The Chelsea Citizens Awareness Committee (CCAC) prepared the following information to distribute to those persons who have asked to receive this information. This information was recorded by a CCAC member and is his or hers understanding of the action taken at this meeting. These are not the official minutes of the meeting.
Call to Order - The City Council Meeting began with an Invocation by the Mayor. Councilman Boone led the Pledge of Allegiance to the United States of America Flag. Council Members are: Allen Boone (Neighborhood), Doug Ingram (Streets & Roads), Jimmy Lovvorn (Beautification & Environmental), Earl Niven Jr. (Fire & Police), John Ritchie (Annexation), and Mayor Earl Niven. Councilmen present: All except for Col. John Ritchie. Approval of Minutes - The minutes from the meeting on April 15, 2003 were accepted.
Committee Reports (Councilmen reporting)
Neighborhood – Councilman Boone will have another neighborhood
Committee Meeting on Tuesday night, May 27th. This meeting will be held at 6:30 p.m. at the current City Hall. If you have neighborhood issues, or would like to help with this committee, you are encouraged to attend.
Beautification and Environmental – Councilman Lovvorn had no report for this meeting.
Streets and Roads – Councilman Ingram reported on the new stop signs placed at the post office and McDonald's. Some people may not have noticed these as yet, so please proceed with caution. Councilman Ingram also thanked the State and County for their clean up efforts on behalf of Chelsea. Mention was also made of the diminishing "Chelsea Used Car Lot" along Highway 280.
Fire and Police – Councilman Niven reported that the transport service for the Fire Department was proving to be an invaluable resource. We have had great results and are very encouraged. The Fire Muster at the Chelsea High School was reported to be a success with representatives from surrounding areas participating. Notice the new C.O.P. vehicle. This has been dressed up a little with new lighting. Strobe lights will be on the front and this vehicle is getting good use. Councilman Niven spoke of the presentation of our C.O.P. program to Indian Springs with Sheriff Chris Curry. This seemed to have been well received. Representatives from Indian Springs will be at the next C.O.P. meeting and they may ride along with a few volunteers to get the feel for this program. Also, Montgomery is going forward with their program.
Annexation – Councilman Ritchie was out of town and there was no presentation made on this subject.
Mayor's Report - The Mayor introduced Attorney Phil Hutchinson, who will represent the City of Chelsea, on the 280 Water Project. The estimated revenue was reviewed with Mr. Hutchinson prior to this meeting and they will meet next week with the bond attorney and the auditor. The Mayor also introduced Matt Parker.
The Chelsea Planning Commission voted to approve the re-zoning of 09-7-35-0-004-004.000 (Randy Greenhill) from AR to R1. This property is off Liberty Road. (See prior meeting notes.) A vote will take place at the next Council Meeting to allow persons to voice their opinion.
The Chelsea Planning Commission voted to recommend a parcel of land situated in Section 7, Township 20, South, Range 1 West from AR to R1. The property is near the intersection of Hwy. 36 and Hwy. 69. This is the property belonging to Neal Shirley (See prior meeting notes.) A vote will take place at the next Council Meeting to allow persons to voice their opinion.
Council Business
Ordinance 03-05-06-218 to approve General Obligation Warrants, Series 2003-A, Dated May 1, 2003. – The rules were suspended unanimously to allow a vote on this Ordinance. Matt Parker spoke on behalf of this Ordinance, which stated approval of this Series A would apply to the 280 Water Project (waterline extension) for $3,200,000. This waterline along the Hwy. 280 corridor will provide water service for various projects, homes and for commercial development. This will be conveyed to Westover Water Authority and they will maintain and operate the system. Persons wishing to come on-line will be required to pay a $1,000 tap fee. The tap fees collected will be conveyed to the City for 15 years. The bond issue will mature May 1, 2020. The principal payment will be deferred until May 1, 2006. The first year's interest will be capitalized and funded in the bond issue, which will be paid semi-annually (11/1/03 and 5/1/04). The average annual payment will be $284,000. The average rate of interest is 3.77% over the life of the loan. The City has bond insurance on these loans which give the bonds an AAA rating and lowered the interest rate for the City of Chelsea. The audited financial statements show financial stability for the City, which was incorporated in 1996. These warrants are first a general obligation of the City with a secondary assignment of sales taxes due the City. They are hoping to receive enough tap fees to keep this from being a burden. Approved Unanimously.
Ordinance 03-05-06-219 to approve General Obligation Warrants, Series 2003-B, Dated May 1, 2003. – The rules were suspended unanimously to allow a vote on this Ordinance. There are two series of warranties because they are two different projects. This Warrant is for $2,080,000 due to mature on May 1, 2018. The annual debt will be $181,000 on average. Principal and interest are not deferred as this will be paid from the city General Fund with Sales and Use Taxes being the major source of revenue ($943,000? Last year??) This is a General Obligation Loan to the City of Chelsea. The average rate of interest on this Series B is 3.59%. The Mayor feels the above are major steps to extend the future of Chelsea. He is looking to the future to provide for the City and Services. He feels there will be a major source of revenue along Hwy. 280. Approved Unanimously.
Ordinance 03-05-06-220 ratifying that we do have a City Sales Tax which will be used to pay general debts for the City. – The rules were suspended unanimously to allow a vote on this Ordinance. Matt Parker spoke on behalf of this Ordinance which states we currently have a Sales & Use tax ordinance to ratify the tax we have in place. This was adopted and amended prior and is now ratifying what is in place. This is a source of revenue for the City. Approved unanimously.
Community Forum
Linda Carter asked if there was an expense on the bond insurance. Matt Parker said yes, it is a percentage of the overall total. This insurance is for catastrophic incident, if the City could not pay for a short period of time, this insurance would guarantee payment. The City of Chelsea is still obligated to pay once they are again able to do so.
Adjournment
Note: The City now has a debt of $3,200,000 + $2,080,000 + existing $1,300,000. When full amortization begins the City will have annual debt service obligations of $590,446. The revenue budget for the 2002-2003 was $1,446,600. No reports on the actual revenue received to date.
Submitted by... Lori Cheney
Chelsea Citizens Awareness Committee
Posted 5/8/2003