CITY OF PINE LAKE
FEBRUARY 28, 2011
CALLED COUNCIL MEETING
Mayor Greg Zarus
Mayor Pro-Tem Kathie deNobriga
Council Member Greg Creech
Council Member Bitsy Pitts
Council Member Cindy Diamond
Council Member Melanie Hammet
City Clerk Valerie Caldwell
Public Works Director Phil Howland
This meeting, having been duly posted and proper notification being made to the legal organ, was called to order at 5:00 PM.
The purpose of this meeting was to review the status of capital projects from which funding was provided by the bond. This meeting was conducted as a work session with open dialogue between elected officials and staff.
Mayor Zarus chronicled the steps leading up to securing the bond, for the purpose of providing cash flow and funding capital projects as outlined in the bond documents. He reported how it was originally to be set up as a Tax Allocation District (TAD) but due to a delay in receiving the annual audit, and a change in the law, TADs were discontinued. In lieu of a TAD, a Revenue Bond was approved. He also reported capital project expenditures were made in 2008, which were eligible expenditures for the bond, however the bond was not issued until 2009. Once the bond had been issued, a draw down request was submitted, however not all of the expenditures were reimbursed. The net result was general operating expenses were initially utilized for bond related capital improvement projects.
Spread sheets were presented on the various bond draw downs, and how funding was applied to the various capital improvement projects. Mr. Howland reported that although two 319(h) projects were undertaken, grant funds had been available to offset a portion of the costs of one project; The second 319(h) project (Western Wetlands) was completely funded by the bond. Mayor and Council were surprised by this revelation and Council Member Creech told Mr. Howland that he was disappointed that the city did not use grants and other funding for the Western Wetlands, as he had believed had been done. Council Member Diamond also stated she believed grant funding had been utilized for the project, and the remainder of the Council members concurred.
Mr. Howland also pointed out that approximately $39,000 had been taken out of the bond for drawings and plans for the GEFA ARRA loan; however the City was not successful in securing that funding. Those drawings and plans were utilized in the successful application of the GEFA SRF project for the lake dredging.
In further discussion of funding of the lake dredging project, Mr. Howland stated that he projected only borrowing 1.2 to 1.4m in GEFA funds. He stated he was anticipating $810,000 from DeKalb County as grant money. The Clerk stated she was under the impression that the $810,000 was to be utilized as collateral for the GEFA loan. Mr. Howland explained that it was a reimbursement for the environmental projects; however the City had a 10% match on a $900,000 grant from the County, and $90,000 of the $810,000 was being applied as the City match. As such, the amount of the GEFA loan would need to be reduced accordingly.
Council Member Diamond questioned the budget to actual figures on the Trail Project as well as the Wetland projects. Mayor Pro-Tem deNobriga requested that Mr. Howland prepare a list of projects and for each project to designate the funding source and amount, and the expenditures for the project.
The meeting adjourned at 7:24 pm.
Valerie Caldwell, City Clerk