09-08-49SpMtg264
SF:,PTEaXlBER 8TH, 1949
A Special Meeting of the City Council,~ ~ogether with the Golf
Committee, was held in the Council Chambers at 7:30 p. m. with
Mayor J. L. Saunders in the Chair, and City Attorney ~ohn Moore,
City Manager Charles E. B,~ck, and the Following Coun6ilmen present:
L. H. Brannon, John N. Kabler, Neil E. MacMillan, and Walter A. Roth,
a quorum being present.
Mr. C. Y. Byrd was also present, in the interest of the Gol~
Committee, ~o stated that he had gone over the new nine holes on
the golf course with Mr. Mike Blank, who has been in charge of the
construction work on the golf course extension, and he felt that
wonderFal progress had been made. He had then looked into the
possibility of Financing a project For the completion of the work
on the Course, and had found that a project For any kind of ~xnic-
ipal benefit, From which there is some source of revenue, could be
financed by the issuance and sale of Revenue Certificates, with-
out a referendum election, and he offered his assistance to the
City Attorney and the Golf Committee in working out s, lch a scheme.
He suggested the issuance of ten year certificates, at possibly 4%
interest, to be payable s~rially, annually, which could be sold at
a discount to provide imm~iate funds, if necessary.
Mr. C. J. Manson, Chairman of the Membership Drive Committee
of the Chamber of Commerce, reported that his Committee had raised
approximately $ 6,300.00, and he Felt they could raise $ 6,000.00
more, that the more memberships sold the less Revenue Certificates
would have to be issued, although the income From the Golf Course
would be materially affected For the next two years.
Mr. Blank estimated the total cost of the extension to the
Golf Course to be ~ 54,000.00 complete, of which amount ~ 8,800.00
has already been paid by the membership drive and by an appropriat-
ion of ~ 2,500.00 by the City Council. The installation of sprinkler
system he estimated could cost $ 27,558.00 if steel pipe is ,~sed, and.
~ 25,055.00 if transit is used, including labor and hose. He stat-
ed that the Fairways had been heavily covered with muck, whlch was
available on the premises, and which saved about'~ 25,000.00 in
cost of top soil, and that he was now ready For grassing, with the
exception of a portion of two holes. As soon as the grassing ~
started it will be necessary to have water. He estimated the cost
For completion of the construction work would be approzimately
~ 21,000.00, or a total, including sprinkler system, of ~ 45,000.00.
lie believed that upon completion of the new nine holes the revenue
from the Golf Course would be more than doubled, and the mainte-
nance would probably be about one-third more.
Mr. Byrd stated that based on a statement of revenue and ex-
pense at the Golf Course o~r the past Four years, this income
would have to be subsidized with some other Fixed revenue in order ,
to issue and sell Hevenue Certificates. He suggested that as m,~ch
of the Franchise tax paid annually by the Florida Power & Light
Co., or any other Fixed revenue From a source within control of the
Council, be pledged to retire such Certificates, which he felt
would make them immediately marketable and in demand. This would
not affect the budget For the next Fiscal year, as the First pay-
ment would probably hot be due before January 1st, 1951. Receipts
From the Golf Course can eventually be increased to carry the loan.
SEPTENBEit 8I'H, 1949
Mr. C. J. Hanson expressed his belief that the First National
Bank would be interested in taking the Revenue Certificates if
legally issued, by pledging ~ 5,000.00, or whatever amo~mt would be
required, a year From tile franchise tax or some other fixed revenue.
A motion was then made by Councilman Brannon, seconded by Council-
man Kabler, that the City attorney, the Attorney for the Bank, and Hr.
C. Y. Byrd, be authorized to draw up such Ordinance as necessary to
enable the City to Finance the completion of the Golf Course, not to
excees ~ 48,000.00, to be based upon a pledge of franchise tax, if
revenue from the Golf Course is not sufficient, to such extent as
necessary to guarntee the payment of Revenue Certificates over a
period of ten years. Upon call of roll the motion carried unanimously.
City Hanager Black then stated that Nr. Blank could no
[u~t~ll the sprinkler system as cheaply as anyone, but under the City
Charter an opportunii,z fo~- competitive bidding must be given, and he
Felt that on a contract of this size many bids mi~ht be received.
Upon motion of Councilman Kabler, seconded b- Councilman Brannon,
the City Hanager, with the advice of the City Attorney, was instructed
to prepare specifications for the installation of a water system for
the extension of the Golf Course, and to advertise for bids to be
received at the earliest possible moment, for pipe and materials, and
installation of the system. The foregoing motion was carried
ously upon call of roll.
Hr. ~dward A. Ochellenberg, Chairman of tlle Chamber of Commerce
Advertision Cor~nittee, offered to assist the Council by assuming the
payment of interest on the proposed Revenue Certificates out of the
Advertision ~'und being appropriated by the Uity, as they felt the
Beach and the ~olf Course were the best "ADDS" the City has.
It was tentatively agreed by the Council that if Fir. B~.ank is
low bidder on the installation of the water system, he will be allow-
ed to use steel pipe which the City has on hand, to be replaced for
City use, in order to start the installation at once, as water will
.be needed as soon as tl~e grassing is started, which Hr. Bbnk is ready
to do immediately.
City Hanager ~lack advised the Council that a Sinking Fund of
~ 10,000.@0 to provide for deficit incurred this year, had been set
u.p inn the, pronosed, budget, providing_ , 13. mills is. ap;~po¥,-'r~ e,-.~, o,p~
lng ,.nd maintenance, 2 mills for~ special bene,f~ts~ and '~-mills ~or
debt service. 1F 15 mills is set up for operation and maintenance,
and the 2 mill levy for special benefits eliminated, about $ 7,500.00
in revenue will be lost.
City Attorney Moore then stated that a "Special Benefit" levy
will not stand up if contested in Court.
Councilman MacHillan agreed with the CiZy Attorney, that a
Special Benefit levy would be illegal, although Councilman Brannon
stated he was in Favor of it l~;st year, and he was still in favor
it this year, anti as a lawyer he considered it perfectly legal.
Councilman Kabler considered it a benefit, to the City, and
urged the Council to continue this 2 mills for certain items, ~mtil
contested and found to be illegal by the Court'~
SEPTEMBEII 8TII, 1949
The proposed budget was carefully considered by the Council,
and the following reductions were recommended, $o offset the loss
of $ 7,590.00 by eliminating tl~e 2 mill levy for Special Benefits:
MayOr and Council - Reduced by ~ 1,195.00, as Charter pro-
vid£ng for salaries for Councilmen is not
yet in effect.
Swimming Pool Reduced ~y 500. O0
Storm Drains " 500.00
Municipal Bldgs. " " 1000.00
Recreation (W) " " 600.00
'. (C) " " 500.00
Adver ti sing " " 2500.00
Shop & Garage " " 260.00
City Attorney " " 500.00 ~ 7,555.00
Councilman Kabler then reconu, ended that 2 mills for Special
Benefits be left in the budget, and Golf Course maintenance be
increased by the above amount, making $ 27,500.00 set up for the
Golf Course.
After further disc.ussion, a motion was made by Councilman
Brannon, seconded by Councilman Kabler, that the proposed budget be
approved with the adjustments as outlined above, with an allowance
of ~ 7,500.00 being added for the maintenance of the Golf Course, and
that the millage be set at 13 mills for operating expenses, 2 mills
for special benefits, and 6 mills for debt service, a total of 21
mills. Upon call of roll the motion lost, Councilmen Brannon and
Kabler voting in favor of the motion, and Councilmen MacMillan,
doth and Saunders opposing.
Councilman MacMillan explained his vote by stating that he
could not approve of a millage for special benefits on the basis of
the City Attorney's opinion, and he also felt the advertising item
was excessive.
Councilman Roth stated that he could not a¢prove of the Special
Benefit millage as the City Attorney had ruled it was illegal.
Councilman Brannon, however, felt that in this way the Council
could get the cooperation of the Chamber of Commerce and the Golf
Committee, two important items.
Another motion was then m~d,e by Co,~neilman. Brannon that the
budget bb approved without the increase of ~ 7,500.00 for the Golf
Course, and that the millage be set at 21 mills, eliminatin~ the
millage for special benefits, or 15 mills for operating a, nd maint-
enance, and 6 mills for debt service. The motion was seconded by
Councilman Kabler, and upon call of roll carried, Councilmen Brannon,
Kt~bler, Roth and Saunders voting in favor of the motion, and Council-
man MacMillan opposing, stating he did not a~prove of the item of
~ 10,000.00 for advertising.
Upon advise of the City Attorney that the City Charter provides
that the budget must be adopted and tho millage set on the second
Monday in September, a Special Meetinz was schednled to be held at
6:30 P. M. on Monday, Septemeber 12th, to officially approve tile
action taken at this meetin~o
267
SEP~LNth~i{ 8Tlls 1949
A telegram received from the Florida League of Municipalities,
urging City officials to contact their Senator and Representatives
S '
with reference to obtaining financial aid during this Special easslon
of the Legislature, was rea,t, and upon motion of Councilman Brt~nnon,
seconded by Co~neilmna ~oth, unanimously carried, the following Reso-
lution was adopted, copies to be mailed to our Representatives and
Senator in Tallahassee:
-Cit~ Clerk ~ - '
ATTISST:
Mayr~ /