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Minutes - 02/22/2011City Council Meetings of February 2011 Book "V° MINUTES FROM THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 22ND DAY OF FEBRUARY 2011, IN THE CITY HALL, LOCATED AT 1212 AVENUE M IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS AT 6PM. • The Council met in a regular session with the following: COUNCILMEMBERS PRESENT: J. Turner, Tom Cole, Mac Woodward, Jack Wagamon, Wayne Barrett, James Fitch, Lydia Montgomery, Don H. Johnson, Keith D. Olson COUNCILMEMBERS ABSENT: None OFFICERS PRESENT: Bill Baine, City Manager, Lee Woodward, City Secretary SPECIAL SESSION' [6:00PM] 1. CALL TO ORDER Mayor Turner called the meeting to order at 6:00pm. 2. PLEDGES OF ALLEGIANCE AND INVOCATION Councilmember Barrett gave the invocation. 3. STATUTORY AGENDA a. Presentation, discussion, and possible action to approve Ordinance 2011 -24, repealing Ordinance 2011 -09, an Ordinance authorizing the Issuance of City of Huntsville, Texas Waterworks and Sewer System Revenue Refunding Bonds, Series 2011; authorizing the pledge of certain revenues in support of the Bonds; approving an official statement; authorizing execution of a Paying Agent(Registrar Agreement, a Bond Purchase Agreement, and an Escrow Agreement; establishing procedures for selling and delivering the Bonds; and authorizing other matters relating to the Bonds (two readings not required, per Section 1201.028 of the Texas Government Code). [Winston Duke, Finance Director] Councilmember Woodward made a motion to approve Ordinance 2011 -24. Councilmember Fitch seconded the motion. Councilmember Woodward said the Finance Committee had reviewed the Ordinance, and that it was the same bond that had already approved, but that the threshold had been set a little higher than can what they thought they could get now. He said the feeling was that this needed to be done now in view of trends in the market. • Winston Duke, Finance Director, said it was a 20 -year bond with a 10 -year term, a refunding loss of ten years. He said it was a wastewater issue with Robinson Creek. Mr. Duke said the City was looking at 5 3A, or $329.000, that it had been 60/6 above, and at 50/6 right now, a savings of $286,000, with the market now going the other way. He said the City's investment advisor recommended approving 3.5% and were an)dous to proceed. The motion passed unanimously. 4. WORK SESSION [to Immediately follow Special Session — will be held In Conference Room] 1. CALL TO ORDER The Mayor called the session to order at 6:10 p.m. 2. DISCUSSIOWCONSIDERATION a. Discussion and review of preliminary water rate study. The Council reviewed scenarios to consider potential changes to the water rates. There was general consensus that a gradual increase for the projected amount required would be preferable to sharp increases only when absolutely required, and that an eight year plan had more support than longer propositions. is 3. ADJOURNMENT The session was adjourned at 7.22 p.m.