The Springfield City Council approved a resolution to accept a loan from the Georgia Environmental Facilities Authority’s Georgia Fund with financial conditions.
“One of the conditions that GEFA had was that we must maintain a reserve to back up the note that we sign,” Mayor Barton Alderman said.
City Manager Brett Bennett said it was a condition GEFA required when the city was awarded the second loan for the waterline project.
“It just wasn’t included on the first resolution they sent us,” he said. “It was an oversight, and we just need to approve it with that condition.”
The resolution requires Springfield will be required to have a total of $501,000 in a separate account and for the funds to be in place until the loan is paid or GEFA lowers or eliminates the requirement.
Springfield is required to have $250,500 by Dec. 31, 2009, and the full $501,000 by Dec. 31, 2010.
Bennett said there are funds set aside for debt services reserves, and the funds can be used toward the required reserve amount.
“They’re thinking is if something happens and you can’t make the payments, they want to know that that money is there to back it up,” he said.
Bennett agreed that the city can come up with the funds required by the agreement.
Council member Kenny Usher asked if there were any concerns with the agreement.
“Not unless development stays at a dead halt for two more years, which is possible, but a lot of people are going to have a lot of problems if that happens,” Bennett said.
Bennett said the city does not currently have that much money in reserve.
“We don’t have (a) choice — if we want the money we have to do it,” Hinely said.
The council voted to have Council Member Max Neidlinger serve as mayor pro-tem for the year, and appointed City Clerk Linda Rineair as the election supervisor.
Also, the Springfield Revitalization Corporation is going to sponsor a Valentine’s Day dance on Feb. 14 from 7-11 p.m. at the Mighty 8th Air Force Museum in Pooler. The cost is $50 per person. The price includes dinner.
Usher said there will be a DJ and live music and proceeds will go to the Mars Theater project.
“If you don’t like to dance and don’t like to eat, we appreciate your donation anyway,” Hinely said.
Bennett told the council members there will be a public meeting on Feb. 2 at 7 p.m. for the permit for the spray field, and a public hearing on the permit the same night at 8 p.m.