The Leeds News (Leeds, AL)

Local News

March 15, 2010

Moody hires attorney to restructure bonds

Moody — The City of Moody approved hiring an attorney, Frank D. McPhillips of Maynard, Cooper and Gale, to represent the Governmental Utility Services Corporation (GUSC) Board during Monday night’s meeting.

GUSC Chairman Mayor Joe Lee asked for the approval of the city council to hire McPhillips in order to seek advice in restructuring bonds. “Those bonds are at a high rate of interest right now,” he said. “We have been advised by our representation that we need to look into refinancing those bonds to get a lower interest rates and lower payments.”

Lee added that lower bond payments could possibly offset an increase in sewer rates in the future.  

The loan to the GUSC was at $7.5 million. Lee said $750,000 of that loan was set at an interest of 10 percent and the rest was at seven and a half percent.  “We are looking at trying to restructure to get that down to four and a half to five percent,” he said. 

The city council also heard from the St. Clair County Department of Human Resources Financial Support Advisor Beverly Abbott concerning a federal job program in which the City of Moody recently enrolled.

It is a subsided employment program that opens up opportunities for families in the county.  “The subsided employment program became statewide in December,” said Abbott. “The funds are from the American Recovery and Reinvestment Act stimulus dollars.”  Abbott added that 80 percent of the cost comes from the stimulus dollars and that the State of Alabama uses funds from the TANF Block Grant and in-kind matches to pay the remaining cost.

“Any employer that is interested in hiring a family assistance recipient can get 100 percent reimbursement of the wages for a period of six months,” she said. “The program is only expected to last until September 2010.”

Abbott added the City of Moody hired some people in Feburary who will work for the six-month period as long as things go well on both sides. After the six-month period, there is an option to extend employment for another couple of months to get them to September.

There are approximately 43,330 Alabamians who are currently receiving financial assistance through the Family Assistance Program each month. Of this number, approximately 10,000 are adults who are required to participate in the JOBS Program and may be eligible to work.

“This program is working well for Moody,” said Abbott. “The idea is to get people working and help employers with some positions they may have. The employer is not obligated to keep the person after six months or the certification period. The employer is not obligated to keep the person if they are not happy with their performance. We are asking that employers consider giving people the opportunity to be employed.”

Employers who are interested in participating in the program are asked to contact their county DHR office or their local Career Center.

Anyone who is underemployed or unemployed can go to his or her local Career Center for assistance in finding a job. Applicants can also visit www.joblink.alabama.gov to see available positions.

“It is appears to be working well for our city,” said Lee. “We have seven employees now. Two are in Park and Recreation, one in administration, one in police, one in fire, one in the library and one at the senior center.”

There are five employers in the county participating in the program at this time. “We would love to get 15 more people employed with various employers throughout the county,” Abbott said.

Other items included:

• adopting Resolution R2010-03-08 to join all the St. Clair County cities, schools and commission in adopting the Multi-Hazard Mitigation Plan that has been prepared in accordance with FEMA requirements. (If not adopted , the city would not be eligible for disaster funds and grants at the time of an unexpected catastrophe);

• approving to promote John Tyson to rank of Captain over B shift at the fire department;

• approving to hire Jeff Rogers for the firefighter/EMT position;

• approving the annual lease payment of $8,993.67 for the radio system in the fire department;

• approving Miss Alabama as keynote speaker at the annual DARE program on April 16 at First Baptist Church totaling $350;

The Moody City Council will meet for their next regular session on Monday, March 22 at Moody City Hall starting at 6 p.m.

 

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