HomeMy Public PortalAbout19940720SCMeeting1
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1994- 07 -20. Special Called Council Meeting
Mayor Locklear called the special meeting at to order at 7
P.M. for the purpose of the Water Sewer Bond Issue. The following
members of Council were present: Katrina Hughes, Jack Youmans,
William Remeta, Phil O'Dell, Mariann Wildi, and Paul Jackson.
Mrs. Sallie Hagan the auditor for the City of Tybee was also
present. Pam Rhodes of Oliver, Maner & Grey, Bob Mulcay and Ralph
Bowyer of Dean Whitter were present to present the documents for
the Council to approve and the Mayor to sign. Attorney Krannert
Riddle was present to represent the City on the legal issues.
Mayor Locklear opened the meeting for business legally
presented to Council. Pam Rhodes explained the Defeasance
Resolution stating that this will pay off the 1972 bonds. Mayor
Locklear asked about receiving any money back from the pay off.
Pam Rhodes said approximately $839,00.00 is needed to pay the
bonds. Mr. Bob Mulcay said that there is well over $900,000.00 as
of several months ago in that account. Councilmember Hughes
motioned that the money received should go to General Fund in
order to pay off debts that Water Sewer has borrowed.
Councilmember Remeta seconded. Vote by Council was unanimous.
Councilmember Hughes moved to adopt and accept the
Defeasance Resolution, the Water /Sewer Bond Resolution, and the
Bond Purchase Agreement. Councilmember Youmans seconded the
motion. The vote by Council was unanimous. Ms. Rhodes said that
the Bond Resolution is a guiding document.
Mr. Mulcay said now was the time to consider a rate increase
while construction is taking place. There is a constant increase
of expenditures and the department is run as efficient as humanly
possible. Mr. Mulcay also stated that some citizens agree to a
small increase every year while others prefer an increase every 3
to 5 years. The largest impact should be towards the revenue
makers not the individual home owners. The first payment is due
December 1, 1994. The $195,000.00, part of the sinking fund, but
will earn interest - separate. Take interest earned and transfer
the money from revenue into sinking fund every 6 months. The City
should have an annual planning meeting.
Mayor Locklear asked what would happen if a hurricane hit
Tybee and wiped the island out. Mr. Mulcay said that the City has
approximately 2.9 million in insurance and that the City should
pay its obligations first.
Councilmember Youmans stated that he was chairman of Water
Sewer when talk of a bond issue was first mentioned and he asked
if the City could get money from the sinking fund for maintenance
of the sewer plant. Mr. Mulcay said with this bond issue you can
absolutely transfer money for maintenance.
Mr. Mulcay stated that Nations Bank is the paying agent.
The closing on the Bond Agreement will be at Oliver, Maner
and Grey on August 9th at 10 a.m. A luncheon will follow. Mayor
Locklear adjourned the meeting.