budget, and adoption of tentative FY 2010-11 city budget was given. After discussion, all motions were passed unanimously. Public hearings on all three budget matters were held on June 17, 2010. Funds for the Pioneer Special District are collected from users in the new subdivisions which are within the district. Operating the secondary water system is the primary expense. All residents should thank Mayor Butler for his work and wisdom on the budget, his thrift, and concern that we have no municipal property tax levy. July 1, 2010, began a new fiscal and budget year. The Pioneer Post tor May reported to the community that although the recession continues to take its toll on state and local governments, the city was holding its own without imposing a property tax. Building rental rates were increased for the senior center, but the cleaning deposit requirement is now eliminated for most private activities. The city has increased the building rental rate to $75 for residents to help cover building maintenance costs. Non-resident rates are usually double. The Central Weber Sewer Improvement District increased rates for sewer treatment. Garbage rates remain unchanged. Mulligans Golf Course, as a business, has been seriously impacted by the reconstruction of 400 North. Both the city and Boyer Company have overpaid the necessary match on the project, so there will be a refund. In September, City Administrator Bill Morris said the city has negotiated with Boyer for the city to receive approximately $120,000 of their refund on the project to use to compensate the golf course by a low-interest distressed business loan. The terms negotiated with the golf course include: (a) the principal amount of the loan would be $120,000 payable from the refund to assist for adverse road construction impact; (b) the payment would be made in four monthly advances of $30,000 per month, commencing as soon as possible; (c) interest on the loan would accrue at the rate of 2% per annum starting July 2011; (d) the loan would be repaid over a 24 month period beginning in July 2011. If the golf course fails and the city has to buy it, the money would go towards any down payment. A main concern of the council was setting a precedent for other impacted businesses as a result of the construction. Mr. Morris said the other businesses on the street are veterinary establishments which have not been impacted as heavily as the golf course. Impacted residents have received compensation, but the golf course did not. The city utilizes the secondary water system of the golf course for the city irrigation system, and has an interest in the preservation of the system. Mr. Barry Panter asked about pressurized secondary water on 400 North, and was advised that the new line will be gravity flow at present. It may be pressurized from the golf course in the future. The council unanimously approved the loan, with a written agreement by Mulligans addressing the security of the secondary water. Ogden City originally asked $29,000 for the slip line work on 12th Street. However, approximately 375 feet of the project could not be completed because UDOT adjusted the line. In November, 2010, Mayor Butler and Mr. Morris negotiated a $5,800 reduction in the cost, as a savings for the city. Ryan Child and Steve Davis, independent auditors, attended the December 16, 2010, Council Meeting, with Mr. Child reporting the results of the audit performed for the fiscal year ending June 30, 2010. He noted that the city is in good financial shape and still has no property tax. He made some suggestions on journal entries and internal control issues, advising that an additional person beside the one who prints checks, sign them, to prevent any risk of abuse. The city exceeded the 18% state cap on revenue, and about $52,000 should be transferred to capital projects. He complimented staff on obtaining grants to help the City financially. The Pioneer Special Service District is also operating within its budget.