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HomeMy WebLinkAbout1974-12-16 (special called)Called Meeting Euless City Council December 16, 1974 CALL TO ORDER The called meeting of the Euless City Council was called to order by Councilman Harold Copher in the Conference Room of Euless City Hall at 2:30 P.M. Members present were Mrs. Willie Mae McCormick, Messrs. Wayne Wright and Ray Ozebek. Mayor Krause arrived at 2:45 P.M. (Absent: Mr. Harold-Samuels) Also present were Interim City-Manager W. M. Sustaire and City Secretary Della Houy. VISITORS Visitors present were as fol lows: Messrs. Mike Ashford, Frank Medanich, and Don Harris, represeriting•the Fort Worth Star Telegram. TRINITY RIVER PUTT -DRILY BONDS - SERIES 1975 Mr. Copher recognized Mr. Frank Medanich who stated he represented the Trinity River Authority and also the Cities of Euless ;and, Bedford in the issuance of bonds for water production. Mr. Medanich stated that when the bonds were sold in 1972, the bonds were on a short term agreement; and at this time, Trinity River Authority is at the point of completion and -is requesting refund- ing and reconstruction of the bonds. He further stated that after the water and sewer rate increase in July, 1974, that the revenue is sufficient to give the Cities a better bond rating. Mr. Copher stated that Euless has had two (2) bad years for water usage; in 1973, the City had a lot of rain,' and in .1974, when the summer was dry, the City ran out of water. Mr. Medanich stated that the present bonds are term bonds due in the year 2000, and Trinity River Authority would like to reduce and serialize the bonds to be due in a twenty five (25) year period, with a percentage rate,of between 7% and 7.90%. In reply to a question from Mr. Copher, Mr. Medanich stated that he would attempt to get an "A" rating, but it may be a "BAA" or "BAA1 "; that he would :present all of his-information to the rating services and then put together a "notice of sale" on the bonds. 18A- (Page Two, Called Meeting Euless City Council, December 16, 1974) In reply to a question from Mr. Copher, Mr. Medanich stated that each City is rated on its own revenues and expend - itures. Mr. Medanich suggested the City set up a reserve fund in the amount of their percentage rate of $380,000.00 by borrow- ing the money or accruing over a six (6) year period, and paying Trinity River Authority more each year until the,pQrtion is paid. Mr. Medanich presented members of the Council with a break down of their proposed refunding bonds (Series 1975), projected income and expenses of water works and sewer systems, estimated annual cost allocations, and Euless and Bedford Water Works and Sewer Systems Operating Statements. Mr. Medanich stated Trinity River Authority recommends that they be authorized to ask for competitive bids with a ten (10) year option and after a ten year period to decline to par in fifteen (15) years; that under law, after five (5) years, refunding can be done by escrowing funds and reissuing the bonds; that this money in the reserve fund would earn interest. He further stated that after five (5) years, after the bond market is better, this refunding can be used to pay the bonds off in ten years; that the City would not be locked into this percentage rate forever. Mr. Medanich advised the Council not to take the percentage of the $380,000.00 out of their operating fund, but to include it in the Series 1975 Bond. Mr. Medanich stated that Trinity River Authority requests the Council's decision before their meeting to be held on January 22, 1975. In reply to a question from the Council, Mr. Medanich stated that at this time, 'Euless' portion of the bond issues was approximately sixty two percent; that this was based on the number of water and sewer customers and total usage of the Cities of Euless and Bedford; and, that if Bedford population grows faster than Euless, the percentage that Euless would be paying would be reduced. Mr. Medanich stated that there would be a rating hearing in New York and he would attend this meeting and speak on behalf of Euless. Mayor Krause asked to be advised of the meeting in New York, as he would like to attend. Mr. Sustaire stated that he would- concur with the recommendation made by Mr. Medanich. (Page Three, Called Meeting Euless City Council, December 16, 197'1" Mr. Copher moved to concur with the City Manager and recommend the Council allow Trinity River Authority to advertise for competitive bids and to include the reserve fund requirement as noted in Schedule "B ", attached. Mr. Wright seconded the motion and the vote is as follows: Ayes: Messrs. Copher, Wright, Ozebek, and Mrs. McCormick Nays: None Mayor Krause declared the motion carried, Mayor Krause stated this meeting is recessed until Wednesday night, December 18, 1974, at 6:1+5 P.M, APPROVED: /s/ A. C. Krause Mayor ATTEST: /s/ Della Houy City Secretary 186