Moody buys sewer bonds from GUSC
Published 10:45 am Thursday, June 30, 2011
The city of Moody is one step closer to achieving their goal of controlling their sewer system.
During their regular meeting Monday, the Moody City Council agreed to pass an ordinance which allows the city to increase their line of credit with Regions Bank to purchase outstanding bonds issued by the Moody Government Utility Service Corp. (GUS), which oversees the sewer system.
The city of Moody will be able to pay approximately 3.5 percent on the bonds, compared to 7 percent and 10 percent previously paid.
“We approved this ordinance in February, but we’re having to increase it to buy all the bonds,” said Mayor Joe Lee.
As a result of the purchase, the city of Moody will officially own the sewer system.
“We’ll still have the GUS, but all decisions they make will be brought to the City Council for approval,” Lee said.
The city of Moody sold its sewer system to Birmingham nearly 20 years ago.
In September, the group terminated an operation agreement with Alabama Utility Services (AUS) and approved a temporary service agreement with Southwest Water to maintain the sewers on a day-to-day basis.
In the future, the city of Moody may take full control of day-to-day operations.
In other actions:
— The Moody City Council supported Fire Chief Joe Nobles in discouraging fireworks during the Fourth of July holiday. Nobles reminded the community that anyone who causes a fire is responsible for damages, as well as the equipment and manpower used by the Fire Department to put out the blaze, due to the no-burn order.
— Barfield, Murphy, Shank and Smith were approved to perform the city’s upcoming audit.