Cuero Council plans to seek lower bond interest rates
by by Glenn Rea, Record Editor
(Posted 1/27/2010 08:39 am)
Cuero City Council discussed a couple of items at their special meeting last week that should improve the city’s bottom line.
Meeting with a financial advisor Tuesday evening, Council agreed to move forward on a plan to take advantage of lower interest rates on bonds and look at what the City charges companies to use Cuero utility poles.
Other items discussed included plans for the downtown revitalization grant.
Anne Burger Entrekin of FirstSouthwest in San Antonio met with Council to explain how refunding the remaining balance of two 1999 bond issues by City of Cuero can mean a savings to the city. She said the remaining amount of two bond series issued by Cuero totals $1,525,000.
By taking advantage of lower interest rates in today’s market compared to the rates in 1999, the city will save about $62,000 as it retires these bonds over the next 14 years.
As part of the process to refund the outstanding principal and interest on these bonds, Cuero had to submit financial information about the City to Standard and Poor’s Financial Services.
In its review of Cuero, the company noted the city has a “strong financial position” partly because it can transfer income to its general fund from utility funds. The analysis also noted the city has a low overall debt burden.
Not so flattering notes in the analysis said the city has limited economic and property tax bases and low wealth and income indicators.
Later in the meeting, City Manager Raymie Zella presented information about what the city charges phone and cable television companies to use Cuero’s utility poles.
He said it is estimated the city receives about $14,000 a month by allowing other companies to attach their phone and cable lines to the city’s poles. However, Zella said the rates and contracts with those companies are fairly old. He said by updating those rates, the city could see revenue increase to about $35,000 a month.
Council agreed to have Zella name a company that will help count the number of city owned utility poles and renegotiate new agreements.
Cuero was recently chosen for a downtown revitalization grant that will result in improved sidewalks along certain parts of the downtown area. In preparation for that work to begin, it was agreed for the city to name an administrator for that project. The city will be taking applications for that work.
In other business Council agreed to spending about $4,000 to replace a scoreboard at the Little League Complex that was damaged by high winds recently. The scoreboard was insured and the cost will be offset by that insurance payment.
City Manager Zella noted a major water line broke here recently and will need to repaired. It is located at the intersection of North Esplanade and Reuss Boulevard. The cost will be about $35,000.
by by Glenn Rea, Record Editor
(Posted 1/27/2010 08:39 am)
Cuero City Council discussed a couple of items at their special meeting last week that should improve the city’s bottom line.
Meeting with a financial advisor Tuesday evening, Council agreed to move forward on a plan to take advantage of lower interest rates on bonds and look at what the City charges companies to use Cuero utility poles.
Other items discussed included plans for the downtown revitalization grant.
Anne Burger Entrekin of FirstSouthwest in San Antonio met with Council to explain how refunding the remaining balance of two 1999 bond issues by City of Cuero can mean a savings to the city. She said the remaining amount of two bond series issued by Cuero totals $1,525,000.
By taking advantage of lower interest rates in today’s market compared to the rates in 1999, the city will save about $62,000 as it retires these bonds over the next 14 years.
As part of the process to refund the outstanding principal and interest on these bonds, Cuero had to submit financial information about the City to Standard and Poor’s Financial Services.
In its review of Cuero, the company noted the city has a “strong financial position” partly because it can transfer income to its general fund from utility funds. The analysis also noted the city has a low overall debt burden.
Not so flattering notes in the analysis said the city has limited economic and property tax bases and low wealth and income indicators.
Later in the meeting, City Manager Raymie Zella presented information about what the city charges phone and cable television companies to use Cuero’s utility poles.
He said it is estimated the city receives about $14,000 a month by allowing other companies to attach their phone and cable lines to the city’s poles. However, Zella said the rates and contracts with those companies are fairly old. He said by updating those rates, the city could see revenue increase to about $35,000 a month.
Council agreed to have Zella name a company that will help count the number of city owned utility poles and renegotiate new agreements.
Cuero was recently chosen for a downtown revitalization grant that will result in improved sidewalks along certain parts of the downtown area. In preparation for that work to begin, it was agreed for the city to name an administrator for that project. The city will be taking applications for that work.
In other business Council agreed to spending about $4,000 to replace a scoreboard at the Little League Complex that was damaged by high winds recently. The scoreboard was insured and the cost will be offset by that insurance payment.
City Manager Zella noted a major water line broke here recently and will need to repaired. It is located at the intersection of North Esplanade and Reuss Boulevard. The cost will be about $35,000.
