RBC Capital Markets Investment Banking Agreement

At the February 22nd, 2011, Polk City Meeting, Mr. Gerald Hartman, from GAI Consultants, presents the Council Members with a copy of the proposed Investment Banking Agreement with RBC Capital Markets.  Here is a copy of the document.  RBC Capital Markets Investment Banking Agreement  The council voted to 4-1 to move forward with this agreement for RBC for work out the details for this proposed bond/loan for $8.3 - $8.9 Million.  The estimated interest alone will run approximately $6 Million dollars.  If this bond/loan is later voted to be approved by City Council to move forward with the final deal that RBC proposes, the total city debt will be increased to somewhere in the neighborhood of $19 Million from the current $10.4 Million debt.  See the details of these calculations in a previous blog post here: Proposed City Refinancing Will Nearly Double City Debt for Tax Payers

GAI Water and Wastewater Utility Study

At the February 22nd, 2011, City Meeting, Mr. Gerald Hartman, of GAI Consultants, presented his findings of the water and wastewater study he had been working on for the last few months.  Here is a copy of the booklet presented to each City Council Member at the time of the meeting.  There were 2 maps presented during the meeting as well.  Unfortunately, some of the information on these maps is not legible since the copies provided are in black and white and many important details were differentiated with added lines in red, which get completely lost in the black and white copies.  Other details are still viewable, but you may have to enlarge particular details significantly to see them, since the text is so small.

GAI Water and Wastewater Utilities Study

GAI Water and Wastewater Utilities Study Maps

Recall Procedures for Municipalities

Recall procedures are getting more and more common in today's challenging economic times, especially when taxes and fees keep going up, while people are experiencing layoffs, cut backs in pay and benefits, or hours worked.  Voters are expected to be fairly represented by their elected officials, and if this is not the case, there might be sufficient grounds for a recall.  On March 15, 2011, a recall election will be held in Miami-Dade County to recall Mayor Carlos Alvarez and County Commissioner Natachas Saijas.  Here is a link to a recent article printed in the Miami Herald.  Miami Herald Article  Here is another article that gives a little more background in this case.  Carlos Alvarez Recall, Miami Dade County, 2011  The main reason for this recall is an increase in taxes, in some cases up to 14%, and increasing the salaries of the public officials.   

According to the Polk City Charter, under Article VIII - Qualified Voters; Powers, Section C-35; Recalls P.C. Charter Article VIII - C-35: Voters Powers - Recalls it refers to the Florida State Statute F.S. 100.361 where the procedure for Municipal Recalls is outlined in detail.  Florida State Statute 100.361 Municipal Recall .  There are also many cases of City Council Recalls throughout the nation as shown in this link:  City Council Recalls. Florida State Representative Kriseman introduced a bill in February, 2011 to allow recalls in the Florida House & Senate, as described in this article: Florida Ballot News. 

This recall procedure gives the power to the voters to remove any elected official from office who does not represent his/her constituents.  After all, they are working for us, and are our voice in the decision making process that affects our daily lives. 

Whoops - Now there are 65 Applicants for Polk City Manager Position

Sun 'n Lake's in Sebring General Manager, Michael Wright, had some explaining to do to his supervisors when it was reported in The Ledger article on February 19, 2011, that his name was among the 66 applicants applying for the Polk City manager position.
This list included an application that was submitted back in July, 2010, by Michael Wright of Sebring, who was working as county administrator in Highlands for two years until June 22, 2010, when he was terminated.  According to this article written in the Highland Today newspaper, Highland Today News Article , Mr. Wright, after hearing that Cory Carrier had resigned as Polk City manager in the middle of the financial crisis in June, 2010, sent a letter to Mayor LaCascia, applying for the job.  In this letter he stated he had "resurrected the finances of cities that were in dire financial circumstances."  However, Wright added, "I would not be interested in the position on a permanent basis, and would assist you in the recruitment of a new city manager." 

It seems that City Clerk Patricia Jackson had included Wright's letter in the folder of applicants for the city manager position. 

Wright was offered the job of interim general manager in Sun 'n Lake of Sebring in September, 2010,  after Al Greishaber resigned on August 31.  He was hired permanently as the SNL general manager in October at a $120,000 a year salary.

Polk City Council Meeting Notes - February 14, 2011

February 14, 2011, Polk City Council Meeting Notes

Proceedings for the first segment of the monthly City Commission meeting, held on February 14, 2011:

A.  APPROVE CONSENT AGENDA

B.  PRESENTATIONS AND/OR RECOGNITIONS - None

C.  PUBLIC HEARINGS:

1. ORDINANCE 1272 - Vacating Streets "A" and "B" Acting City Manager, Trudy Block, explained that this was just “housekeeping”, and this process was started during the last administration, but never finalized with an ordinance.

2. ORDINANCE 1273 - Allowing for Mobil Homes in R-4 Zones (mixed residential use), reversing a previously passed ordinance condemning mobile homes that had disconnected utilities for 3 months or more.

Both these ordinances passed with a unanimous vote.

D.  UNFINISHED BUSINESS - None

E.  NEW BUSINESS –

1.  Vice Mayor Block’s “temporary appointment” as Acting City Manager was extended for the 8th time for an additional 30 days by a 4 - 1 vote.  Counselor Kimsey voted "Nay".

2.  ORDINANCE 1274 – Providing for Requirements Regarding Unoccupied Dwelling Units
Unoccupied dwellings that have been vacant for one year or longer would be subject to an inspection to insure that the dwelling is safe for occupancy. This proposal passed with a unanimous vote.

3.  Second Extension of Dormancy Period – Cardinal Hill Property

Ms. Block announced that she made an agreement with Mr. Johnson, the owner of the Cardinal Hill property, that Polk City, beginning February 1,  2011,  will start paying him $3,000/month in lieu of the $1,000 water/sewer credit he was receiving per month under the land lease agreement.  She initiated a motion to forward a check for $18,000 in advance for the next 6 months. When asked how many water/sewer credits Mr. Johnson had accrued, Ms. Block stated that he owns 300 credits worth $300,000 in water/sewer credits. These credits can be sold to a developer.  It was not made clear if Mr. Johnson can resell these credits to any developer wishing to build anywhere within the Polk City Utility Service area.  This could potentially dramatically reduce future income for water and sewer revenues for the city. This motion passed unanimously.

4.  Vehicle Lease between the City of Polk City and Woodard & Curran

Ms. Block announced that she made a deal with Woodard & Curran to lease out all the city's currently leased utility vehicles for $1.00 per vehicle for 5 years. Woodard & Curran will take over the responsibility of maintenance up to $2,500 and gas purchases. When questioned about who assumes responsibility if the mileage exceeds the lease contract, Ms. Block did not know.  She stated she would have to look into this issue and will provide that information at a later date.  We’re still waiting for the answer to that question. This motion passed unanimously.

At this time the meeting was recessed until Tuesday, February 15, 2011 at 7:00 PM

The next evening, this meeting cancelled due to lack of a quorum and was rescheduled to Tuesday, February 22, 2011 at 7:00 PM

Proposed City Refinancing will Nearly Double City Debt for Tax Payers

You ask, "WHAT ARE YOU TALKING ABOUT?!!"  Yes, it's true!  City Officials probably don't even realize it themselves since they seemed oblivious when asked detailed questions regarding the amortization schedule of this new proposed municipal bond/loan.  Read on for more details.  We did the math.

Polk City is ready to spend approximately $800,000 of tax payer money for a piece of property that according to the Polk County Property Appraiser's office is worth approximately $70,000!  Here is a link to the details at the Property Appraiser's web site: Cardinal Hill Property - Parcel ID 252630000000021030  During the public comment at the end of the 2/23/11 city meeting, Laura Lambert asked the council and city attorney the question of how much the property is appraised at and how many acres the property consists of that the city is willing to pay over $800,000 for.  Laura was initially answered with dead silence and then Acting City Manager/Vice Mayor Trudy Block responded with something like, "I do not feel it would be wise to talk about this at this time since the city is still in negotiations with the property owner."  This was a simple question of fact and the city officials and attorney refused to answer the question.  This is public record and the city has already spent tax payer money to get an appraisal on the property in 2010, so they have this information.  Any time a land purchase is being considered these are questions anyone would want to know and would be entitled to know.  Ms. Block has been assuring the public that the price the city will pay will be under a million dollars for a piece of property that is only 38.9337 acres and valued at $70,000 on the Polk County Tax Record!!!  How is that wise use of taxpayer money?  Do they really think the public would have no way to find out this information??  No wonder Ms. Block was silent and the color drained from her face when pressured to answer the question.  The tension in the room was so thick that Attorney Tom Cloud felt the need to break the dead silence and started his "you may have a differing opinion argument" that he loves so much when he doesn't want to answer a direct question because he knows he's been cornered.

The "house keeping" plan to "refinance" some of the city's current debt and add several more millions is just further proof that the city officials have no common sense when it comes to business and fiscal responsibility.  City Officials are suggesting that this new loan for approximately $8.3 - $8.9M, financed over 30 years, plus the roughly $6M in interest is a "good deal" which could possibly reduce the city's monthly payments compared to what the city is currently paying for the $1 M loan to the county plus the $4 M loan to SunTrust.  Officials and Mr. Hartman from GAI would not disclose what interest rate they were making these assumptions at.  Simple math on an amortization calculator shows that they are figuring somewhere in the neighborhood of $8.3M at 4% for 30 years or $8.5M at 4% for 30 years, coming out to roughly $6M in interest.  Considering all the fees for this deal will be tacked on the bond/loan at the end, lets go with the $8.5 number to be conservative.

At no time at last night's meeting would anyone provide a straight answer of exactly how much NEW debt is being incurred.  Well lets do the math:

If we add this $8.5 M, plus the $6M in interest, plus the other debt that is not being refinanced that the city is conveniently not speaking about (see the 2009 Audit on P.C.'s web page, page 36 of the PDF file Polk City 2009 FY Audit to see the list of other long term debt obligations) we are estimating that the total debt the city would then hold would be approximately $19 Million Dollars!!  Congratulations Polk City Officials! You will have successfully nearly doubled the total city debt in one fail swoop!  With a population of only approximately 1,685 people, $19 M in city debt works out to be around $11,275 in debt for each man, woman and child living inside city limits.  How can this be considered fiscal responsibility by any stretch of the imagination?

$8.5 Million - New suggested "refinancing" bond
$6 Million - Interest on this "refinancing" bond
$1.676 Million - Existing Series 2007 Capital Improvement Revenue Bond
$2.728 Million - Existing Installment Note to Florida DEP
$63,282 - Existing Installment Note to Old National Leasing
$19 Million Total City Debt (roughly)

City Council Members, why don't you get your heads out of the sand and stop putting your blind faith in these high dollar experts who you have essentially allowed to make all major financial decisions for the city since you hired them!  Can't you see that they are all long term buddies padding each others pockets at the city's expense?  Now you have also agreed to pay Mr. Gerald Hartman, from GAI, engineering consulting fees on an as-needed basis, and the hourly fee schedule is only found in the little packets provided to council?  His fees must be pretty steep since after repeated questioning, not once did anyone directly state how much Mr. Hartman would be charging for his services.  Great example of transparent government at it's best!  NOT!!

Question of the day:  Would Mr. Cloud, Mr. Hartman, Mayor LaCascia, Vice Mayor Block, and Council Members Adorno and Blevin dare to invest their personal money or suggest their family members to invest their retirement funds in these junk bonds?  We highly doubt it!  How can they expect any financial institution in this economy to make such a financial commitment?  They would be insane!!

Here is a link to the Ledger article Mr. Keven Bouffard wrote about the meeting last night. Polk City Council Moves On Debt, Utilities  Page two of this article states, "The biggest items on the list for bond money, according to Hartman's proposal, are $3.8 million to refinance a $4 million loan in 2005 from SunTrust; $1.4 million for 10 additional water and wastewater capital improvements, including $565,000 on improvements to the Cardinal Hill sewage treatment plant; $897,412 million to pay off a $1 million loan to Polk County as part of the transfer of the Mount Olive water and sewer utilities; and $531,199 to pay the county impact fees the city withheld for several years through 2009."  Is this a Freudian slip?  The city officials have gotten so used to dealing with Millions of dollars, as if they were Thousands of dollars, even the reporters can't keep their numbers straight.  Sad state of affairs!

There is a lot more information that was covered during this meeting.  We will update the blog with new articles in the near future with more of this detailed information or this post would be way too long.  Thank you for your continued readership!

City Manager Applicants

A Ledger article Polk City Draws 66 Manager Applicants posted late Saturday night gives some insight into the applicants Polk City has received so far for the City Manager position.  Just based on what Mr. Bouffard of the Ledger found about some of the backgrounds of these applicants, it doesn't sound too promising.  Some sound downright scary!  Let's hope a thorough background check is done on any potential candidate they end up considering, so we don't end up in a worse position than we are already.

Amended Agenda for Feb 22nd Meeting

An amended agenda went out today for the "continuation" meeting from the February 14th meeting, to be held on Tuesday, February 22nd, 2011, at 7:00 PM.  It incorrectly states that it is a "reconvene from January 14, 2011, meeting", but should read "reconvene from February 14, 2011, meeting.  The original "reconvene meeting scheduled for February 15, 2011, was cancelled due to lack of a quorum on the City Council.  A few new items have been added.

Amended Agenda February 22, 2010 Meeting

"Continuation" of Monday 2/14 City Council Meeting Rescheduled

The 2nd part of the Regular City Council meeting from Monday, February 14th, 2011, which was originally scheduled to take place on Tuesday, February 15th, was canceled due to a lack of a quorum.  Only 2 of the 5 council members were present. 

The new date for the continuation of the Monday, February 14th meeting is now scheduled for Tuesday, February 22nd, 2011, at 7:00 PM.

To see a copy of the agenda for this meeting, click here: February 14, 2011, City Council Agenda

Proposed Additional Millions of Debt For Polk City

Here is a preview of what will be discussed at tonight's Polk City Council Meeting.  Proposed Additional Millions Of Debt For Polk City  This article was posted late February 14, 2011, in The Ledger by Kevin Bouffard who covers our local politics for the newspaper.  The meeting is a continuation of last night's meeting, and is scheduled to start at 7:00 PM tonight. 

Wauchula Officials Shake-Up For Sunshine Law Violations

One of our readers sent a link to this story:  Scott Removes Wauchula Official For Violating Florida's Sunshine Law, Four Others Resigned  which was posted in The Ledger yesterday by Ledger reporter, Jason Geary. 

Inflation Outpaces Incomes in Polk

As printed in The Ledger on January 26, 2011, Inflation Outpaces Incomes in Polk, this article really gives the residents of Polk County and especially in Polk City a reality check.  In the five-year U.S. Census Bureau estimate, which was recently released, it shows that the median household income for Polk County was $44,043 and increased by only 22% since the 2000 census, while the Consumer Price Index (CPI) rose 28% during that same period.  In order to keep up with the Consumer Price Index, also known as Cost of Living Increase or inflation, the median household incomes must have increased by at least 28%.  The median is the halfway mark, which means that half of Polk County's 224,299 households have incomes of less than $44,043 and half have higher incomes.  The income figures for the five-year average estimates have been adjusted to reflect 2009 dollars.

Of the 17 cities in Polk County, only 3 cities exceeded the counties' median household income increase:  Eagle Lakes increased by 39.1%, Auburndale increased by 30.0% and Lake Whales increased by 29.6%.  Polk City came in third from the bottom, with a measly 5.7% increase in median income.  Only Hillcrest Heights with a 5.0% increase and Highland Park with an actual decrease of 17.2% were below Polk City. The retirees have been hit especially hard, since interest on savings and investments have been lowered considerably, and they have not received a cost-of-living increase from Social Security over the past two years.

According to the census bureau, the median income in Polk City was $32,083 in 2000, and $33,897 in 2005-2009.  With that in mind, the increases in utility costs and advalorem tax we have endured in this city over the past few years, there is little doubt that Polk City's residents are hurting financially.  Now our city's leadership is considering adding another $2Million - $3Million dollars debt to our already astronomical $10.4Million existing debt.  A 12.4Million debt divided by the population of 1685 amounts to more than a $7,300.00 debt for every man, woman and child living in Polk City.
Why is Polk City so obsessed with keeping and expanding its waste water treatment plants despite its  financial troubles?  The city's debt exploded once it got into the sewer business, and the anticipated growth which was to fund this sewer endeavor never happened.  Yet the administration is continuing to push forward, when there is no significant growth expected in this long recession.  At present, the city's utility customers are paying approximately 2/3 of the city's revenue for its $3.8Million annual budget.  It is the city administration's goal to add as many residents as possible to their sewer system, which is now only operating at approximately 25% capacity and is losing money.  That will more than double the monthly water bills, once these customers are put on the sewer system instead of using their septic tanks.  Most of our residents cannot afford this extra expense every month.  They are having a hard enough time paying to keep their gas tanks full so they can go back and forth to work. 

By seeking permission from our City Council to borrow additional Millions at the upcoming Feb. 14-15th meeting, the city is then planning to get the County off their back by paying off the debt it currently owes for $531,000 in past-due impact fees, and $1.4M for the Mt. Olive spray field.  Then it plans to reroute the existing customers from the ailing Mt. Olive Water & Sewer Plant to the Temporary Cardinal Hill Treatment Plant, over the strong objections of the neighboring residents of that plant.  This will potentially result in another expensive lawsuit the city will be facing in the near future.  The property owners near the plant have expressed stiff opposition, and fear their drinking wells will become contaminated, forcing them onto city utilities.  In addition, the lease on the Cardinal Hill property is expiring in February, 2012, and the temporary permit will have to be extended at great cost to the taxpayers. The city already had the Cardinal Hill property appraised last year, and is planning to purchase it with the additional borrowed funds.

 At the February 7, 2011, mediation meeting with the city, the County repeated it's offer to take back the Mt. Olive WWT plant.   By taking this Albatross off the city's back, it will give Polk City residents some relief of their mounting debt with no real tax base to support it.  County Chairman Ed Smith said that would eliminate approximately $1.4Million of the city debt.  However, the city continues to spend thousands of dollars in legal fees to prevent this from happening.

Polk City is on a path of financial destruction.  Low income levels, economic factors and decisions now being considered by this administration make it less and less affordable to live here.  Growth in Polk City will be the last thing that will happen with this business plan.

Agenda for City Council Meeting - February 14-15, 2011, 7:00PM  It appears that this agenda has not been emailed to the distribution e-mail list, as in the past.  This agenda was found on Polk City's official website.  Please note this meeting will be split between two dates, February 14, 2011, and February 15, 2011.  The February 15, 2011, date has not been officially announced on the city's website.   On both dates the meeting is scheduled to start at 7:00 PM.  As you may have noticed, the more important discussions affecting the future of our city and our wallets will occur on February 15. 

As mentioned in the newsletter that accompanied this month's utility bills, "During every monthly council meeting there is a time for public comment at the end of the meeting."

Clarification of Conflicting Meeting Dates for February City Council Meeting

After repeated attempts to speak to Polk City City Clerk, Patricia Jackson, directly to get clarification on the conflicting meeting dates announced for this month's Polk City Council meeting, we were finally able to get an explanation.  The regular City Council meeting is scheduled for Monday, February 14, 2011, at 7:00 PM., as posted on the city's official web page, Polk City Website .  According to Ms. Jackson, the agenda for this meeting has not yet been released, however, it is expected to be quite lengthy.  It will include discussions on refinancing a portion of the city's debt and adding an additional $2 Million in debt in this refinancing deal.  Since this meeting is expected to exceed the usual time allotted, the agenda will show a "Continuation" Agenda for the Tuesday, February 15, 2011 meeting, which is tentatively scheduled to start at 7:00 PM. 

Please preempt your calendar for these very important meeting dates.  It is of the utmost importance that as many people as possible will attend these two very important meetings.  They are re-charting the financial  future of this city and it will affect your wallet! 

Ledger Article: Polk City Pledges to Pay County Its $1.4 Million Debt Within Six Months

Polk City Pledges to Pay County Its $1.4 Million Debt Within Six Months 
The article speaks for itself.  According to the article, Polk City is scheduled to hold an important meeting discussing  the details of this refinance plan with its City Council Members on February 15, 2011.  This date was also reiterated by Ms. Trudy Block at the meeting last night.   However, when checking the official Polk City website, there is no meeting scheduled for Tuesday, February 15.  The regular Polk City meeting is still scheduled for Monday, February 14, 2011 at 7:00 PM.

Polk City Planning Board Meeting Agenda

There is a Polk City Planning Board Meeting scheduled for Tuesday, February 8, 2011, at 6:00 PM at the Polk City Government Center, 123 Broadway Blvd., SE.  Here is the link for the agenda:
Planning Board Meeting Agenda

Ordinance 1273

Ordinance 1274