02/23/2009-4B-Minutes-RegularMINUTES: SANGER TEXAS DEVEWPMENT CORPORATION
February 23, 2009
MEMBERS
PRESENT: John Payne, Barbara Martin, Beverly Howard, Scott Stephens, Beverly
Branch, Jeff Springer
MEMBERS
ABSENT: Will Dutton
OTHERS
PRESENT: City Manager Mike Brice, City Secretary/Asst. City Manager Rose Chavez
1. Call Meeting to Order.
President Payne called meeting to order 6:05 p.m.
2. Approve Minutes: October 27, 2009.
Motion was made by Beverly Howard to approve the minutes as presented. Beverly
Branch seconded the motion. Motion carried unanimously.
3. Consider and Discussion on Purchasing Property for a Sports Park.
City Manager advised that an agreement was finally reached with the Porter's on the
property down by Clear Creek. The agreed price was at $4,000 an acre on a total of
about 40 acres. This is basically in the flood plain area and does not include the house.
Part of the agreement is for the City to build a road that extends Keaton Road South
from Clear Creek Elementary into the park, and then bring a road East and West to
connect that road to the Service Road North of the house.
City Manager has sent the contract to the City Attorney to review and make any
necessary modifications. This property should be adequate for soccer fields and
baseball fields for the near future. The property extends to the creek. There will also
be enough area to allow for walking trails and pavilions along the creek.
Discussion continued regarding the total cost for the property was $160,000.00 plus the
cost for putting in the road.
City Manager recommended that the land be purchased from existing funds since the
funds are available to pay for the purchase. He will prepare the cost for putting in
the park and for the development of the road. The Board can then consider a bond
issue to pay for these improvements. The City Manager advised that there is already
a water and sewer line on the property. The discussion continued regarding fmancing.
The bond issue will probably be done by the City, with an agreement between the City
and 4B. If the bond issue is guaranteed by the City it will allow for a lower interest
rate.
Jeff Springer made the motion to purchase approximately 40 acres of property from
Eagle Farms LLC for the development of a Sports Park for $4,000 per acre and to
authorize the City Manager to execute the contract and proceed with the purchase.
Seconded by Scott Stephens. Motion carried unanimously.
Brief discussion followed concerning the location of the sewer line. The Board
members discussed the existing house and the property around it is currently under
contract for sale as commercial property.
4. Project Updates:
a) Streetscape
b) Downtown Park
a. City Manager gave a brief update on the Streetscape Project and advised they have
had some trouble getting the contractor to come back and finish the project. He
has advised staff to put them on notice and that they need to finish this week;
otherwise, liquidated damages will start.
Barbara Martin expressed a concern in putting down the sealant on the bricks with
all the dust that is in the air from the construction project that is currently in
progress. She also indicated when the contractor came down to power wash the
sidewalk and bricks, they never power washed the buildings.
City Manager indicated he will make sure John Henderson is ·made aware of the
situation.
b. City Manager informed the Board that everything is in for the Park Project and
they will start within the next month or so. James Hunter has been working with
the Electric department to get the lig~ts in.
Beverly Howard asked if the City can look into a speaker system at the Park.
City Manager advised this was not part of the Park Project, but he can certainly
look into it.
5. Review Financials.
President Payne asked if the economic climate and the current situation have impacted
sales tax collection revenues.
City Secretary reviewed the sales tax collections summary report, f"mancials and
discussed the interest earned to date. She also discussed the changes in the interest
rate that became effective January 1, of this year.
City Secretary indicated that the sales tax revenues are holding at a steady amount
There has not been a noticeable decline in the revenues.
President Payne expressed a concern and advised that he is currently involved with
another city that is close to Sanger. One of the things that this City had to do in their
current budgets is to cut them by 15°/4 or better. He asked if they need to look at their
financial status differently and save for a "rainy day" or keep "trucking" in the same
direction.
The City Manager indicated that they may see a drop this year in sales tax revenues,
but the only thing he can attribute to the collections staying up is more people are
spending and shopping in Sanger. He is not sure that we have seen the worse part of
the economy, but an advantage the Board has is that they are financial stable. There is
not any current debt, and the Board is getting ready to spend some of those monies,
but we are certainly going to keep a healthy reserve in the bank. In considering a
Bond Issue we will make sure that it is done without committing all their funds to
allow them the capability of funding projects in the future. They certainly don't want
to commit all their monies for the next five, ten or fifteen yean. We want to make
sure that we can absorb a contraction in the sales tax if needed, and for the Board to
continue to fund future projects as well as building a Sports Park.
Jeff Springer inquired how the certificates of deposits are structured.
The City Manager discussed there is one Certificate of Deposit invested in a 30-day
investment earning 1.85%. There was "iscussion in investing quarter of million for a
one year term to get a better interest rate.
Jeff Springer suggested that we "shop" the rates. He suggested that we possibly take
some of the monies and break them out to where those investments mature on a
quarterly basis. Discussion continued on punuing this option.
City Manager advised he will prepare something to get it back to the Board. There
was discussion concerning bond payments and what can be available for future
investments. Grants were also discussed as a possibility along with availability of
Federal Funds.
6. Adjournment.
Beverly Branch made motion to adjo~m. Seconded by Barbara Martin. Motion
can:ied unanimously. ·