Town of Glen St. Mary 

Florida's Outstanding Rural Community of the Year-2004

February 20, 2018 - Workshop

The Town of Glen St. Mary held a workshop on Tuesday, February 20, 2018 at 6:00 P.M. at the Town Hall with Council Member Davis, Councilman Foster, Council Member Hodges, and Councilman Rhynehardt present. Mayor Juanice Padgett presided over the meeting.


The purpose of the workshop was to inform Council the current sewer project for the North side of Town is short $140,000 in funds. The Town’s engineer, Mr. Tim Norman was present and told Council that based on today’s prices, he feels we got a good price and thinks the Town should complete the full project.


Mayor Padgett handed out packets to show where the Town is with its different accounts. She first discussed the General Operating income statement.  The General Operating account appears to be increasing $20,000 per year plus we have been putting money aside for Capital Improvements.  She then discussed the Water/Sewer income statement.  The cash in bank reflects the payouts for easements.  With the reimbursement of these easement payments, the Water/Sewer increases is approximately $10,000 per year.  She then discussed the Town’s Certificate of Deposits the Town has had since the 2010/2011 fiscal year.


Mayor Padgett and Tim Norman had a brief discussion about how many customers were to be connected as well as capacity fees and tap fees.


She then went over a form we were given by Mr. Norman several years ago regarding equipment replacement. It shows the life expectancy of the different components of the water plant and estimated cost to replace.


She reminded Council the Town chose to do the “Readiness to Proceed” and that it ensured 100 points on our grant application. We have a payment schedule to finish paying the engineer for that service, 4 years at 8,000 per year.


The Town has been budgeting for the debt service since 2005. We transfer monthly to ensure the funds are there when the payment is due.


Mayor Padgett told Council we need to get an additional 25,000 gallons of capacity from the City of Macclenny. This would allow us to service the rest of Town and some development.


Mayor Padgett then went over the four questions on the front page asking how the Council wanted to proceed. Mr. Norman told Council he feels it is in the Town’s best interest to construct the whole project while the contractors are here.


Mayor Padgett then handed out possible loan rates and terms. It has been estimated the Town will have a net income of $10,000 - $12,000 per year with the additional sewer connections.  The Town could put cash ahead to knock down the terms so that it is not more on the annual budget.  Mr. Norman stated he would not recommend an adjustable rate loan.  Mayor Padgett stated she may get rates from other lenders.  Mr. Norman will inquire with Rural Development, but told Council that could result in a lot of studies and such and sometimes it is not worth the headache.  He feels the Town should start construction within a month.


Councilman Foster agreed that the Town should complete the whole project. He liked the middle loan option with the fixed rate.  Council member Davis stated she definitely likes the fixed rate and asked if the Town could pay extra.


Councilman Foster asked Mr. Norman how much it would cost to build your own plant. Mr. Norman replied that it would cost $50 - $100 per gallon.  He added it is tremendously expensive on a per gallon basis that would be very tough for a small community. 


Mayor Padgett told Council she will get more quotes with estimates to pay between 5 and 10 years with a fixed rate that you can pay extra if possible. Mr. Norman pointed out the CD’s aren’t making much interest.


The Capital Improvements account has $60,000 in it right now. Mr. Norman will see about funding.  He will base it on $140,000.00, asking if it can be put against it, to lower it.  He told Mayor Padgett she needs to have funding in place within the next three months.  Mayor Padgett discussed taking the $50,000 CD and $20,000 from Capital Improvements to make up $70,000 and getting a loan on the other $70,000.  Council member Hodges stated she was comfortable pulling half and borrowing half of the money.  Councilman Foster and Council member Davis were also ok with this option.


Mayor Padgett added for informational purposes, the Town previously opted to spend $50,000 to complete the water project on the South part of Town when it was constructed.


Mayor Padgett closed the workshop at 6:53 P.M.
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