Glenwood Herald

Council approves $5.5 million bond issue for Great Southern May 7, 2008 - No reporter cited

By Michael G. Fox
Editor

GLENWOOD – The City Council approved Ordinance 08-07, the Great Southern Wood - Glenwood, Inc. $5.5 million bond issue in their regular meeting Monday night and hired a new police chief.

They also approved Ordinance 08-05, which raises city water and sewer rates by 3 % each year.

Both ordinances had emergency clauses which necessitates all three readings and approval so they can go into effect immediately.

The bond issue will be used to buy and renovate the existing treatment facility that the company purchased from Bean Lumber Co. last December.
The entire ordinance was read by Tom Legett, Great Southern’s legal council. The first reading was approved 4-0.

Legett told the council that one bond will be sold to Compass Mortgage Corporation, payable over 15 years. This is issued on a tax exempt basis.

The bond will be issued for between $5 - 5.5 million.

“What if you want to do another $10 million in improvements after that?” asked councilmember Billy Plyler.

“Assessors in each county handle it differently, we would have to check with the county,” Legett said.

This means the county would have to assess whether the property and facility were worth $10 million in assessed value. If so, more bonds could be issued for additional construction.

“Is the inventory tied in with the tax issue?” Centerpoint superintendent Lewis Diggs asked.

“No. If it ever sells, the lease would be assigned to the buyer,” Legett said.

The second and third readings were approved by 4-0 votes as well as the emergency clause, which enables the ordinance to go into effect immediately. (The ordinance will probably be published in next week’s paper.)

Mayor Ron Martin read a letter from Police Chief Shaun O’Neill.

O’Neill has been out on sick leave for two months and the letter was his resignation because of health reasons.

O’Neill was Chief of Police for five years. His resignation was effective April 29.

“I would like to see Randy made Chief of Police,” Martin told the council.

The council approved Randy Reid as the new chief by a 4-0 vote. His salary will be the same as O’Neill’s.

“This has really messed our budget up this year.” Martin said.

“Now I hope it will straighten out,” he added.

Councilmember Bettye Henderson gave the second

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