Friday, 09 October 2009
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Sutter Creek Bond Issuance Deferred Pending Gold Rush Decisions PDF Print E-mail
Friday, 09 October 2009
slide3-sutter_creek_bond_issuance_deferred_pending_gold_rush_decisions.pngSutter Creek – Sutter Creek City Council decided to wait until decisions were made on the Gold Rush Ranch & Golf Resort, before issuing bond sales to pay itself back for a sewer system rehabilitation. Bond Attorney Robert Norcross said a bond offer at 5.06 percent expires October 31st, and the offer likely would remain in effect after that date, but interest rate could change. City Manager Rob Duke said the bonds would repay $750,000 spent to purge solid matter from the city’s wastewater treatment plant, which was designed to have 480,000 gallons a day capacity, but began to max out when new business customers in Martell hooked into the system. Duke said a combined effort by the city and the Amador Water Agency, costing a total of $1.5 million will repair the sewer plant, with an expansion creating an estimated 60,000 gallons a day more capacity. The fix was needed because the Martell hook-ups immediately caused the system to be in violation of state law. Duke said repairs “took almost all of the sewer reserves, which are now upside-down.” Norcross said a “reimbursement resolution” passed by the council gives the city “full authority tonight to reimburse” itself with bonds. Councilman Pat Crosby said he is “opposed to debt” and would vote against it, saying the city would be better off tightening its belt. Councilwoman Linda Rianda asked if they would need to raise rates without the bond. Duke said he thought it better to have money in the bank, in case they have fines, which had been threatened at $30,000. He said state threats of fines had stopped because the city was working to stop violations, but quarterly violations continue. Mayor Pro Tem Tim Murphy said they have not done the bond because they do not know what Gold Rush is going to do, but he would not oppose the bond issue, even if it raised rates by a couple dollars. Duke said the city is “ahead of the curve” on maintenance, but has needed money in the bank for emergencies twice in the past 10 years. Finance manager Jeff Gardner said the $750,000 bond would put the city about $400,000 in the positive. Planning Commissioner Mike Kirkley said the city could borrow from its own other reserves and pay itself back at a lower interest rate than the bonds. Murphy said when Gold Rush decisions are made, the bond issuance might be the right thing to do. The council voted 4-1 to decline the offer, with a consensus to put it off a couple of months. Story by Jim Reece This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
 
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