Robertsdale mayor fields questions about debt

By John Underwood / john@gulfcoastmedia.com
Posted 8/24/16

ROBERTSDALE, Alabama — For the third straight meeting, Robertsdale Mayor Charles Murphy fielded questions about the city’s debt during the Aug. 15 Robertsdale City Council meeting.

“A lot of …

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Robertsdale mayor fields questions about debt

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ROBERTSDALE, Alabama — For the third straight meeting, Robertsdale Mayor Charles Murphy fielded questions about the city’s debt during the Aug. 15 Robertsdale City Council meeting.

“A lot of people we talk to are confused about what the debt amount is and why we have so much debt,” said Tim Brown, who is a city council candidate, running against incumbent Brent Kendrick.

Brown asked for another clarification of the debt following regular business at the Aug. 15 meeting.

Mayoral candidate Roger Booth asked for debt figures at the council’s July 18 meeting and was told at the time by city CFO Ann Simpson that the debt was between $23 million and $24 million.

At the Aug. 1 council meeting, Murphy stated that the figures presented during the July meeting were figures presented during the city’s audit in January and did not reflect payments made since then.

The city makes about $154,000 in debt payments each month, Murphy said, which to date brings the total debt down to about $22 million. Audit figures also reflect three budgeted loans to purchase two trucks and a by-pass pump for the city’s Utilities Department that have not been made, which add up to around $300,000.

Loans were recently refinanced loans, adding an additional $4.5 million in debt in order to move forward with upgrades to the city’s electrical system.

The city is in the process of negotiations with the Municipal Electric Association of Georgia (MEAG), which would lower the rates the city pays for electricity beginning in January 2018.

“Once that is in place, we will get back more than $3 million of that loan,” Murphy said.

But when questioned, Murphy confirmed that the $4.5 million has already been spent and the savings are still part of the city’s future plans.

Both Brown and Booth contend that the money would be better spent on needed drainage and sewer improvements in the city.

Murphy said that more than $800,000 has been spent on drainage and sewer improvements during the last four years, most of which has been paid for by federal grants.

“Improvements have been made, they just aren’t happening fast enough,” Booth said.

Murphy stated that the city’s debt rate is roughly 10 cents on the dollar and once the electrical improvements are in place and the debt is paid down, the rating will be closer to 9 cents on the dollar.

“Bottom line is that the city is in good financial shape,” Murphy said. “To put that in perspective, if your household had a $750 house payment and a $250 car payment, for a total of $1,000 a month in debt, you would need to make $120,000 a year to have the same debt rating. I’d say that’s pretty good.”

In other business Aug. 15, resident Brian Crouch gave a presentation of plans for the First Annual Robertsdale Rib-Off, which will be Oct. 15 at Honeybee Park.

The event will be a fundraiser for The Lighthouse of Baldwin County, located in Robertsdale.

Teams are invited to participate at a cost of $250 per team and sponsorships are available for $500 each.

Farm Fresh Meats of Robertsdale has agreed to provide the meat for the event, Crouch said and Ard’s Printing will provide the T-shirts.

Because of Health Department regulations, competitors can supply food to guests, but will not be able to sell their own food at the event. Organizers are looking to secure food vendors, games and activities for the event.

A native of Memphis, Crouch said he has attended several Memphis in May events and thought a similar event would make a good fundraiser for the city.

Prize money and trophies will be presented at the event.

“We support this 100 percent,” said Lighthouse Director JoAnn Sheils, who was present at the meeting. “Anything you can do to support it would be greatly appreciated.”

The council voted unanimously to allow the event at Honeybee Park and allowed the use of the city’s digital billboard to promote the event.

The council also voted Aug. 15 to rename a portion of East Illinois Street to Baldwin Street to comply with E-911 regulations.