Small Town News

Manchester Creates Public Utility Authority

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The Manchester City Council officially created a Public Utilities Authority at special called meeting last Thursday.

The members of the Council will comprise the membership of the authority. Bruce Burt and Solomon Ferguson were elected to three-year terms.

Mayor Anthony Clifton and Mayor Pro-Tem Travis Ferguson were elected to two-year terms. Patisue Elliott was elected to a one-year term.

Officers of the authority were to be voted on at a special called meeting scheduled before the October Regular Meeting this morning.

Bill Camp of the Morgan Keegan Company presented Council members with copies of the city's debt profile.

Camp proposed a plan whereby the city would sell its revenue-producing water and sewer systems to the Public Utilities Authority at lower than their actual value.

"Just because you sell these systems, it will not change the business models for the revenues," Camp said. "The revenues for those systems pay for your principal and interest payments."

Camp presented a plan in which by selling the systems to an authority, the city could solve its pressing financial problems.

He outlined a plan that would pay off the city's $1 million TAN (which is due December 31), an MDA note of $400,000 (used to refurbish the Goody building), and put $1.2 million working capital in the city's General Fund - all taxable items.

THE PLAN would also pay off the $3.8 million tax-free Series 2008 CPU (Combined Public Utilities) bonds. The remainder of the $6,655,000 total would go to taxable bond issuance cost and gross bond insurance premium.

Camp said the plan would also lower slightly the monthly debt service payments the city makes.

The down side would be that the city will extend its current debt service from eight years to 21 years.

The arrival of landfill revenues, hopefully by next spring, and the sale of the Goody building could also be used to more quickly reduce the debt service.

"My advice is that you do not borrow any money that the water and sewer systems cannot pay for themselves," Camp told the Council. "There is plenty of value in the systems to allow for this and give you some money for the General Fund."

The fact that tax notices will likely be coming out late and that no one is sure when tax revenues will be coming in makes the current financial situation more of a pressure pot.

"This will raise money now and get youthroughoperations,"Camp said. "We structure a transaction that will not increase your debt service over what you are paying now."

City Attorney Jerry Ann Conner was to bring a resolution Monday so that the Council could move forward with the process.

In other business:

The Council voted to replace the 40 windows in the Community Building at the cost of $12,000. City Manager Danny Walton said there is money in the building's account to cover the cost.

The Council voted to approve the intergovernmental agreement with the Meriwether County Board of Commissioners on fuel purchase.

The Council discussed upgrading its cable system the commissioners said that layoffs and furloughs could be forthcoming.

"I hate to do some of the things we're going to have to do," expressed

Commissioner Freddie Hines.

Adding to the problem is that tax notices have not yet been sent and the digest has not been delivered to the state. If taxes are raised, both the commission and Meriwether County Board of Education must hold public hearings and provide proof to the state.

"We are slowly but steadily running out of money," noted Commissioner J.L Whitlock.

THE COUNTY assessed a millage rate of 12.217 mils last year and that same amount was suggested a number of times during the work session. It was said that based on reassessments, a milage rate of 12.217 would generate increased revenue.

Commissioner Frank Buce said, "We have spent $2 million of next year's money already."

Buce was then corrected as it was noted that various special funds have been depleted and the money used for general fund expenditures.

ONE of the special funds was the jail fund. Sheriff Steve Whitlock noted having $180,000 in the jail fund only to discover the fund had been depleted to almost non-existence.

Commissioner Hines learned that a fund to be used for senior citizens had been completely emptied.

< During the work session, it was estimated that an estimated $1 million had been moved from various special funds into the general fund.

DESPITE the financial woes facing Meriwether County, Commissioner Frank Keller was adamantly opposed to any tax increase, even any tax increase provided by the current millage rate.

During the budget discussions, a budget proposed by Keller was noted. Apparently in that budget, Keller arbitrarily cut the public works department by $300,000 and the sheriff's office by $500,000.

Keller was chastised by other members of the commission and audience members.

The stigma of the special funds being raided disturbed some of the commissioners with Buce saying, "We're going to have to take a more proactive role in where the money is going."

No decisions were made, but commissioners did agree to work with the 12.217 mill-age rate and attempt to build a budget around the anticipated revenue based on that rate.



Copyright 2009 The Manchester Star-Mercury, Manchester, Georgia. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from SmallTownPapers, Inc.

© 2010 The Manchester Star-Mercury Manchester, Georgia. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from DAS.

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