars drive through the area, say Holbrook gets 1,000 cars a year from resort traffic, and they stop to eat or get gas, there is a gain financially.”

His first sentiment expressed about the topic questioned why the Apache Tribe needs financial assistance.

“As an avid skier, I find it interesting, with some of the crowds I’ve seen up there, paying what it takes to ski, I have a hard time understanding how they don’t have the money or how they haven’t planned for this,” Haussman said.

Councilman Richard Peterson questioned what the source for the funding would be.

“I’d be in favor of bonds or maybe some state funding to help out, but if they’re looking for a federal buyout…” he let the thought hang. “ I just have a philosophical difference on that,” said Peterson.

Alley said he thought the tribe was hoping to secure loans through a financial institution, rather than seeking federal funding, but he wasn’t certain of it.

Overall, the council expressed the concern that a resolution be worded in a manner that it would not obligate Holbrook to assist the tribe in securing funding, rather that the city would provide a show of support for the resort.

With that caveat in place, the council voted unanimously to approve the resolution.

In general reports, Councilman Peterson acknowledged the Holbrook High School boys’ basketball team making it to the state playoffs.

“They made it to the final four and are to be commended,” said Peterson.

He also remarked on the reconstruction underway at the city pool.

“When you go to the swimming pool, you’ll think a miracle’s happened,” he said, referencing the overhaul of the shower and changing room facilities.

Alley reported the swimming pool renovations will be complete by May. He also said the city’s new well will go online this week and that work is progressing on street improvements in the area of 12th Avenue, with road crews planning to replace curbs on Delaware Street next. When the weather warms, the crew will proceed with street replacements in those neighborhoods.

As the meeting adjourned, Alley remarked on a side note, “This marks two years and four months that there has been no executive session.”

The next regular meeting of the Holbrook City Council will be held at 6 p.m. on Tuesday, March 13, at city hall, located at 465 First Ave.