The action took place during the May 27 meeting and will come to public hearing at an unspecified date.
The loan, as described by City Manager Morris Madrid during the meeting, did not match loan-ordinance documents published on the City’s website.
During the meeting City Manager Morris Madrid spoke about refunding an old debt of about $1,506,000 principal from 2009, but the city packet contained an ordinance that states the 2009 debt is for about $1,076,000 principal.
Madrid said the “new money” to be added to the loan is about $1,170,000, but the city packet ordinance states there is no new money to be borrowed, only the 1,076,000 old debt to be refunded.
The Sierra County Sun noted the lack of information for the old and new loans and emailed City Commissioners on May 23 warning them of holes in the city packet. The lack of information made it impossible for the public to know if the refinancing is a good idea or to give informed public comment.
The Sun asked City Commissioners to forward the old- and new-loan debt schedules if they had them, but none responded.
During the May 27 meeting, Madrid referred to the debt schedules, making it evident the City Commissioners were looking at those documents. The Sun asked City Commissioners again to forward the loan particulars in the interest of transparency and public participation, but got no response.
Madrid said, during the meeting, the City Commission had already approved the refinancing/refunding of the 2009 loan “last fall.”
The Sun found it had been approved last summer, June 26, 2019, according to meeting documents on the City’s website.
The 2009 loan was originally for $2.55 million principal. The refinancing that evidently did not take place, despite board approval, was to refund the old loan’s $1.56 million remaining principal. Nearly $1 million cash or “new money” was added to the debt, to fund “improvement projects.”
Madrid said the City Commission discussed what the new money would be used for last fall, naming the “swimming pool and parks.”
City Commission minutes show the board went on a “retreat” to discuss projects, ensuring the public was not part of the decision-making process.
It appears the current board is equally content to keep capital- and department-projects discussions behind closed doors.
During the May 27 meeting the City Commission rubber-stamped a preliminary budget for $22 million that did not include capital projects or department projects, meaning the final figure will likely be much higher.
The May 27 meeting was the first public meeting that had the budget on the agenda. The final budget will be presented July 15, Madrid said. If City Commissioners have changes or input to give on the budget, Madrid said, they should contact him in the interim, leaving the budget process behind closed doors, which includes the upcoming year’s capital and department projects.