Sitting first as the Community Redevelopment Agency (CRA) board and later as the City Commission, issues related to a $9,200,000 bond sale dominated the two meetings. Five banks offered to finance CRA projects with loans up to $9,200,000 for 20 years. The bonds are to be retired using future income from real estate tax money passed on from Levy County to Cedar Key. The repayment schedule indicates $680,000 per year payment on principle each year and $4,300,000 in interest over 20 years 
Commissioner Hodges listening to details of the bond issue.
|
The CRA financial advisor recommended SunTrust, which bid 3.95 percent interest with various stipulations regarding early pay-off of the loan. Commissioner Gene Hodges asked immediately if there is certainty that the bank could not go after the City if the CRA defaulted on the loan. In succession, first Robert Freeman, who advises the CRA on bonding matters assured Mr. Hodges that a court decision in August 2007 would protect the City from future court action against the City in case of a default. Second, Scott Ricker, from SunTrust, offered reassurance to Hodges, but did not answer the question directly. Commissioner Hodges directed his questions at the need for the full $9,200,000. "Can we get less? It looks like no end to the spending." Commissioner Sue Colson responded with vigor, saying, "We are not going back to the drawing board now." She added that many people's input and many hours of planning had gone into the proposed use of the funds. At that point the expected expenditures over four years were shown in a chart. Hodges immediately challenged the need for a $150,000 fire/rescue boat. He did not question the need for paving, but wondered about purchase of more properties, citing the $300,000 lot next to the City Library. Doris Hellermann, a member of the Chamber of Commerce, said that the City is killing business, yet there is no cut in taxes. (The CRA is predicated on development increasing the tax base and therefore increase tax revenue.) 
Commissioner Colson defending budget plans.
|
The Commission ended the meeting by passing a resolution to go forward with the CRA Revenue Notes. The vote was four to one, with Commissioner Hodges voting against the motion. In other business, the CRA board voted to hire Taylor Construction Company to rebuild the first forty feet of the boat launch ramp. The contract is for $68,600. The work will be paid for from a $133,000 grant from the State of Florida. Commissioner Hodges, referring to a hole at the end of the ramp, suggested that some of the additional money be used to fix the hole. |
