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Red Bay City Council approves interest rate bid for rec center financing

In its regular meeting Dec. 1, the Red Bay City Council approved the only bid received for the financing of the Red Bay Recreation Center.

The council accepted a split bid offer from Valley State Bank, which will serve as the lead bank and sell a 50 percent participation to Community Spirit Bank.

This is a 2.65 percent fixed interest rate over 120 months based on an amortization of 180 months – which will mean, based on a loan amount of $425,000, a monthly payment of $2,865 for the first 10 years, with monthly payments to begin 30 days after closing the loan. There is no penalty for pre-payment.

The payment will be coming from the general fund. Expenses thus far have been coming from the industrial development fund, and that will be paid back.

In other business, the council discussed and approved the Fiscal Year 2021-2022 Financial Forecast, noting an approximate deficit of $54,854 for this past year, with projections to be $90,172 in the black for the coming fiscal year.

The council went into an executive session to discuss concerns regarding the good name and character of an employee or employees and made no votes during or following the executive session.

Park and Recreation Director Dean Hubbard reported 19 teams have been assembled from the basketball signups, noting that uniforms have been ordered. He said aerobics signups have started.

The council also:

  • Selected Tracie Clark to fill Anne Vinson’s position on the Tree Commission, a six-year term with a new expiration date of August 2027.
  • Approved reappointment of Jerry McKinney and Joe Beasley to the Industrial Development Board. The positions are six-year staggered terms with a new expiration date of Dec. 1, 2027.
  • Approved re-appointment of Scotty Kennedy and Pat Nelson to the Beautification Committee for five-year terms with a new expiration of Dec. 19, 2026.
  • Approved roadblock request on behalf of Red Bay First United Methodist Church Youth Group for the month of April 2022.
  • Approved school expenditure request of $12,921 for 18 tables and 90 chairs. This is to furnish the new building, and it includes shipping costs. The money was left from the funds set aside for the building.

The next meeting of the Red Bay City Council will be held at Red Bay City Hall, 203 Fourth Ave. SE, Dec. 15, with a work session at 3 p.m. and the council meeting at 3:30 p.m.