03/23/2009-4B-Minutes-RegularMINUTES: SANGER TEXAS DEVELOPMENT CORPORATION
March 23, 2009
MEMBERS
PRESENT: Barbara Martin, Beverly Howard, Scott Stephens, Beverly Branch, Jeff
Springer, Will Dutton
MEMBERS John Payne
ABSENT:
OTHERS
PRESENT: City Manager Mike Brice, City Secretary/Asst. City Manager Rose Chavez
1. Call Meeting to Order.
Vice-President Barbara Martin called meeting to order.
2. Approve Minutes: February 23, 2009
Jeff Springer made a motion to accept the minutes as presented. Seconded by
Beverly Branch. Motion carried unanimously.
3. Consider and Approve a Development Agreement Between the City of Sanger and
Eagle Farms, Inc. and Authorize City Manager to Sign the Agreement at Closing on
the Property.
City Manager advised that the development agreement was included in their
packets for review. He prefen the Board authorize him to sign the agreement
between the City of Sanger and Eagle Farms Inc. The conditions of the agreement
are contingent upon the sale and transfer of approximately 40-plus acres situated in
the M. R. Burleson Survey, Abstract 71 and the R. A. Johnson Survey, Abstract 666.
Brief Discussion followed.
Beverly Howard moved to approve the development agreement between the City of
Sanger and Eagle Farms Inc., and authorize the City Manager to sign the
agreement at closing of the property. Seconded by Will Dutton. Motion Carried
unanimously.
4. Discussion of Funding Mechanisms for the new Sports Park and Access Roads.
City Manager presented the Board Memben with some information regarding the
engineer's opinion on the pre-design construction costs for the new Sports Complex.
Ted Christensen with Government Capital Corporation continued by advising the
Board Memben that he has done three bond issues for the City of Sanger and
fmanced several leases for vehicles and equipment.
He proceeded in discussing funding options for the new Sports Park and the access
roads. Mr. Christensen discussed sales tax revenue bonds. He advised that in
today's market these are difficult to sell and the interest rate is sometimes two to
three percent higher. He indicated this is not an option he would recommend for
the Board to consider. The most preferable types of bonds to issue are certificates of
obligation, which are pledged by the taxing authority. The 4B Corporation will then
pledge an amount to the City for their debt service payment. The City of Sanger
and the 4B Corporation will enter into an Interlocal Agreement. This will officially
be on record as a binding document, and by having an agreement on file, it will
prevent any problems and misunderstandings in the future. He discussed a 20 year
bond issue with a private placement. His presentation included a draft document
for a $2 million certificate of obligation bond issue with interest rates at 4.90%.
However, the interest rates could not be locked in at this time due to the 60-day
requirement process. He did advise that prior to the vote to issue the bonds, he can
at that time, lock in the interest rate.
Discussion continued. Mr. Christensen advised if the City and the Corporation
combine their bond issue, then both entities can share the legal cost.
Jeff Springer inquired on the terms of the debt service and the commitment of the
funds by the Board.
Discussion concerning the terms of financing and how much the Board wants to
commit yearly for the debt service. The Board also discussed a 15-year bond debt
of approximately $180,000 and the availability of funds for future projects.
Mr. Christensen indicated the taxpayers of Sanger are the ones who guarantee the
bonds. He advised he will run the numbers for a 15-year debt issuance to
determine the approximate yearly payments.
Vice-President Martin emphasized that we need to make sure we have adequate
parking.
The Board discussed the cost for the following improvements: lighting, sidewalks,
concession stands, and restrooms.
Mr. Christensen indicated that according to the cost estimates prepared by the
engineer, there should be adequate funds for these additional improvements.
S. Project Updates:
a) Streetscape
b) Downtown Park
a) The City Manager advised that Reliable Paving is still working on a couple of
issues but the majority of the work has been completed.
b) City Manager apologized for not getting on the downtown park project;
however, he had most of the City employees working on a special project last
week. He advised this will be accomplished within the next 30 days.
6. Review Financials
City Secretary gave a brief overview of the financials reports, cash money market
account, and the certificate of deposit investment. An overview of the sales tax
revenue was discussed.
a) Discussion and Possible Action on Investments
City Manager discussed that at the last board meeting the Board discussed investing
the funds in a CD ladder. He explained that each month $20,000 would be invested
in a certificate of deposit for a one-year term and at the end of 12 months there
would be $240,000 invested.
Motion was made by Jeff Springer to proceed with investing funds in a CD ladder.
Seconded by Beverly Branch. Motion was carried.
7. Adjournment.
Vice-President Martin adjourned the meeting.