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HomeMy WebLinkAbout12-29-2003 Meeting I I I FINANCE & APPROPRIATIONS . COMMITTEE COMMITTEE ROOM - December 29, 2003 2:00 P. M. PRESENT: Hons. Bob Young, Mayor; Shepard, Chairman; Hankerson, Co- Chairman; Bridges and Williams, members; Jim Wall, Attorney; George Kolb, Administrator; E. W. Reece, Chief Tax Assessor; Tom Beck, Recreation Dept. Director; Donna Williams, Asst. Finance Director; Lena Bonner, Clerk of Commission. Also Present: Hon. Boyles, Commissioner. ADDENDUM AGENDA: 1. Discuss the Performance Review ofthe Richmond County Tax Assessors' Office by the Georgia Department of Revenue. (Requested by Mayor Young) Mr. Williams: I so move to add. Mr. Chairman: Second. Motion adopted unanimously. CONSENT AGENDA ITEMS: 1. Consider abatement of 2002 tax balance (Map 134-2, Parcel 99). 2. Approve the extension of buyout lease for existing Caterpillar D6MLGP Tracked Dozer for Public Works Department - Landfill Division from Yancy Brothers of Augusta, Georgia for $3,105.24 per month for 24 months. 6. Consider abatement of penalties and interest on Sandbar Manor for 1997 and 1998 taxes. Mr. Williams: I move that we approve Items 1 and 2 and deny Item 6. Mr. Chairman: Second. Motion adopted unanimously. 3. Extend one temporary mobile home inspector for six months (January 1 - June 30, 2004). Mr. Hankerson: My position is the same as before and 1 think we should wait until the report comes in before taking any action. 1'd like to move that we hold this until we get the report back from the Tax Assessor and the Board of Assessors in responding to the Performance Review report from the state. 1 Mr. Chairman: I'll second it for purposes of discussion. I Mr. Reece: This is to extend this position for six months. Mr. Bridges: I make a substitute motion that we extend one temporary inspector for a period of six months per the department head's request. Mr. Chairman: 1'm going to second the substitute motion. (Vote on substitute motion) Motion approved with Mr. Hankerson voting No. 4. Financial Status Report from the Senior Citizens Council for the month of November,2Q03. At this time Mr. Lawrence Hammond appeared before the Committee and made a report for the month of November, 2003. Mr. Mayor: I see in the documentation that you have received an offer for the building. I think the former City paid for that building with CDBG funds. Mr. Hammond: Yes. I believe the original purchase was a loan along with the money that the Senior Citizens Council took from the bank. The documents that 1've read were a five-year loan that turned to a grant with 20% each year. I Mr. Williams: Was that a forgivable loan? Mr. Hammond: It starts out as a loan and each year 20% of it changes into a grant. Mr. Mays: I think with that loan being that old, it would be a good time to check and see that the it was properly closed out and the regulations were followed. I want to be sure we are safe with the federal government on our side. Also I would like to know if any services are going to change. Mr. Beck: We have been meeting with the Council regarding the transition and we feel confident that services can be restored to the previous level in the summer. We will start the program Monday under our operation. Mr. Bridges: A motion to receive this as information. Mr. Chairman: 1'11 second it and would the maker of the motion include Mr. Mays' suggestion that this be appropriately documented relative to the property and the forgivable loan? Mr. Bridges: I will. I 2 I I I After further discussion, Mr. Mays: If there are services there that are budgeted for, we expect you to provide them and we want to make sure that you understand that. (Representatives indicate their agreement) Motion adopted unanimously. 5. Update from the Administrator regarding the renewal of the ~ontract between ARC and the Coliseum Authority and the refinancing of the Coliselllm Authority's bond indebtedness. Mr. Kolb: We met on December 9 with representatives of the bank regarding the new contract. We provided the Coliseum with an offer and as I understand it, they are preparing a counteroffer for us to consider so we are still in negotiations at this time. Mr. Billy Holden: We just want the same agreement as we had before with the same revenue. We started in May trying to refinance the contract. It was supposed to close out by Labor Day and it came out that we save $500,000 at that time. It drug out and now it's down to $300,000. ' Mr. Kolb: There has been no contract change. We have not negotiated a new contract and I think this discussion is premature. We had one session on December 9 and sent an offer back to them with some conditions attached to it. We cannot live with the contract the way it is written now. I would recommend that you allow us to continue to negotiate so that we can bring back something both parties can live with. When the contract was first approved by the Commission, it was a 3% hotel/motel tax and it was 100% of that amount plus 30% of the alcohol revenue that went to the Coliseum. That was used as collateral to back the bonds. Over the years it has grown and it has grown far beyond what it was at the time that it originally was given to the Coliseum Authority. The state has authorized us to increase the hotel/motel tax to its current level of 6%. They get 50% of the revenue that comes in for the hotel/motel tax as well as the 30 cents alcohol tax. Mr. Holden: Someone in your office told the man with BancAmerica that you were going to give us $1.5 million when we get $2 million right now. Mr. Kolb: We are still negotiating with you. Mr. Holden: We were supposed to have closed this out by September 1. Mr., Wall: There was discussion about a September 1 closing date but there were a lot of documents that were supposed to have been drafted and submitted and I've not seen anything. Mr. Bridges: Does the contract have to be renewed now? 3 Mr. Wall: No. I Mr. Bridges: The only reason that they're trying to get the bond issue is so that they can save some money here. The city is not at any loss to continue the contract as it is; in fact, it saves the taxpayer $300,000 to renew the contract as it is. Mr. 'Wall: It saves the Coliseum Authority $300,000. We're still paying the same dollar amount so they will have more operating cash. So it assists them insofar as their financing. It doesn't affect the, taxpayer one way or the other. Mr. Chairman: We're not saving as much interest. The debt service is more expensive now than it was some months ago. Mr. Bridges: Why don't we just renew the contract? Mr. Kolb: Because there are some flaws in the contract. The current contract talks about 100% of the hotel/motel tax and that clause should be changed. Mr., Mays: When will you make a decision about this and end negotiations? Mr. Kolb: There was no deadline affixed to it. I was waiting for a counterproposal from them which I was told would be within a week and it didn't happen. Mr. Mays: I think there should be some date to set some closure before it continues to dip. I Mr. Bridges: 1'm going to make the motion that we approve the renewing of the contract with the archaic language taken out concerning the 100% hotel/motel money, to bring it up to present day and approve this request for renewing the contract to allow the Civic Center to rebond the indebtedness. I make that in the form of a motion. Mr. Hankerson: Second that motion. Mr. Wall: You have the revised contract with the exception that it still talks about all of the hotel/motel tax when it needs to say that they would get the three cents out the total that's collected. The archaic language that everyone was referring to was that they would get all of the hotel/motel tax. Mr. Mays: This change should have done that a few months ago then. Mr. Wall: I don't disagree with you. The problem with this is that no one on the Coliseum Authority was pushing this to my knowledge because these documents have not been submitted to me. Mr. Chairman: Can we have this at the next meeting of the full body? I 4 I I I Mr. Wall: You can have the contract but the resolution and all the other documents that are being written by their bond counsel. . . Mr. Chairman: 1'm talking about what we're responsible for. Mr. Wall: Sure. Mr. Williams: I want to make a substitute motion to go ahead and approve the Coliseum Authority to go ahead and negotiate the bonds with the savings that we can save and forget about the contract right now. Mr. Wall: No. They need this contract approved with the three cents on the dollar is what they need approved in order for them to move forward with their bond Issue. Mr. Bridges: If! could in my motion take out the term "archaic" and have it recognized that we approve the contract with two changes that it is three cents on the dollar for the hotel/motel tax and that the 1993 City of Augusta no longer exists and that that is corrected. That those two points in the contract are corrected and we approve the contract as is. Mr. Chairman: Are those the only two changes that need to be made? Mr. Wall: It's not in the contract but the other provision that the bank has agreed upon is that there is not a limitation on the call of the bonds and that will be in the resolution that is supposed to be being prepared but 1've not yet seen. This will move it forward so that the resolution can come back. Motion adopted unanimously. Addendum Item 1. Discuss the Performance Review of the Richmond County Tax Assessors' Office by the Georgia Department of Revenue. (Requested by Mayor Young) Mr. Mayor: The agreement from the Revenue Department to do the performance review of the Tax Office was that we would pick up the expenses. The invoice is attached to the report and we would ask you to approve payment of this. Mr. Bridges: That's in the neighborhood of $600. Mr. Kolb: We could look for it in the Assessors budget or take it from Contingency. Mr. Chairman: Let's take it first from the Assessors budget and ifthere is no money there, take it from Contingency. 5 nwm Mr. Bridges: I so move. I Mr. Chairman: Second. Motion adopted unanimously. ADJOURNMENT: There being no further business, the meeting was adjourned. Lena J. Bonner Clerk of Commission I I 6 I FINANCE & APPROPRIATIONS AGENDA COMMITTEE ROOM - December 29,2003 2:00P. M. 1. Consider abatement of2002 tax balance (Map 134-2, Parcel 99). 2. Approv~ the extension of buyout lease for existing Caterpillar D6MLGP Tracked' Dozer for Public Works Department - Landfill Division from Yancy Brothers of Augusta, Georgia for $3,105.24 per month for 24 months. 3. Extend one temporary mobile home inspector for six months (January 1 - June 30, 2004). 4. Financial Status Report from the Senior Citizens Council for the month of November, 2003. 5. Update from the Administrator regarding the renewal of the contract between ARC and the Coliseum Authority and the refinancing of the Coliseum Authority's bond indebtedness. 6. Consider abatement of penalties and interest on Sandbar Manor for 1997 and 1998 taxes. I I