Redevelopment Bonds Move Forward

The Cedar Key Commission, in a special meeting May 29, passed Resolution 285 which provides for issuance of up to $9,200,000 in bonds secured by Redevelopment Agency funds. Also passed was an emergency ordinance that provides property tax relief for elderly low-income home owners.

The bond issue resolution is an early step in an elaborate process whereby property tax money returned to the Cedar Key Redevelopment Agency from Levy County will repay money borrowed (bonds) for various redevelopment projects. The next step is validation of the City's action in a court hearing. Once validated, discussions with lenders will establish the rate of interest, the actual amount borrowed and the schedule of repayment. Repayment must be by the year 2030.

Newly elected Commissioner Gene Hodges repeated questions that he asked at the last Commission meeting, saying that he still had not gotten answers. Hodges was assured by attorney George Smith that only redevelopment money could be used to repay the bonds. Smith is an attorney from the firm Bryant-Miller-Olive, which advises the City on the bond issue. Bryant-Miller-Olive drafted the eight page resolution. Commissioner Sue Colson said that she understands Hodges' concerns, but that bond issue will cover major projects and make life better and have the City grow. The resolution passed four to one with Hodges casting a no vote.

Emergency Ordinance 433 passed on its first and only required reading. The emergency nature resulted from a June 1, 2007 deadline for approval. The ordinance provides a $25,000 homestead exemption, in addition to the standard $25,000 exemption, for all homeowners if a homeowner is 65 or more years old and has an income of no more than $20,000.

During the brief discussion of the ordinance, Commissioner Hodges asked if anyone knew what we are talking about? He referred to the number of people benefiting from the ordinance and how it will affect tax revenue. No one responded to the question. The ordinance passed unanimously.