ROBERTSDALE, Ala. — In a couple of months, the City of Robertsdale plans to issue about $1.2 million in “General Obligation Warrants” to cover payments on several properties the city has or plans to acquire. Money from the bond will also be used along with some federal money to renovate the PKZ Hall to add bathrooms and storage space.

The city also hopes to sell about $1.8 million in “Revenue Warrants” to clear the 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.

Randy Rushton, an executive vice president of The Frazer Lanier Company, a firm of Montgomery investment bankers that represents the city in these matters was present at the meeting to answer questions from the council. All council members were present for the meeting.

Rushton told the council that the time seemed right to issue bonds.

“The last six months, business has been a little rugged,” said Rushton. “The good news is that the municipal markets have opened up again… Municipal rates are at an all time low.”

The city’s AAA bond rating, something he said Robertsdale has enjoyed for the past 20 years, means that Robertsdale is in a position to sell bonds quickly and at a favorable rate of interest. Revenues from the city’s utility services will back the utility revenue warrants, and the city’s “full faith and taxing power of the city” will secure the general obligation warrants.

The city has to do something now to clear the loans on the “Dicky property,” the “Blanchard property,” the new Chamber of Commerce building on HIghway 59 and cover the $39,000 cost of acquiring the “Kendrick property,” a bit more than an acre on Circle Drive, needed for sewer work, said Robertsdale Mayor Charles Murphy.

“Some of those notes are coming due this fall,” said Murphy, reminding the council that at budget time last year, it was said that the city would have to refinance some of those properties.

Council member Paul Hollingsworth asked some questions, and asked, “It’s great as long as we can afford it. Can we pay it back?”

Hollingsworth also asked if the projects were fixed or could be varied. Rushton told the council that the money could be reallocated with a little notice.

The mayor and the city’s Chief Financial Officer Ann Simpson assured Hollingsworth that the new debt could be covered from existing revenues and that some current debt used to purchase big-ticket items for the Public Works Department would be retired this year, and that money used to help finance this new obligation.

The council voted to approve the bond.

The council also heard from Dennis Sherrin, a shareholder in the city’s auditing firm, Hartman, Blackmon & Kilgore, P.C.

Sherrin sated that the city’s books were in good order, and the financial statements were in “accordance with current financial practices.”

“You have a good, solid foundation,” said Sherrin. He added that on the “utilities” side of the ledger, it might be a wise practice to eliminate or somehow account for some of the utilities department’s “bad debt.”

“This reflects well on Ann (Simpson) and her staff,” said Sherrin.

The council also heard from Police Chief Brad Kendrick concerning a contract to take up to five prisoners from Loxley and house them at the Robertsdale jail. The agreement was brought to the council last time and Kendrick said that there were some changes to the contract dealing with medical issues.

“Before we present this to Loxley, we’d like to have your blessing,” said Kendrick. He added that the jail currently has 32 beds, and the agreement would allow Loxley to use five male beds and two female beds.

The town of Loxley will be responsible for transporting prisoners, Kendrick said, and will have to have the prisoners back before shift changes at the jail.

City Attorney Ken Raines indicated that he had heard from Loxley’s attorney and there were some changes to the agreement still to be worked out.

“We just want to offset some of our costs at the jail,” said Kendrick adding that the current agreement would run through September of this year.

The council voted to allow Kendrick to work with Loxley.

In other matters, the council voted to:

— Approve a day for the Central Baldwin Education Foundation’s use at the Baldwin County Coliseum.

— Approved spending $150 for a sign for the Central Christian School Booster Club.

— Delayed approval of an Identity Theft Prevention ordinance to the next meeting.

— Approved a 4 percent lodging tax. While the city has no hotels or motels, Murphy said a bill granting a percentage of such a tax to new taxes to “tourism” is in the state legislature. By approving the tax now, the entire tax, should one be needed will go to Robertsdale coffers.