11-19-1975 - Special
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CITY COUNCIL OF THE CITY OF EDGEWATER, FLORIDA
SPECIAL MEETING HELD
NOVEMBER 19, 1975
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meeting of the City Council
November 19,1975 at 1:30 P.M.
Mayor Armstrong called the special
of the City of Edgewater to order,
ROLL CALL:
Mayor Dana T. Armstrong
Councilwoman Ryta F. Webber
Councilman William H. Cairnie
Councilman Walter B. Sikes
Councilman Calvin R. Dietz
City Manager N. Dale Bryant
City Attorney Joseph E. Weaver
City Clerk Sue Blackwell
Acting Chief Norman Mc Call
Present
Present
Present
Present
Present
Present
Absent
Present
Present
Mayor Armstrong turned over the floor to Mr. Bryant for his
introductions.
City Manager Bryant introduced Mr. Fedderman from the Washington
office, Farmers Home Administration, and Mr. Eldridge from the
office in Gainesville. He explained that the purpose of this
meeting is to clarify the City's position as to their desires
to proceed with the water and sewer expansion program and to
include in the program an additional $200,000.00 loan, which
the City needs to cover the bids which have been received.
Mr. Eldridge spoke to the Council. He stated that there is
$200,000.00 available for the loan. He stated that the loan
at present is $700,000.00, and the City seems to be in good
financial condition, the rates did not have to be raised for
this amount, however the additional amount make make a difference,
this will have to be found out by the City's auditors.
Mr. Eldridge passed out copies of his reports so that the Council
could follow along with him as he went over them. He began going
over the details on the reports...
Councilman Sikes asked as the money is advanced during the year
for the construction work, are we going to be charged interest
on the money that is spent on the project, or once we enter into
the loan would we be charged interest for the full $900,000.00~
Mr. Eldridge stated that this is going to be financed through a
bank, and the money will be used for construction as needed and
you will withdraw the money when needed. Mr. Eldridge went into
more detail in regard to this.
Councilwoman Webber asked if Bhe understood that we would be
paying interest only on the unpaid balance or on the whole amount?
Mr. Eldridge stated that this could be done one of two ways, you
can borrow the whole lump sum, or we recommend that you borrow
as needed and pay interest only on that which you borrow.
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Councilman Sikes asked Mr. Eldridge if he believes that there
is no reason, under these new rates set out by our auditors,
up until 1979, that there will be no problem as far as taking
care of the old obligation plus the new loan?
Mr. Eldridge stated that this is their opinion, however the
increasing costs can not be forecast, once this is in full
operation and you see how you stand, you may have to raise
your rates again.
Councilman Sikes asked if there was any problems that you
could see that the loan could not be paid, you would not
consider loaning us this amount?
Mr. Eldridge stated that we have to feel like it is feasible
before we can loan any money.
Councilman Cairnie asked if the figures are based on the
growth of the City?
Mr. Eldridge stated that they could not do that, the figures
are based on the actual number of users that you now have.
Mayor Armstrong spoke to Mr. Eldridge about this, and he
stated that we want to be sure that our figures will stand
up and that we will be able to handle the loan.
Mr. Eldridge stated that this does not include any growth
for the City in these years, and they are suggesting that
the City not raise the rates any higher than necessary.
Councilman Cairnie asked why it is that other Cities can get
Federal money as matching funds for their water and sewer
plants, and we have to borrow the whole amount and pay it all
back?
Mr. Eldridge stated that this town is not eligible for a grant
because a grant can be made only when the rates are higher
than the average in the area, and Edgewater's rates are lower
than most of the Cities in the area.
Councilman Cairnie stated that it is in the County's plans,
Edgewater's sewer plant will be elliminated, and what will
happen to all of this when we have to go to the County?
Mr. Eldridge said that he could not answer this question,
however he feels that provisions would have to be made for
the loan to be paid in full, which would probably be the
County's responsibility.
Councilman Sikes asked if it is true that the money used to
finance this project would not in anyway have anything to do
with increasing the taxes?
Mr. Eldridge stated that this is true, it will come from the
money made off of the water and sewer program.
There were several questions asked from the audience about
the taxes being involved by this.
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Councilwoman Webber asked Mr. Eldridge in the event that we do
not do this this year, how long will the 5% interest be in effect?
Mr. Eldridge stated that this interest rate was set by Congress
and was set about ten years, and it would have to be changed by
Congress and we dont foresee that.
Councilman Sikes asked if we delay this project for another year,
as far as the loan, we still have a 5% loan, but what is it going
to do to the contract bids.
Mr. Eldridge stated that this is a matter of speculation, bids
on the sewer plant may tend to be a little lower, however the
water is going way up. He also stated that this is entirely
up to the City, and what they decide to do is strictly up to
the City.
Mayor Armstrong thanked Mr. Eldridge for presenting this to us,
and he further stated that he still would like some other details
explained a little more.
Mr. Eldridge stated that he would be glad to go over anything
with anyone who does not understand. He went over the
seperate form sheets, and the different requirements to be
met by the City, answering questions as they were asked about
each form.
The City Clerk explained that something happened to the tape
recorder and some of the discussionwith Mr. Eldridge on the
forms will not be picked up on the tape.
Mr. Taylor asked if this Council would pass this matter if
they knew that the people don't want it, and is there any other
way of finding out truely, or a referendum could be held?
Mayor Armstrong stated that this is going to require some
of the Council to do their homework and decide what is most
f~asible and of the best interest of the people of Edgewater.
Several other questions from the audience were answered.
ADJOURNMENT:
Councilman Cairnie made a motion to adjourn, being seconded
by Councilman Dietz. Upon roll call vote said motion CARRIED.
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Mayor
ATTEST:
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Counc ilman ! { /
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Approved thi s 1/ day of
December, A.D. 1975.
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