Refinancing of bond issues to save city of Robertsdale thousands

By John Underwood independent@gulfcoastnewspapers.com
Posted 1/11/13

Refinancing of a bond issue from 2006 will save the city of Robertsdale around $100,000, city officials said at the Robertsdale Council meeting held Monday.

Randy Rushton with Frazer Lanier made a presentation during the council’s work session …

This item is available in full to subscribers.

Subscribe to continue reading. Already a subscriber? Sign in

Local reporters keeping you informed across the Alabama Gulf Coast.

You can cancel anytime.
 

Please log in to continue

Log in

Refinancing of bond issues to save city of Robertsdale thousands

Posted

Refinancing of a bond issue from 2006 will save the city of Robertsdale around $100,000, city officials said at the Robertsdale Council meeting held Monday.

Randy Rushton with Frazer Lanier made a presentation during the council’s work session on Monday and the council voted unanimously to contract with the Montgomery-based investment banking company to refinance a $1.5 million bond issued in 2006 to finance improvements to the baseball and softball complexes at Garrett Park.

The council voted unanimously to contract with the company at a cost of $30,000. Ann Simpson, the city’s chief financial officer, said refinancing should save the city about $130,000 over the life of the loan, netting the city about $100,000 in savings. Refinancing will not extend the life of the 30-year bond issue, which runs through 2036.

Robertsdale and Silverhill opened up the new year with brief meetings Monday night at their respective city halls.

Following an hour-long work session, the Robertsdale City Council met for about 20 minutes Monday to conduct business, while the Silverhill Town Council met for just eight minutes following a 30 minute work session.

After paying bills and approving minutes for the council’s Dec. 17 meeting, Silverhill voted on just one item during its regular meeting on Monday, voting to purchase ammunition for the town’s police department at a cost of $1,100.

In Robertsdale, the council also voted to table a request from the Central Baldwin Baseball League to purchase equipment for the league after the legality of the move was questioned.

Under regulations set by the Alabama League of Municipalities, the city cannot give a monetary donation to an independent youth sports league, but can purchase and donate equipment.

However, the league is asking the city to purchase equipment on behalf of the league because the city can purchase equipment at a lower rate and does not have to pay taxes on the equipment. The league then plans to reimburse the city for the cost of the equipment.

“Are you sure this is legal?” Simpson said. “I just really want to be sure we can do this before any action is taken.”

Robertsdale Public Works Director Scott Gilbert told council members Monday that the equipment would normally cost just under $2,700 plus tax, but that the city could purchase the equipment for around $2,300.

In other business, the council voted to surplus the old radio and console for the police department. The RPD has purchased and is in the process of setting up new digital radio equipment per state requirement.

The council voted to contract with Thompson Engineering for services on the bridge replacement project on College Avenue at a cost of $70,191.26. The city will be billed for services when the project is scheduled for completion in June and will be reimbursed from grant monies obtained for the project.

The council voted to adopt a resolution stating that vehicles purchased for the George P. Thames Senior Center would be maintained up to federal requirements. Robertsdale Mayor Charles Murphy told council members that the request was made by Center Director Sarah Duncan and is necessary to fulfill grant requirements.

Both the Robertsdale and Silverhill councils will hold their next meetings on Tuesday, Jan. 22 because of the Martin Luther King Jr. Day holiday on Monday, Jan. 21.

The Robertsdale City Council voted on Monday to move its meeting, which is set for 8 a.m. on Tuesday. The Silverhill Council voted at its Dec. 17 to move its meeting to Tuesday, beginning with a work session at 6 p.m., followed by the council’s regular meeting at 6:30.

All council members were present for both meetings.