City OKs $11.5 million bond issue
BY VICI PAPAJOHN Gulf Breeze News vici@gulfbreezenews.com

In a move designed to consolidate debt, float improvements and repairs and provide budget stability for the coming year, the Gulf Breeze City Council approved an $11.5 million bond issuance.

"In light of tax reform looming large, we are being able to grab a hold of this very good rate. This will accommodate smoothing out cash flow and offer financial security during these rather uncertain times," explained Mayor Lane Gilchrist.

"Included in the $11.5 million is the half million fire truck to replace the old pumper," said Mayor Lane Gilchrist. "but this time we will sell the old one. Customers will repay many of the items funded, like the SSRUS Fire Hydrant replacement project, over time. FEMA still owes around one million dollars, storm water another million and funds are due from the community development block grant for the $300,000 sewer project."

"This bond issuance refinances three loans, a 1998 loan of less than $2 million, the $3 million loan from 2003 and a $5 million Sun Trust loan from 2004," explained Pat Lott, bond counsel, Miller, Canfield, Paddock and Stone. Eddy explained that the latter mostly covered maintenance and repair expenses after Hurricane Ivan, and were variable rate loans.

"Considering the increase in variable rate loans and given the uncertainty of the market in Florida, it is a good time to get this fixed rate," Lott assured.

Responding to City Councilman J.B. Schluter's inquiry about fees, Lott estimated costs at "about $83,000," and bond insurance at another $144,613.

"The legislature is really making it difficult with all this budget uncertainty," Gilchrist lamented.

Residents express concern for 'student workers'

Residents Bert and Dot Jordan appeared before City Council to express concern for numerous 'student workers co-habitating in unfurnished town homes on Russ Dr."

"They are supposedly student workers," Jordan said, "but there are as many as 12 of them together of mixed sexes, with only air mattresses and no furniture. This can't be good for them or for the neighborhood."

Council directed staff to investigate the issue and enforce any codes being sidestepped.

Council anticipates 2008

budget increases

During budget meetings, staff recommended projected total annual revenue for 2008 at $5.4 million, as opposed to $4.8 in 2007. Though projected expenditures for fiscal year 2008 are $5.1 million, the budget is "theoretically balanced" due to a line item for nearly $300,000 carrying forward bond-related payments that will not be due in 2008, but will be needed for anticipated payments in 2009.

"We are not going to ignore the fact that this increase will come about during the second year of this bond. We will have that money set aside, so the money will be there," Eddy explained. The allocation for reserves is designated for debt service. In the first year of the bond, only interest payments are made, but the principal payments begin in the second year.

City Councilman Dick Fulford queried how successful the process had been for the police department to come up with at least 50 percent of their recent pay increase. "I have heard a figure of $80,000 in increased salaries, and so I am looking for the $40,000 savings or increase in revenue."

"I think the accident investigation fee will be the best option there," answered Eddy. "And we have a list of 17 suggestions to go through. It is important to note it is a function of U.S. 98 that our per capita budget is much greater than one would assume for our police department. When a wreck occurs, we get 98 cleared. The fee will help compensate us for the manpower and the time it takes."

Council passed Ordinance 08- 07 Prohibiting Non-conforming use of Reader board Signs, and Ordinance 09-07, Setback Requirements for Swimming Pools in the TH and RC Zones.