THANK YOU. AT THIS TIME WE WILL RECESS
[00:00:02]
COURT AT 10:05 TO ENTER INTO THE SEPTEMBER 29TH ROAD DISTRICT MEETING. WE WILL-- THE TIME IS 10:05.AND WE WILL START WITH THE REVIEW AND APPROVAL OF MINUTES.
>> I MOVE WE APPROVE. >> I'LL SECOND.
>> ALL RIGHT MOTION BY COMMISSIONER COOK.
SECONDED COMMISSIONER BOLES ALL IN FAVOR.
MOTION CARRIES 5-0. ALL RIGHT ITEM NUMBER TWO DISCUSS CONSIDER AND TAKE APPROPRIATE ACTION ON RESOLUTION EXPRESSING OFFICIAL INTENT TO CANCEL OR ABANDON A PORTION OF REMAINING AUTHORIZED UNUSED ROAD BOND OPERATIONS FOR MAY 10TH 2008 BOND ELECTION FOR SOMMERSET HILLS ROAD DISTRICT NUMBER FOUR. COMMISSIONER COVEY.
>> OKAY SO BACK IN 2008, A ROAD DISTRICT WAS ESTABLISHED FOR THE RONALD REAGAN AREA SO THIS IS THE AREA WE'RE TALKING ABOUT. AND THERE WAS, I'M GOING TO DO THE HISTORY HERE A LITTLE INTOXICATE BEAR WITH ME.
THERE WAS ROAD DISTRICT ONE AND TWO.
AND THEY WERE DISBANDED AND WE STARTED OVER WITH THREE AND FOUR. OKAY THAT'S WHY IT'S THREE AND FOUR AND YOU DON'T SEE ONE AND TWO ANYWHERE JUST EXPLAINED THAT. THE ROAD DISTRICT FOR-- FOUR IS THE ONE THAT WE'RE TALKING ABOUT TODAY.
AND IT TAKES IN A PIECE OF SUN CITY, BUT IT ALSO-- WHICH HAS BECOME SUN CITY AT THE TIME, IT WASN'T.
WAS GOING TO BE A DEVELOPMENT. AND PART OF THE ISSUE WAS THAT THEY WERE GOING TO BUILD THE TWO LANES OF RONALD REAGAN BETWEEN WILLIAMS AND 195 THAT EXISTS TODAY.
THE DEVELOPER WENT UNDER. AND SO-- EXCUSE ME, THE COMMISSIONER'S COURT AGREED THAT WE NEEDED TO BUILD THIS SEGMENT OF REAGAN, AND WE DID. BUT WE BECAME THE BENEFACTOR OF THAT-- OR THE MONEY CAME TO US. BECAUSE HI TO MOVE MONEY OFF OF SOME PROJECT. OTHER PROJECTS TO BE ABLE TO DO NP AND THEN IT WENT BACK. EVENTUALLY.
NOT UNTIL 2020 WAS THERE ENOUGH VALUE ON THE GROUND TO ACTUALLY SELL BONDS. AND SO FOR THE LAST SIX YEAR, BONDS HAVE BEEN SOLD AND TAXES HAVE BEEN COLLECTED.
TO MEET THAT DEBT NEED. I'VE BEEN VISITING WITH THE FOLKS THAT ARE IN THIS ROAD DISTRICT FOUR OVER THE LAST SEVERAL MONTHS, AND THEY ARE QUITE UPSET THAT THEY HAVE TO PAY THIS EXTRA TAX. AND I GET IT.
ONE OF THE THINGS THOUGH, WE HAVE LEGITIMATE DEBT ON THE BOOKS AND PEOPLE, ENTITIES THAT NEED TO BE REIMBURSED LEGALLY.
BUT I TOLD THEM THAT I WOULD LOOK AT WHAT I COULD DO TO REDUCE THE CAP. THE CAP ORIGINALLY WAS SET.
IT'S $70 MILLION. AND I BELIEVE THAT THE REASON WHY IT WAS SO MUCH IS BECAUSE IT ANTICIPATED BUILDING OTHER LANES OF RONALD REAGAN. SO THERE'S TWO THINGS THAT WE'RE DOING HERE TODAY. ONE, THROUGH THE HELP OF OUR AUDITOR AS WELL OUR CONSULTANT ENGINEER THAT GOES OVER EVERY INVOICE TO BE REIMBURSED WITH A FINE TOOTH COMB.
DOWN TO THE MANHOLE. AND A LIGHT POLE.
>> HOW MUCH DO MANHOLES COST? >> A LOT.
BUT DOWN TO THAT. AND EVEN THE TENSION PONDS.
IF IT'S ALL-- IF IT'S FOR CERTAIN ROADS THAT GET REIMBURSED IF IT'S RELATED TO THAT, GREAT.
IF IT'S NOT, EVERYBODY AN PORTION OF THAT DOES NOT GET REIMBURSED. SO THEY HAVE BEEN AUDITING INVOICES AND WE KNOW THE NSH THAT'S REALLY CLOSE THAT WILL BE REIMBURSED. IT'S NOT $70 MILLION SO WHAT I COMMITTED TO THE PEOPLE. AND THEY ASKED ME TO DO THIS AND I SAID I WOULD LOOK AT IT. WE HAVE.
AND NOW TODAY WE'RE PROPOSING THAT WE REDUCE THE $70 MILLION DOWN TO 53. THAT GIVES US A LITTLE BIT OF CUSHION. AND I TOLD THEM THAT IN A MEETING RECENTLY SO IF FEW SOMETHING COMES UP AND I TRULY BELIEVE AND JULIE IS HERE AND SHE CAN SPEAK TO IT.
THE SECOND THING WE ARE DOING HERE IS COMMITMENT THAT WE WILL NOT BUILD ANY ADDITIONAL LANES OF REAGAN WHERE THE ROAD DISTRICT PAYS FOR IT. AND I BELIEVE WE ARE ALSO LOOKING AT OTHER ASPECTS OF THE ROAD DISTRICT SO YOU MAY HEAR MORE IN THE FUTURE BUT TODAY THESE ARE THE TWO ASPECTS THAT I WANT TO GET DONE BECAUSE IT'S THE RIGHT THING TO DO.
WE HAVE COMMUNICATED TO EVERYONE.
[00:05:01]
WE-- AND I DON'T KNOW IF ANYBODY'S HERE.I DON'T SEE ANYBODY HERE FROM THE DISTRICT.
BUT WE HAVE SET WILL THEY THE TRANSPORTATION CODE THAT DEALS WITH ROAD DISTRICTS. WE HAVE EXPLAINED TO THEM.
AND ANSWERED THEIR QUESTIONS AND TODAY I BELIEVE IT'S THE RIGHT THING TO DO FOR THE ROAD DISTRICT.
SO I'LL MOVE TO APPROVE ITEM 2 ON THE ROAD DISTRICT AGENDA.
>> YOU GO AHEAD. >> YOU'D LET ME SECOND.
ALL RIGHT THANK YOU COMMISSIONER LONG I APPRECIATE THAT. WE HAVE A MOTION AND SECOND.
ANYMORE DISCUSSION? >> JUDGE, I JUST-- BEFORE YOU SAY SOMETHING, I FORGOT TO SAY JUDGE HAS BEEN A PART OF THIS DISCUSSION TOO. OF COURSE HE REPRESENTS THIS AREA. AND IN MEETING WITH THE FOLKS, YOU KNOW WE'VE TRIED TO COMMUNICATE.
AND ANSWER THEIR QUESTIONS. THERE'S MORE TO DO PERHAPS IN ANSWERING QUESTIONS. ONE OTHER THING.
THEY WERE CONCERNED THAT THE DISCLOSURE WAS NOT ADEQUATE FOR REIMBURSEMENT. AND WE HAVE-- I'VE ASKED THEM TO SEND THOSE TO US. SINCE OUR MEETING WITH THEM.
AND WE HAVE SENT THOSE TO ATTORNEYS.
TO ASK THE QUESTION. IS THIS SUFFICIENT DISCLOSURE AND ANSWER IS THAT THEY ARE SUFFICIENT DISCLOSURE NOTICES AND THEY CANNOT, WE CANNOT WITHHOLD REIMBURSEMENT.
SO I JUST WANTED TO ADD THAT TO THE COURT SO YOU WOULD HAVE
THAT KNOWLEDGE. >> YEAH, THERE'S DEFINITELY STATE LAWS THAT COVER DISCLOSURE.
WHEN YOU BUY A HOUSE. AND DEFINITELY WANT TO WORK WITH THE RESIDENTS OF THE ROAD DISTRICT TO MAKE SURE ALL THOSE RULES AND LAWS WERE FOLLOWED WHEN THEY BOUGHT THEIR HOUSE.
AND EVERYONE'S ON AN INDIVIDUAL BASIS BOUGHT ON SEPARATE DATES.
SO DEFINITELY WANT TO BE RESPONSIVE TO THE NEIGHBOURS IN SOMMERSET HILLS AND THE COMMITMENT THAT WE'VE MADE IS TO BRING THIS TO COURT TODAY FOR CONSIDERATION TO REDUCE THE AMOUNT AUTHORIZED BY $17 MILLION AND YOU KNOW AS PART OF THAT RESOLUTION IF YOU JUST WANT TO CLARIFY ONE MORE TIME.
THE MOTION AND WHAT WE ARE PROPOSING TO THE COURT TODAY FOR THE-- CONCERNING THE SOMERSET HILLS ROAD DISTRICT
NUMBER 4. >> TWO MAIN ITEMS TO REDUCE CAP OF $70 MILLION DOWN TO $53 MILLION SO REDUCING IT BY $17 MILLION AND THE SECOND THING IS TO CODIFY THAT WE WILL NOT EXPEND ANY DISTRICT MONEY ON FUTURE EXPENSES ON RONALD REAGAN. FROM WILLIAMS DRIVE TO 195 OR
ANY OTHER PART OF REAGAN. >> FROM THAT ROAD DISTRICT.
>> THOSE ARE THE TWO. >> ALL RIGHT ANY CLARIFICATION?
OH I'M SORRY GO AHEAD. >> I THINK IT'S ALSO NOT NECESSARILY PART OF THIS RESOLUTION, BUT THE TAX RATE IS CAPPED. I THINK THERE WAS SOME COMMENTS PREVIOUSLY DURING CITIZENS COMMENTS THAT TAX RATES WERE GOING TO TRIPLE AND WHATEVER. IT'S CAPPED AT 29 CENTS?
>> WE VOTED ON 29 CENTS WEEK OR SO AGO.
>> AND IT WILL NEVER EXCEED THAT.
>> WELL, THE ONLY-- OKAY SO THIS IS SOMETHING I WANT TO CLARIFY WHICH I DID AT THE MEETING WITH ABOUT 250 PEOPLE I THINK IN SUNSET CITY. THE WAY THEIR TAXES ARE CALCULATED. IT'S THEIR PROPERTY VALUE TIMES THE TAX RATE. PERIOD.
NOT THE CAP. THE CAP AND THE DEBT IS HOW LONG THEY'LL PAY. SO WE TRIED TO CLARIFY THAT.
PROPERTY VALUES, AS LONG AS THEY GO UP, THE TAX RATE, WE CAN AFFORD MORE DEBT AND WE CAN PAY IT OFF EARLIER.
BUT AS WE'VE SEEN IN OTHER ROAD DISTRICTS COMMISSIONER, I'VE SEEN AVERY RANCH, AS THEIR VALUES WENT UP, IT GOES DOWN.
THE ANTICIPATION IN THIS ROAD DISTRICT WAS THAT THERE WAS GOING TO BE COMMERCIAL ALONG RONALD REAGAN.
AND IT WAS NOT. BECAUSE WHEN THE ORIGINAL DEVELOPER WENT UNDER, POULTY CAME IN AND BOUGHT THIS LAND AND PUT HOMES THERE. SO THAT'S WHY IT'S HOMES, IT'S NOT COMMERCIAL. THAT CAUSES US TO HAVE THE TAX RATE IMPORTED BECAUSE WE HAVE TO MAKE SURE DEBT PAYMENTS ARE MADE. JULIE CAN KAMENT ON THAT.
>> THE ONLY THING I WOULD COMMENT IS YES WE KEEP THE TAX RATE AT 29 CENTS ESPECIALLY AS WE ARE EVALUATING THE ABILITY TO ISSUE ADDITION AL BUT THERE IS STILL AN AUTHORIZATION THAT WILL BE REMAINING AND THERE ARE STILL REIMBURSEMENTS TO BE MADE. BUT SHOULD VALUES GO DOWN IN A MANNER THAT WOULD NOT SUPPORT THE CURRENT DEBT STRUCTURE, BECAUSE IT IS A DEBT RATE, THE RATE WOULD HAVE TO BE SET IN ORDER TO PAY THOSE DEBT INVOICES.
WE WOULDN'T ISSUE ANY NEW DEBT IF THAT WERE TO HAPPEN, WE WOULD HOLD OFF. BUT WE WOULD HAVE TO SET THE RATE IN A MANNER IN WHICH TO MAKE THOSE DEBT SERVICE
[00:10:01]
PAYMENTS. >> AND JULIE WHAT'S THE
OUTSTANDING DEBT RIGHT NOW? >> IT IS $23,650,000.
>> THAT'S THE TOTAL WE'VE ISSUED TO DATE.
>> AND WE WON'T ISSUE ANY NEW. >> NO--.
IT SAYS YESTERDAY YOU GAVE ME THE NUMBERS.
HOW MUCH HAS BEEN ISSUED. $29,350,000.
THE REMAINING BALANCE LEFT TO SELL IS $23,650,000.
>> WE STILL HAVE A NEED TO REIMBURSE POULTY AND THAT COULD TAKE AS MUCH AS ANOTHER FOUR TO SIX YEARS.
MY MAIN REASON FOR APPROACHING THE COMMISSIONERS AND I APOLOGIZE FOR THE INTERRUPTION IS TO MAKE SURE THAT THE PUBLIC UNDERSTANDS THIS DOCUMENT, THIS RESOLUTION THAT YOU ARE APPROVING TODAY WILL BE FILED AT THE ATTORNEY GENERAL'S OFFICE. IT WON'T ONLY BE FILED IN OUR MINUTES BUT IT WILL BE FILED WITH THE ATTORNEY GENERAL'S OFFICE. AND I FELT LIKE THAT WAS AN IMPORTANTITE TOM NOTE FOR THOSE CONSTITUENTS.
>> YES. COMMISSIONER, THE REASON WHY IT'S GOING TO TAKE LONGER TO ISSUE THE DEBT IS BECAUSE WE HAVE TO MAKE SURE THE VALUES ARE ON THE GROUND.
AND ALSO TO TRY TO KEEP THE TAX RATE AT 29 CENTS AND NOT GO ABOVE THAT. SO IT WILL TAKE DIFFERENT TRONCHES OF DEBT OVER THE NEXT FEW YEARS LIKE WE ISSUED $4 MILLION THIS YEAR. WE'LL DO THAT AS VALUES-- BECAUSE THEY ARE STILL BUILDING HOMES OUT THERE AND THE DISTRICT IS STILL ADDING VALUE EACH YEAR WHICH WILL HELP ACHIEVE THAT GOAL OF GETTING ALL THE DEBT ISSUED.
SO WE'VE COMMUNICATED ALL OF THESE ASPECTS TO THE HOMEOWNERS INDIVIDUALLY, IF THEY GIVE US THEIR E-MAIL.
BUT ALSO IN MEETINGS AND DIFFERENT WAYS THAT WE'VE COMMUNICATED THROUGH THE C.A. TO THE NEIGHBOURHOOD REPS AND ALL OF THAT. OKAY?
>> THANK YOU. >> YEAH, THANK YOU.
AND THANK YOU FOR YOUR HELP ON ALL THIS.
>> THANKS JULIE. SO WE HAVE A MOTION AND A SECOND. ALL IN FAVOR? MOTION CARRIES 5-0.
* This transcript was compiled from uncorrected Closed Captioning.