06/06/1994-CC-Minutes-Work SessionR ' ''
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Qn the 4th WHEREAS, delete -Library improvement projects and
insert - General Fund improvements,
On #2). Insert -General Fund improvements and delete - and new
Library Facility. Also, any other changes as staff deems necessary.
Motion carried.
3. Consider and Possible Action Awarding the Keaton Road F.M. 455 to
Duck Creek Road)/Willow Street (Loop 1 38 to Jones Street) Paving &
Drainage Improvement Bid
Discussion.
Councilman Jenkins made the motion to award
Willow Street Paving and Drainage Impro, emen
Construction with the changes made by t:he en
CounGilrx an Bell. Motion carried.
4. Meeting adjourned.
City Secretary
MINUTES: City Council Workshop
June G, 1994
MEMBERS
PRESENT:
OTHERS
PRESENT:
the Keaton Road and
t Bid to XIT Paving &
gineer. Seconded by
Mayor
Mayor Nel Armstrong, Councilman Jack Richardson,
Councilwoman Margie Braxton, Councilman Jerry Jenkins,
Councilman Tommy Kincaid, and Councilman Jae Bell
City Administrator John Hamilton, City Secretary Rosalie
Chavez, Public Works Superintendent Chuck Tucker,
Electric Superintendent Larry Yoast and Glenn Ervin
1. Mayor Armstrong called the meeting to order.
2. Discussion Regarding Capital Improvements Program Financing
Lengthy discussion concerning an alternative for financing for the
proposed street and library projects.
Mayor Armstrong advised that Dan Almon, John and herself had
discussed passing a Resolution with the intention to retire the 1 86
Street Improvement Certificates of Obligations. The funding for this
early payment would be secured through ashort-term loan through
GNB, Sanger's Depositary Bank.
�,-,ut �..' r
:.
Mayor Armstrong further discussed the issuance of the Certificates of
Obligatians for $1,90Q,QC30.
Mayor Armstrong proceeded by stating that the plan involves the early
retirement of the 1986 Certificates of Obligations issued which is
rated Baa by Moody's, would allow the City to proceed with the
issuance of new unrested Certificates of Obligations which would be
fixed at less than 7%, 15 year term in th:e amount of $1,90Q,(J(3Q for
the proposed street and library projects.
Mayor Armstrong continued to state that GNB is willing to work with
the City in any way to possibly help the debt structure of the City's
Capital Improvement Program.
Discussion continued as to the debt service the City would have at the
next fiscal budget year.
The proposed debt schedule far the $1,9�0(},OQQ was discussed at
length.
Mayor Armstrong also stated that Dan Almon has talked to her and
John and has expressed the need for a reserve to be started in the
General Fund.
Staff also recommended that a debt service of $425,QQQ to $450,OQ0
for next fiscal year would not be such a sixain on the funds.
Mayor, Armstrong stated that with this type debt service, the City
could put at;least $5Q,®Ci0 into a Reserve Fund each year and once the
City establishes a Reserve in the General Fund, the City would not have
a problem.'wth getting a rating at Moodys.
Discussion. continued with the priority o f the street projects.
Mayor furthcr'�stated that there was not any way Keaton Road would be
finished this year before school started. 'With this in mind, Keaton
would be started next year, as soon as school was out.
Further discussion continued on the proposed street projects.
Councilman Kincaid's concern was if the City issued these unrested
Certificates of Obligations, can they go back to Moody's and get a rating
to borrow more; where does the City legally stand in this type of
circumstances?
Staff to get an answer from Dan Almon.
Mayor Armstrong also stressed that Dan Almon has stated that once a
Reserve is in the General Fund, there will be no problem with getting
a rating at Moody's.
Consensus of Council to proceed with the passing of the resolution at
the regular scheduled meeting to retire t:he 1986 Certificates of
Obligations and to proceed with the intent to issue Tax Certificates of
Obligation Series 1994 for $1,90Q,QQ0.
Council also instructed staff to advise the bidders that all bids
submitted were rejected.
i+Vorkshop meeting adjourned.
City Secretary