Here is the council packet for Tuesday's council meeting. The meeting will be on Tuesday due to the Monday being a holiday.
There is one major item of interest on the agenda dealing with an outstanding bill the city owes to Branco for the construction of the OC. The city currently owes Branco $395,266.99. The solution being proposed is found ,in part, in Resolution 1642. Res.1642 will establish a repayment schedule with Branco over the next 12 months which will essentially work like a loan. Here are the terms according to Exhibit 'A' of the resolution:
1. An initial installment payment of $150,000 to be paid by Feb 26th.
2. 6% interest will be applied to the remaining $245,267.
3. Payments starting March 1 will be $7,461.50 each month through November 1.
4. A balloon payment of $182,401.02 will be due December 1.
5. "If final payment goes beyond 12/1/2010, the interest rate will change to %1.5 per month as allowed by the State of Missouri".
6. "There will be no penalty for early payment. However interest is to be paid through the time of final payment and no credit for previous interest payments will be allowed against remaining balance".
7. If the balance is re-payed on time, the total interest payed over the life of the loan will be $ 11,749.03.
The second portion of the agreement will determine how we will make the $150,000 installment payment. Emergency Bill 2488 proposes budget amendments to cover this payment as follows:
1. $150,000 will be transfered from the Capital Improvements fund to the Parks/Stormwater Sales Tax Fund (the OC sales tax).
2. There is not an amendment specifying where the $150,000 is originally coming from, so I am assuming it will be taken out of the 2009 carryover balance which currently has about $181,000 in it.
I do not like this at all, but it is what it is. We owe Branco this money. I am just glad to see that the money does not appear to be coming from the street line item of the Capital Improvement fund. Hopefully the sales tax and OC will bring in enough revenue to cover the monthly payments and the final balloon payment in December. I will not support any budget amendments that skim money from our streets and infrastructure projects to subsidize the OC.
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Thanks and Have a Great Day!!
Melissa Wagner
417.231.1045
www.ozarkmissouri.blogspot.com
www.twitter.com/melissadwagner
How does a city get into an agreement when they have no financial reserves to pay there debt upon completion of the project...? I would hope whoever with city staff that recommended this course of action has a serious write up and time off for this type of thinking which puts the taxpayer on the hook.
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