The purpose of this special Waynesville City Council meeting was to approve ordinance 2267, which was financial in nature.
Present at the meeting were Mayor Luge Hardman, Councilman Sheryl Folkert, Councilman Jerry Brown, Councilman Tim Mann, Councilman Clarence Liberty, Councilman Ed Conley, Councilman Michael Curtis Absent were: Councilman Mike Francis and Councilman Alan Clark.
Special visitors to the council were: managing director Carl Ramey and underwriter Martin Ghafoori from Stifel (brokerage and investment banking firm) and bond attorney Mark Spykerman from Gilmore Bell.
Martin and Ramey have been working with this city since the fall of 2016, when the City of Waynesville first began to have a concept of what they wanted to do as it concerns the bond. Before Stifel got involved, the city had already determined what they wanted to do, what their dollar amount was, and how they wanted to repay the bond. In the spring of 2017, Stifel and theCity of Waynesville began working more closely on the terms and structure of the bond.
Ramey noted that throughout all the transactions, the city maintained a solid A stable credit rating. This means the city has good credit and the interest rates are lower.
Ramey said that this is” extremely good for a city the size of Waynesville and is a compliment to the council and the staff and their ability to manage well for the city of Waynesville.”
Approval of Ordinance 2267, the only item on the agenda, authorizes the City of Waynesville to enter into a lease purchase transaction. The proceeds will be used to pay the cost of certain projects.
What is Ordinance 2267?
It is a financing packet in the amount of 3.4 million dollars put together by the City of Waynesville, Stifel and Gilmore Bell that will finance improvement projects within the City of Waynesville.
ThreeFocus areas of Financing Projects
1. Economic Development
Pad Ready Sites.
Utility support for developmental projects.
Community Improvement District projects.
2. Utility and Infrastructure projects
LED lighting for energy savings.
Auto read meters to help with efficiency.
3. Buy out small water and wastewater systems.
High Point and Northern Heights which are near, but outside the city limits,
Infrastructure to support new systems district.
What does approval of ordinance 2267 mean to the residents of Waynesville?
City Administrator, Bruce Harrill explained the gist of the ordinance to the Daily Guide.
The City of Waynesville is doing a financing project in the amount of 3.4 million dollars which will help with financing several improvements within the city, most of which have a payback source in savings.
The city will also have money to buy water systems outside the city limits. This will help the people in those areas and increase income to the city.
Harrill said, “We are financing at ready sites,and will be reimbursed on the sale of land. We have utility support for sites for the land that is getting improved. We are bringing some of our utilities there and will be reimbursed for their use from the community improvement district. With the LED lighting the city receives payback on energy savings. Most of the financing will go toward water systems, which the city will acquire and run. These systems will pay for itself through user rates.”
Hardman also spoke about ordinance 2267 say the ordinance “is very important to the city and as we move forward and try and make it (Waynesville) the best it can be, these are some projects that should be done. Our streets need so much improvement and here is a chance for us to get caught up. It’s a very good move for the city. The projects will pay for themselves.”
Curtis said, “ Many times you don't see the infrastructure (sewer, water, electricity) and here we are investing in the infrastructure. The only time we see these things is when they don’t work.”
In closing Hardman said, “We are very excited about this (the financing projects) and I think the people of Waynesville will be thrilled we are investing in the infrastructure. As mayor, I want to leave Waynesville in better shape than I found it. We should as mayors work to leave the city better than we found it. This financing package is a huge step for us.”