DEAL OR NO DEAL???

Here are a couple of Ledger Articles discussing the outcome of the August 6, 2010 meeting between Polk County Manager Mike Herr and Polk City Acting City Manager, Trudy Block.  The first article dated August 9, 2010 titled   Agreement With County May Be Near on Polk City's Debt  Then there is the Ledger article published on the editorial page on September 28, 2010 Polk City: Secret Deals, Bad Memories 

Quoting from the August 6, 2010 article:  "Acting City Manager Trudy Block on Monday said she and Polk County Manager Mike Herr agreed on key points of a new deal to pay off $2.2 million in Municipal debts to the county at a meeting Friday afternoon from which the public and press were excluded.  Polk County commissioners will consider the deal at their Sept. 15 meeting."

"I thought Friday's meeting would be a little more difficult.  They really want to help," Block said.  "They know we're in trouble.  I think they want to help."

"Negotiators agreed on presenting two options at the Sept. 15 commission meeting.  One would nullify the 2008 deal that turned over the Mount Olive water and sewer system from the county to Polk City.  That involved a $1.7Million loan, both principal and 11% interest, over 10 years on the transfer of a roughly 30-acre property the sewer treatment plant uses as a spray field for treated wastewater."

The news article goes on to say that "Block, also one of five  council members, said she thinks the city can retain ownership of the Mt. Olive system under restructured finances.  Herr could not be reached to comment on Monday, but Freeman said county officials will present the options without a recommendation, unless commissioners ask."  Jim Freeman is the deputy county manager over the utilities department.

"For the city to retain ownership it will have to present a detailed financial plan showing it can meet all its debt obligations at least for the next decade, said Freeman, adding county officials want assurance the city's finances won't unravel again.  As part of Polk City's financial restructuring, Herr agreed to lower the loan interest rate to 3.3% per year, a 70% reduction.  That would lop off about $50,000 a year on interest payments."

The article continues:  "Block entered Friday's two-hour meeting facing a gap of about $144,000 in her projected 2010-2011 city budget, which did not include payments to the county on either The Mt. Olive or impact fee debts."  Additional revenue from savings due to changing the city's contract with Polk County Sheriffs Office to only keeping 1 sheriff at the Polk City Hall, and projected revenue of approximately $200,000 from property owners who have not yet paid the new water-and-sewer-acces fees council approved in November, 2009, should balance the budget.  Although now it seems that the WAC & SAC fees are going to be challenged in court.  In the County's September 15 meeting, Mayor Joe LaCascia said these fees are perfectly legal according to a FL Statute, but later Ms. Block contradicted his statement by saying that these fees are propably going to be discontinued because the legality has not been established, and Polk City has retained legal council in Orlando to deal with this issue. 

"The additional revenue will balance Polk City's budget, including the payments on its county debts if the County Commission agrees to the proposed financing plan," Block said. 

In the Ledger's editorial article dated September 28, 2010 "Polk City officials are now miffed that county government staff reneged (they claim) on a closed-door deal to allow them to keep the Mt. Olive water and sewer system.  A DEAL'S A DEAL?  One odd new development in this episode is Polk City officials complaining that they thought they had a deal with former County Manager Mike Herr and his staff, following a closed-door meeting in early August that the Ledger reporter was barred from attending.  They say they thought the county loan would be refinanced at a much lower interest rate and extended for two more years to 2020."

"Clearly, someone either misheard something or changed their mind or received new persuasive evidence that the deal was a dud, from the county's standpoint."

"DEAL OR NO DEAL"??