City approves bond issue

By Donna Riley-Lein
Independent Staff Writer
Posted 6/2/09

ROBERTSDALE, Ala. — The Robertsdale City Council approved the issuing of about $3 million in bonds at its meeting Monday night. All members of the council were present.

“General Obligation Warrants” totalling $1.2 million is to cover …

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City approves bond issue

Posted

ROBERTSDALE, Ala. — The Robertsdale City Council approved the issuing of about $3 million in bonds at its meeting Monday night. All members of the council were present.

“General Obligation Warrants” totalling $1.2 million is to cover payments on several properties the city has purchased. Bond funds will also be used along with some federal money to renovate the PKZ Hall to add bathrooms and storage space.

The council also approved about $1.8 million in “Revenue Warrants” to clear a 2003 bond issue, and pay for “clarifiers” at the waste water treatment plant, upgraded electrical service, a sewer line on Kendrick Road, and overages to a sewer grant.

According to Randy Rushton, an executive vice president of The Frazer Lanier Company, a firm of Montgomery investment bankers that helped the city issue the bonds, the interest rate will be 4.99 percent.

“It was a very good sale,” said Rushton, noting that while the bonds are not insured, the city’s long-running AAA bond rating made them desirable in the market.

“The finances of the city are absolutely excellent,” said Rushton.

According to comments from Mayor Charles Murphy, the payments on the bonds, both 30-year notes, will be about the same as the city’s current payment, especially when the 2003 bond is retired.

“As long as we can make the monthly payments,” said council member Paul Hollingsworth.

Murphy noted that several “balloon” payments are coming up on properties the city has purchased and meeting those payments would be difficult without the bond. The properties include the “Dicky property,” the “Blanchard property,” the new Chamber of Commerce building on HIghway 59 and the bond will cover the $39,000 cost of acquiring the “Kendrick property,” a bit more than an acre on Circle Drive, needed for sewer work.

The council approved the sale unanimously.

The council also heard from Michelle Prockup, director of the Robertsdale office of Catholic Social Services. The city has selected CSS to administer it’s “Neighbors Helping Neighbors Utility Assistance Program.”

According to Ann Simpson, the city’s chief financial officer, Robertsdale has upgraded its software to permit the “rounding up” of utility bills to the nearest whole-dollar amount. The first notices of the program went out with this month’s utility bills, and the program will begin in August. Customers who wish to opt-out of the program may call the utility company. Simpson estimates that the program will cost customers about 50 cents a month,

The money will be placed in a separate account that CSS will use to assist Robertsdale utility customers who have run into a circumstance where it’s hard to pay the bill. CSS will not be permitted to over run the account, but may “roll over” funds from summer months to cover heavier winter demand.

CSS has done this before, and knows the need.

“We’ve probably paid over $10,000 in utility bills for Robertsdale,” said Prockup, who added that CSS never pays the entire bill.

“You have to come up with some of it to show good faith,” explained Prockup.

“We’ve heard positive comments (about the program) on the street,” said Simpson.

The council voted unanimously to award a five-year contract to CSS. Either side may pull out of the agreement with 60 days notice.

The council also voted to permit CGI Communications, a New York company to place video movies of the city’s Web site. There will be no charge to the city for the videos, which CGI will support by selling advertising space on the Web page.

The council also voted to:

— Reappoint Theresa Bryant and Kenny King to the Library Board.

— Approve a contract with DRC Emergency Services to clear debris should a hurricane strike

— Approved a contract with CDG Engineers for new sidewalks.

— Approved the leasing of city property on East Chicago street, about 10 acres, to Terry Childress for $30 per acre to farm. “That way we don’t have to bush hog it,” said Murphy.