HomeMy WebLinkAbout03-25-14Minutes of the Town Council meeting held March 25, 2014 at 6:00 p.m. in the Council Chambers of the
Municipal Building at 42 First Street, NW, Pulaski, Virginia.
Present were: Jeffrey S. Worrell, Mayor
Council: Heather L. Steele, Gregory C. East, David L. Clark, H. M. Kidd, Joseph K. Goodman,
James A. Radcliffe
Staff: Shawn Utt, Town Manager
Patricia Cruise, Clerk of Council
David Quesenberry, Assistant to the Town Manager
Bill Pedigo, Town Engineer
Pam Witten, Finance Director
Others: Sandy Payne Clark Payne Charles L. Wade
Ron Hall Nick Glenn Courtney Rogers
Calvin Pynn, Press
Mayor Worrell called the meeting to order at 6:00 p.m.
Following roll call, Mayor Worrell welcomed the audience to the meeting.
The first item on the agenda was a Public Hearing for VRA/VDH bond for Water Treatment Plant upgrades.
Mr. Utt advised that the Public Hearing and approval of the Resolution was the last step necessary to proceed
with the closing of the loan for the Water Treatment Plant upgrades. He noted that the hearing had been
advertised as require by the Code of Virginia.
Mayor Worrell opened the Public Hearing at 6:01 p.m.
Charles Wade inquired what the impact on the water and sewer bill would be? Additionally, he asked when the
impact would occur.
Mr. Utt responded that the current budget had the debt service included in the water fund expenses. He added
that the problem with the current budget was that it was in the red with current revenues. He noted that the
Town was retiring some debt, so there would not be much impact to the water and sewer bills.
Mr. Wade commented that the study indicated a 4% increase. He asked if that was true.
Mr. Utt responded that was a recommendation, but nothing had been decided.
Mayor Worrell interjected that he did not expect that decision to be made at this meeting.
There being no other speakers, Mayor Worrell closed the Public Hearing at 6:05 p.m.
Councilman Clark moved to adopt Resolution 2014 -14, Authorizing The Issuance And Sale of A General
Obligation And Water And Sewer Revenue Bond /n An Amount Not to Exceed $2, 487, 968 Of The Town Of
Pulaski And Providing For The Form, Details And Payment Of The Bond. Councilman Kidd seconded the
motion and carried on the following recorded vote:
Heather L. Steele -Aye H. M. Kidd -Aye
Gregory C. East -Aye Joseph K. Goodman -Aye
David L. Clark -Aye James A. Radcliffe -Aye
March 25, 2014/Page 1 of ~ot
Mayor Worrell moved on to Presentations.
The first item for discussion was Refinancing of Series 2005 General Obligation Bond (James Hardie related
debt).
Mr. Utt advised that based on Council's action to move forward with the BB&T proposal, staff drew up a
Resolution for adoption. He added that the authorizing resolution for this issuance which was not to exceed
$2,750,000, reduced the rate to 1.81%, did not lengthen the overall term and would still be retired in 2020. He
Councilman Clark moved to approve Resolution 2014-15, Authorizing The Issuance, And Providing For The
Sale And Award, Of A General Obligation Refunding Bond Of The Town of Pulaski In A Principal Amount Not
To Exceed $2, 750, 000, Providing For The Form, Details And Payment Of The Bond, The Refunding Of A
Certain Prior Bond And Authorizing Certain Related Actions. Councilman Kidd seconded the motion and
carried on the following recorded vote:
Heather L. Steele -Aye
Gregory C. East -Aye
David L. Clark -Aye
H. M. Kidd -Aye
Joseph K. Goodman -Aye
James A. Radcliffe -Aye
The next item for consideration was Davenport & Company -Utility Fund Strategy.
Mayor Worrell introduced Courtney Rogers of Davenport and Company to address Council with a Utility Fund
Strategy.
Mr. Rogers gave a presentation on the utility funding models that the Town has used in the past as well as
recommendations for future models that will provide for a positive cash flow and the anticipated development
of a capital fund for each utility. He noted that the long term plan would be to have the utility system self-
supporting and not reliant on the general fund.
Mayor Worrell asked Mr. Utt for the timeline for a Public Hearing on this issue?
Mr. Utt responded that the latest Public Hearing would be needed mid-May.
Mayor Worrell asked Mr. Rogers if he was suggesting that Council adopt five years of rates at one time?
Mr. Rogers responded that was one possibility. He noted that Council always had the option of making a
change at any time.
Following discussion, Mayor Worrell thanked Mr. Rogers for his presentation.
There being no further business, the meeting adjourned at 6:35 p.m. on motion by Councilman Goodman,
seconded by Councilman Kidd and carried on voice vote.
Approved:
,~~ ey S. Worrell, Mayor
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