Council - Special Meeting

Good evening, everyone. We'll start off tonight with some public hearings. First public hearing is on the ordinance for the town of Batesburg Lease will budget for the fiscal year 26-27. Do we have anybody signed up to speak? All right, since we have none, we'll close that public hearing. Brings us to the second, which is an ordinance for the five-year capital lease purchase. Do we have anyone signed up for that? Okay. Okay. I thought they did. Okay. All right. Do we have anyone that wants to speak? If not, we'll close that public in and move to the public hearing on the ordinance to establish sanitation rate. Do we have, is anyone here that would like to speak? If not, we'll close that public in and we'll call this special council meeting to order and start with the invocation given by Betty Hartley.

Let us pray. Father, we thank you for this and other opportunities together for decision-making for these, your people in the town of Batesburg-Leesville. And we stand on your word tonight, Proverbs 21 and 1. We know that the king's heart is in the hand of the Lord, and like the rivers of water, you turneth it with a silver you will. We ask, Father God, in the name of Jesus, that you turn the hearts of men for your people in accordance to your word. Your will be done in earth as it is in heaven. Amen. And God, we thank you.

Amen.

Amen.

And we'll, if everyone that can, will stand and join Bo Turner leading us in the pledge. at this time i'll entertain a motion to to approve the agenda we have a motion to approve the with a second to approve the agenda it's now open for discussion if there's no discussion we'll vote district one yes district two yes let's do three is not here district four four yes district five yes district six yes district seven yes district eight yes and the mayor vote chess the agenda is approved all right at this time do we have anyone that signed up for public public comments on the agenda if not then we'll move on And we'll bring up the first item on the agenda, which is on the second reading of the ordinance for the town of Batesburg-Gleesville budget for physical year 26-27. At this time, I will entertain a motion that we approve. I'll present a motion for that to approve that.

budget mr mayor i'd like to make that motion to approve option two of the budget where we're not increasing millage and a slight increase to business license all right we have a motion of a second second we have a motion and a second that we approve second reading of the ordinance

for budget for the fiscal year 2026 with no tax increase and a slight increase in business license to cover the expense on the budget. It's now open for discussion.

I just want to say on the record, I mean, I'm glad that we're not raising taxes. However, I'm just not crazy about the idea of putting the entire burden on businesses in town.

Any other comments?

Mr. Mayor, if I may?

Yes, sir.

I need clarification. This budget includes both the monies for salaries and the associated auxiliary cost for implementing the first phase of the compensation plan.

yes sir it's a three percent cost of living increase and about a 25 to 30 percent increase based off of that common class so that was the 94 000 total 74 for salaries and 20 000 for fringe benefits that was discussed in the work session in may so that is included in here yes thank you yes sir any further discussion mr mayor if i may yes sir

I'm a sticker for either playing by the rules or changing the rules it seems like in the council budget I believe we have monies for retirement and for insurance or just for retirement our council members being paid their retirement being paid

The ones that are in the state retirement system are required by law to contribute to the state retirement system. I believe it is an option for those that are not current members. I'm looking for HR. Is that correct? Yes.

I was given an option.

Yeah. So people that are, you know, I'm going to point to Chip because I know Chip is in the state retirement system. He does not have that option to opt out. He has to pay in. But those that are not in the state system can't opt out or in. Okay.

I know that was the option I took because I don't contribute.

So we do not have any members being compensated in that form that are not already members of the retirement program. No, I don't know specifically, but... Well, my concern is that when we reduced salaries two years ago, the actual ordinance says that we were reducing compensation, and the term was compensation, not salaries. The Attorney General has ruled time and time again that benefits other than salaries are unconstitutional unless specifically spelled out as part of the compensation ordinance. So I have had a concern that we might not be playing by the rules in this particular case. Thank you.

Any further discussion? If not, we'll proceed to vote. District 8?

District 8 votes no.

District 7? Yes. District 6? Yes. District 5?

Yes.

District 4?

Yes.

District 3 is not here. District 2?

No.

District 1? No. The mayor votes yes. The budget passes. This brings us to second reading of the ordinance for a five-year capital lease purchase. Do we have a motion to approve second reading of this ordinance?

So move.

Have a second? Second. A motion and a second that we approve the ordinance for a five-year capital lease purchase. It's now open for discussion.

And Mr. Mayor, we do have Brent here who can present that information. All right. On the dais are the three bids, but I'm going to pass it over to Brent for greater explanation.

Actually, it's going to be a little bit easier to read the font size. Thank you, Matt.

That's good for all the gray here up here. Right?

I've got some magnifier.

We'll see if this will do better a little.

Yes. Thank you. Well, you're welcome.

Mary counsel. Good evening. Thank you for having me. So about three weeks ago, the town sent out a request for proposals or request for offers for $1.1 million equipment lease purchase. There were 14 firms that were solicited. We received three proposals this morning. The two lowest bids actually came in from the same firm, which is South State. 4.14%, that's for five years, annual payments of principal and interest, level annual payments. That's a non-callable structure. Or 4.27%, callable in whole or in part at any time. Pretty straightforward proposal. Nothing terribly surprising. Some of the details are off to the right that I thought were notable. The interesting thing is, and I... i don't think i can recall a time anytime in my career where i saw option two that i've spelled out for you there typically with these lease purchases they treat it just like a loan it's fully funded all at once even if you're not ready to start spending the funds the funds will sit in a bank account with south state and that is an option that's option one but you're paying you're paying on the full draw of the loan beginning on day one under option two they've given the town the option of drawing down the funds over a six-month period. So if the town were to only draw down $100,000 on day one and then didn't draw down any more funds for the next six months or almost six months, The town would only be paying interest on that $100,000. Now, at the six-month mark, the balance of the loan needs to get drawn down. Right now, it's authorized for another million dollars for a total of $1.1 million. And then the loan would fully amortize over the five-year period. But another thing that's baked into the South State bid, and I've confirmed this, is... that if the town determines at the six-month mark that the cost of the equipment has come in less than what we're anticipating, we can downsize the total amount of the loan, reamortize it over that five-year period so that the town's not borrowing any more than it has to. it's a very very aggressive bid i mean i've never seen anything like that before so the the rate looks good the terms and conditions relative to market conditions i think are very favorable uh... my recommendation would be to go to south state there are two options there uh... as between the two i would recommend the lower non callable bid unless you all think you're gonna be paying off the equipment in the next five years with cash I just don't see a scenario where interest rates are coming down low enough that you would be able to refinance this and save any money doing it. But either way, if you wanted that call option in there, it's still the second lowest bid overall. And I'm happy to take any questions.

If I may, Brent, can you explain, you and I spoke last week about the $1 million as opposed to 1.1 based off of the budget that was approved, that we can just adjust that, go into closing at $1 million as opposed to 1.1.

We can. So that was part of the terms and conditions that we sent out with the bid packages, that $1.1 million is what we're targeting. But when the time comes to actually structure the final principal and interest payment structure, the amount that the town wants to borrow, we can downsize that as much as you want to. We can take it down to $1 million and whatever the needs are. So we're not locked in and having to borrow $1.1 million. We can downsize it based on what actual needs are and also to fit within the current budget.

All right, can I ask a question to you? This, this is a decision. How do we vote on this? This particular part of so the motion is to approve the thing, but how do well, how do we assign which 1 we're voting for?

So, based off of. The vote of council for the zero millage increase, that was with a $1 million financing that lowered that total payment. So I would just recommend that the motion, you specify a maximum of $1 million lease purchase agreement to max it at $1 million.

Mr. Mayor? Yes. If I may, I'd like to propose that we amend the motion to state that we select that the amount would be $1 million with the second option of a four point with a non callable loan from South State. South State.

Yes, sir. That would be the best. Okay.

To be very specific. So whoever made the motion should amend.

Well, we can handle it. If you move to make an amendment, we'll deal with that. Do we have a second to the amendment?

Can I second an amendment on a motion that I made?

sure okay there's my second yeah you can you know we had discussion about this in a previous meeting about we could not amend motions why am I my position was you can according to Robert's Rules of Order yes and that has been verified by research you can amend motions and anybody can amend the emotions here so we got that straight so we'll deal with you I do know how All right, we have an amendment to the motion and a second that we go to the non-callable option with South State Bank. Yeah, 4.14. That amendment is now open for discussion. There's no discussion. We'll vote. District 1? Yes. District 2? Yes. District 3? Not here. Not here. District 4?

4, yes.

District 5?

Yes.

District 6?

Yes.

District 7? Yes. District 8?

District 8 votes yes.

And the mayor votes yes. That brings us back to the motion as amended that we approve second reading of the ordinance Nope. I'm sorry. The ordinance of five-year capital lease purchase going with the South State option of a non-callable with 4.14%. The amended motion is now open for discussion.

Call for the question.

Questions called for. We will now vote. District 1? No. District 2? Yes. District 4? four no district five yes district six yes district seven yes district eight district eight votes no the mayor votes yes motion carries All right, this brings us to the 3rd item on the agenda, which is the 2nd reading of the ordinance to establish sanitation, right? You have a motion that we approve 2nd reading. So, we have a 2nd check. Who said that?

Yeah.

All right, we have a motion and second that we approve second reading of the ordinance establishing the sanitation rate. It's now open for discussion. If there's no discussion, we'll vote. District 1? Yes. District 2? Yes. District 3? District 4?

4, no.

District five.

Yes.

District six.

Yes.

District seven. Yes.

District eight.

The mayor votes yes. Second reading is approved. Uh, that's all of the items that we have on the agenda. And this is a special meeting. Nothing else can be discussed. Do I entertain a motion to adjourn?

I move.

We adjourn second. Non-debatable motion. District 1? Yes. District 2? Yes. District 4?

Yes.

District 5?

Yes.

District 6? Yes. District 7? Yes. District 8? And the mayor votes yes. We are adjourned at 7-18.