072853$0 MINUTES
City Commission, Sanford, Florida, July...2..8....~.~....8...~. M. 19~..~. ....
The City Commission of the City of Banford, Florida, met in adjourned session
at the City Hall in the City of Sanford, Florida, at 8:00 o'clock P.M. July 28, 1953.
Present:
Commissioner Randall Chase, Mayor
, J.D. Cordell
" John D. Ivey
" John L. Kadet
City Clerk H. N. Bayer
City Manager Thcs. L. Lemon
Meeting called to order by the Chairman.
The Commission then proceeded to a lengthy discussion with Carl Nelson of Bullivan,
Nelson and Goss, Inc., Wilson Holt of Goodbody and Company, W. T. Anderson of Anderson Cook
Company, fiscal agents, and Robert M. Angas, Consulting engineer, with reference to financing
the proposed sanitary sewerage and waterworks'improvements.
The fiscal agents submitted the following proposals and suggestions for financing the
proposed water and sewer revenue bonds, which were taken under advisement for further study
and consideration, with request that additional similar proposals be prepared and submitted
which could also cover cost of including a sewage treatment plant in the project:
July 22, 1953
Honorable Mayor and City Commission
City of Banford, Florida.
Herewith are schedules we .have prepared concerning financing of Banford's proposed
Water and Rawer Revenue Certificate Issue. Bchedule I and Bchedule II reflect
water billings during the past 12 months but exclude an estimate 138 water customers
residing outside the City limits and in certain outlying areas within the City where
the cost of extending sanitary sewers would be economically unsound from a financing
standpoint. We have also eliminated 237 units in the Federal Housing Project and
include this project as one sewer customer based on total monthly water billings.
There are 728 commercial sewer customers in Bchedule I, and 2,775 single residence
customers listed in Bchedule II. Upon completion of new sewer extensions and
after making all adjustments, we are of the opinion that an additional 400 sewer
customers should be added to the 3,502 customers listed in the two schedules. Your
consulting engineers are preparing an up-to-date house count and the total number of
sewer customers may be increased.
In order to arrive at equitable monthly sanitary sewer charges, we have adjusted the
average water billings for the past 12 months in various brackets which eliminates
our estimate of water sold that does not enter the sanitary sewers from commercial
establishments. Also cert~n adjustments in residential water sales have been made
to offset the abnormally high water billings due to very dry weather during two
months in the past year. After further study and analysis, the final setup for
sewer service charges should be adjusted so that all sanitary sewer users will be
on a proper and equitable basis. Listed as commercial are all buildings not
classified as single residence.
In a letter dated June 18, 1953, your consulting engineers state the cost of
selling water, including amortization of capital waterworks and system improve-
ments, is approximately 19~ per each 1,000 gallons. By eliminating the cost of
amortization of capital improvements, the actual cost will then be somewhere around
13~ to 155 per each 1,000 gallons of water sold. It is therefore obvious, that
substentlal quantities of water are being sold to the largest users at a Substantial
loss. It is our understanding that the existing water contracts between the City
and the Navy Department and the Housing Project cannot be revised uoward unless
there is a general rate revision for all users. We offer, as a suggestion, a new
schedule of water rates which will materially increase total revenues to the Water
Department without inflicting any hardship or penalty on any individual user. To
illustrate, the present minimum water bill is $2.20 per month, plus 10% utilities
tax equals $2.h2 monthly. The suggested new rate of $2.27 minimum, plus 10%
utilities tax will amount to an even $2.50, an increase of only eight cents per
month to the minimum user, distributed seven cents to the Water Department and
one cent to the Utilities Fund. As will be noted, sewer service charges and
revenues are based upon these suggested new water rates.
At the present time, fire hydrant rental is $2,550 a year~ the same charge that has
been made for many years past and amounts to only around $9.00 per hydrant per year.
We recommend the fire hydrant rental be increased to $36.00 per hydrant per year.
Based on 273 present hydrants and 20 new hydrants recommended by your consulting
engineers, will produce $10,548 annually. This is not a high charge and really
helps to improve the overall revenue statement of the Water Department.
At our suggestion your consulting engineers revised cost estimates as set forth in
their letter of June 15, 1953, to the figures contained in their letter of July ?,
1953. This is a reduction in cost estimates of slightly in excess of $100,000 by
eliminating at this time sewer extensions into sparsely built up outlying areas.
MINUTES
City Commission, Sonford, Florida,. Jul.y 28 at 8 P. ~[. 9 ~...
revenue certificate issues in three different amounts and the ewtimated annual
average debt service requirement depending on the total amount of certificates issued.
We recommend that the City pledge the gross revenues derived from the operation of
the sanitary sewer system to debt service requirements. We further recommend that
the ~ater Department's operating profit, after deducting debt service requirements
on outstanding Series "B" ~2nds, and also utilities tax collections, after deducting
debt service requlrements/~tstandlng Stadium Bonds, be pledged to 8sbt service
for the proposed Water and Sewer Revenue Certificate Issue. It is our considered
opinion that Sanford must make the strongest possible security pledges in order
to market this new issue and especially so to realize the lowest net interest cost
to the City. The ~% annual interest rate used in computing annual debt service
requirements is an arbitrary figure. The actual interest rate will be determined
at the time the revenue certificates are sold at public sale. This new certificate
issue will.contain an open-end clause which will permit the issuance of additional
equal lien obligations for water and sewer improvements. The authorizing proceedings
will also provide for callable provisions so the certificates can be redeemed prior
to the stated maturity dates.
For the fiscal year ended September 30, 1952, the City expen~ed $25,391 for sewer
maintenance and operation. Upon majority rehabilitation of the present sewer system
a substantial portion of this maintenance expense shoul~ be eliminated. However
your consulting engineers will provide new maintenance and operating estimates
required after completion of the proposed sewer improvements. It is hoped sewer
maintenance and operating expense in each of the next few years wil~ not materially
exceed the amount expended in the cast fiscal year.
In a letter to your City Manager, dated June 13, 1953, we recommend that you take
immediate steps to materially increase the total assessed valuation of Sanford.
While the new certificate issue will be payable only from revenue~; nevertheless,
our suggested increase in assessed valuations to not less than'80% em~ fair market
value will show greater economic stability and materially lessen the ad valorem
tax debt ratio. In our opinion this will further help to secure the best possible
market price at the time the certificates are offered for sale~
Several years ago, Sanford received a Federal grant of $21,530 for sanitary sewer
planning to be repaid when actual construction is undertaken. The City's auditors
have set this up es a tentative contingency item and we have not taken this sum
into consideration in computing the amount of revenue certificates to be issued.
GOODBODY & COMPANY
SULLIVAN, NELSON & GOSS, INC.
ANDERSON COOK CO¥3ANY, INC.
BY
CLN:mc
SCHEDULE I
CITY OF SANFORD,, FLORIDA.
Suggested New Water Rates.
Commercial
Gallons
Per
Month
4,000
5,000
6,000
7,000
8,000
9,000
lO,000
ll,000
12,000
13,000
14,000
15,000
16,000
17,000
18,000
19,000
20,000
21,000
22,000
23,000
2b,000
25,000
26,000
27,000
28,000
~0,000
~5,000
~0,000
New
Water
Rates
$2.27
2.62
2.97
3.32
3.67
~.02
~.~7
~.67
~.97
5.27
5.57
5.87
6.17
6.47
6.77
7.07
7.37
7.67
7.97
8.27
8.57
8 87
9 17
9 ~7
9 77
l0 37
ll 87
1~ 37
Number
Customers
272
62
~.0
12
12
2
2
l?
5
Water Rates
Monthly
Production
$ 597.$~
112.66
184.1~
1~6.08
150.$7
168.85
175.80
65.38
7~. 55
79.05
66.8~
70.~
80.21
12.9~
20.31
63.63
66.33
38.35
23.91
16.55
8.57
150.79
9.17
9.h7
29.~1
51.85
59.B5
86.85
91 ~ R1
MINUTES
City Commission, Sanford, Florida, July 28 at 8 P.M. 19 5~.
Suggested New Water Rates Cont'd
65,000
92,000
100,000
200,000
225,000
300,000
350,000
460,000
3,962,000
20.12 1 20.12
26.87 2 53.74
28.87 6 179.22
43.87 1 43.87
~7.62 I 47.62
58.37 I 58.37
65.37 1 65.37
80.77 I 80.77
bo2.57 1 ~02.57
3,810.8~
x 12 i $45.730.08
Sewer c~rge,
Sewer ' ·
cilar~e,
Sewer charge,
percentage of water bill 66 2/3%
percentage of water bill 70%
percentage of water bill 75%
30,483.67
32,011.00
34,297.50
Suggested Water and Sewer Rates
GALLONS New Number Sewer
per ~ater Customers P~tes
Month Rates 6_~6_2_/~%_
1. 4,000 $2.27
2. ~:000 2.62
3. 000 2.97
4. 7,000 3.32
5. 8,000 3.67
6. 9,000 4.02
7. lO,OOO 4.37
8. 11,00o 4.67
9. 12,oo0 4.97
10. 13,000 5.27
ll. All Over
1478 $1.50
$17 1.74
288 1.98
180 2.21
111 2.~4
58 2.68
57 2.91
47 3.11
2~ 3.31.
13 3.50
lOl 3.50
Sewer Rates
Monthly
Prodjqction
$ 2,217.00
725.58
57o.~4
397.80
2?0.84
155.4~
165.87
146.17
79.44
45.50
38
x 12
Minimum Sewer Rate $1.50
Meximum Sewer Bate 3.50
Additional Sewer Connections 400
Average
1.60
650.0o
x 12
Total Estimated Sewer Revenues
Sewer
70%
Rates
Single Residence
Commercial
Additional Connections
Sewer Rakes
Monthly
Production
Sewer Rates
75%
61,528.00
30,484.00
7,680,0,0
99,692.00
Sewer Rates
Monthly
Pr__o_dj~ction
5.
6.
7.
8.
9.
10.
ll.
Mi~.
Max
$1.60
1.83
2.o8
2.32
£.57
2.81
3.06
3.27
3.~8
3.70
3.70
1.60
3.7O
$2,364.80
763.11
599.04
417.60
285.27
162.98
174.42
153.69
83.52
48.10
x 12
$1.70
1.97
2.23
2.~9
2.75
3.02
3.28
3.50
3.73
3.95
~.95
1.70
3.95
$2,512.60
821.49
642.24
448.20
305.25
175.16
186.96
164.50
89.52
51.35
398.95
5,796.22
x 12
Add'l
1.70
680. co
x 12
1.80
720.00
x 12
Total Estimated Sewer Revenues
Single Residence 65,114.00
Commercial 32,011.00
Additional Connections 8,160 00
$lO5,285~oo
69,554.00
34,297.00
8,640:,00
112,$91.00
MINUTES
City Commission, Sanford, Florida, July 28 at 8 P.M. . 9 53
$3
CITY OF SANFORD, FLORIDA
Schedule III
Estimated Total Sewer Revenues
First Full Year Operation Afer Completion of Proposed Sewer Improvement
Single Residence
Commercial
AdSitlonal Connections
Sewer Revenues Sewer Revenues Sewer Revenues
Based on Based on Based on
66 2/3% ?o% ?5%
Of Water Of Water Of Water
Billings Billings Billings
$ 61,528 $ 65,115 $ 69,555
30,485 32,011 34,297
~ 8,160 , 8,6~,0
105,285 112,491
Estimated Construction Costs
Ninlmum Sewer Improvements
Water Improvements
Construction Cost plus 15%
Interest on Certificate Issue
TOTAL
for l~ Yrs
or
$ 1,100,000
180,000
1,280,000
92,000
1,372,000
1.375.000
Sewer Improvement8
Water Improvements
Construction Cost plus 15%
Interest on Certificate Issue for l~ Yrs
Total
or
1,200,000
180,000
1,380,000
99L000
l, ~79,666
1,480,000
Sewer Improvements
Water Improvements
Construction Cost plus 15%
Interest on Certificate Issue
TOTAL
for 1~ Yrs
1,300,000
180,OOQ
1,~80,000
107,000
1,587,000
or 1.590.000
Estimated Debt Service Requirements
Principal to Mature in 28 Annual Payments
Interest Figures at ~% Per Annum
$1,375,000 Certificate Issue -- Annual Average Debt Service $ 87,500
1,580,000 Certificate Issue -- Annual Average Debt Service 95,000
1,590,000 Certificate Issue -- Annual Average Debt Service 101,000
Basins Div.,
Letters submitted from Paul W. Richards, Public Health Engineer, Southeast Drainage/Water
Polution Oontrol, U. S. Public Health Service, and David B. Lee, Director Bureau of Sanitary
Engineering, Florida State Board of Health, recommending that adequate sewage treatment facilities
be included in the proposed sewerage
an off-sho~ outfall.
improvements instead of discharging the raw sewage through
On motion of CommlssionerCordell, seconded by Commissioner Stamper and carried, the Cpm-
mission next Confirmed, subject to the approval of the
Florida State Bank, dated July 23, 1953:
City's auditors,
the following letter to
Florida State Bank
Sanford, Florida.
Att: Mr. T. E. Tucker, President
Gentlemen:
We confirm an indebtedness to Robert M. Angas and Associates to the extent
of $5,600.00, and hereby agree to make a provision up to that amount in our
1955 Budget in order to liquidate prior to December 31, 1953, any advances
that you may make to Robert M. Angas and Assoc~ tee for the account of the
City of Sanford.
In event any such advances are made please advise us from time to time the
amount advanced on every occasion. In no event is the amount to exceed
$5,60o.00.
84
MINUTES
City Commission, Sanford, Florida, July 28 at 8 P.M. 1~53
Yours Very truly,
CITY OF SAkFORD
S/ Randall Chase,
S/ W..H. 8temper,
John D. Ivey,
S/ John L. Kadet,
S/ J. D. Cordell,
Mayor
Commissioner
Commissioner
Commissioner
Commissioner
There being no further business the meeting then adjourned until 8:00 o'clock P.
AUgust 3, 1953.
ATTEST:
gm
City~ Clerk
MAYOR