Hondo Anvil Herald (Hondo, Tex.), Vol. 115, No. 51, Ed. 1 Thursday, December 20, 2001 Page: 2 of 36
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Page 2, The Hondo Anvil Herald, Thursday, December 20, 2001
candlelight service set
The Youth of St. Paul Lutheran
Church will present Voices of
Christmas at 7 p.m. on Sunday
Dec. 23, in the church's Activity
On Christmas Eve at 7 p.m. the
church will hold a candlelight
worship service at 7 p.m.
MC Health Unit announces
Medina County Health Unit will
have no immunization clinic on
Monday, Dec. 31.
Clinics will resume Jan. 7 from
7 to 11 a.m. and I to 3:30 p.m.
T-shirts have arrived
The Project Graduation t-shirts
have arrived. Anyone who ordered
shirts may call Sue Long at 741 -
5221 to make arrangements to pick
their shirts up.
The Relay for Life 2002, Medina
County Committee, is sponsoring
luminarias for Christmas. They
will be available for purchase at
The Hondo National Bank and will
be displayed in the bank lobby.
Gift cards will be sent for Christ-
mas and luminarias will also be
displayed at the Relay for Life on
May 3-4. Your $5 donation may
honor a loved one who is fighting
cancer or commemorate a loved
one who has lost their battle.
Book Mark closed
The Book Mark, sponsored by
the Friends of the Hondo Public
Library, will be closed throughout
D'Hanis Christmas Dance
The annual D'Hanis Christmas
Dance will be held Tuesday, Dec.
25, at St. Dominic's Hall. See ad
Goal Post Oak
Hondo ISD is selling customized
plaques made from the wood of the
big oak tree near the south goal
post which was damaged in the
Oct. 12 storm. For further informa-
tion, call the Hondo ISD office at
Baby & Me at the library
All parents with infants are
welcome to attend "Baby & Me," a
lapsit program at the Hondo Public |
Library on Thursday mornings at 10
a.m. Sessions last about 30 minutes.
The program is free and no reserva-
tions are needed. Call the library,
426-5333, for more info.
Adult basic education
offered at Woolls
Adult basic education (GED
classes are offered ev ery Monday
and Wednesday. 6 to 8 p.m . a:
Woolls Intermediate School, r •: m
207. Call 426-3311 forint.
GED testing is Saturday
GED testing will be offered
Saturday. Dec. 15, at McDoweii Ir
High. Call for information. 426-
7666 or see story for details.
The doc's in on Saturday
The Medical Clinic of Hondo #3.
1004 20th St., is open each
Saturday. 9 a.m. to noon to see
patients. See ad for details.
The cancer support group.
"Dialogue," meets the 2nd Tuesday
of each month at the Hondo Public
Library from 6 to 7 p.m.Contact
Theresa Johnson. 830-426-2655.
Hondo TOPS (Take Off Pounds
Sensibly ) Chapter meets Thursdays
at 6:30 p.m., at the Community/
Senior Center, 1014 18th St..
Mondays, Wednesdays, Fridays, 8
p.m., at St. Paul Lutheran Church,
white annex building, Ave. M & 15th
Mondays, 7 p.m., at First United
Methodist Church, 16th St. & Ave. K.
New Life Recovery
Christian alternative 12-step
substance abuse recovery program,
at New Covenant Fellowship, 2610
30th St. Men, women and families
meet Thursdays, 7-8 p.m.
Hondo AARP Chapter
Hondo AARP Chapter # 2543
will hold its monthly meeting
Thursday, Jan. 3, at 10 a.m., in the
Hondo Community/Senior Center,
1014 18th Street. New members
City settles over
PLAYING SANTA... Ever Change
Youth and Family Services, Inc.
employees donated bags full of
toys to the Blue Santa program.
Kelly Pape delivered the toys to
Chief Don Berger.
CONTINUED FROM PAGE I
about returning to what he considered
a troublesome policy.
• Council agreed to spend up to
$42,000 to help repair the roof on the
Hondo Livestock Auction. The auc-
tion house’s roof was damaged by the
Oct. 12 tornadoes. “They can live
with damage to the pens,” explained
Barden. “But part of the roof was
blown off making it muddy and al-
most impossible to operate."
“With the closing of San Antonio's
Union Stock Yards, the volume at the
Hondo Auction has increased and I
expect the market to keep growing,"
said Rivers, explaining the decision
to help the livestock trading operation
• Council awarded a bid for a
bucket truck to Time Manufacturing
The truck is to be used by the elec-
tric department to repair, replace, and
maintain streetlights, transformers,
and high power lines.
• Mayor Barden nominated Cindy
Taylor to serve on Medina County’s
9-1-1 District Board of Directors.
Council approved Taylor's appoint-
ment by a 3-1 vote over the opposi-
tion of Councilwoman Carmen
Hernandez. Rivers, who preferred
candidate Keith Lutz, abstained from
the vote Taylor will replace Bonnie
Kunz, w ho resigned in September
• As their final act of the night,
council cast a unanimous vote to give
city employees a full day paid vaca-
tion on December 24. The Christmas
Eve holiday is usually a half-day va-
cation for city workers. Council
elected to give employees the entire
day off because Christmas Eve falls
on a Monday between two days off.
• The first meeting in 2002 for the
Hondo City Council will be Monday,
Jan 7. at 7 p.m. in City Hall. The pub-
lic is welcome to attend.
One-Stop Shopping for
Everyone on Your List!
Lotions, Glitter Splash,
& Bubble Bath
Jewelry & Charms
Crosses • Collectibles
Candles • Cards
Huge Assortment of Owls
Cloth U. S. Flags
The Owf* Heft
426-8854 *1101 19,h St.
Armstrong Hotel Bldg
HONDO ANVIL HERALD
published every Thursday al
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Entered at the Post Office. Hondo. TX
Second Class Mail
In Medina Co. - $20 per Year;
in Texas - $25 per year; Out of Texas - $35 per year
ISSN 249-280 a
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POSTMASTER: Send address changes to: The
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Telephone: (830) 426-3346. E-mail: firstname.lastname@example.org
By William Hoover
Anvil Herald Correspondent
Medina County Judge David
Montgomery has been in discussions
with City of Hondo leaders since
1998 attempting to convince them to
pay for damage incurred to a build-
ing owned by his wife at 1105 High-
way 90. On Monday, the city issued
Montgomery a check for $10,000 to
settle the dispute. He was not happy
to have the issue resurface just as a
three-way race for his elected posi-
tion was taking shape in Medina
County, but he was glad to finally
have the issue resolved. County pri-
mary elections are in May 2002 and
at least two candidates have filed to
challenge Montgomery, a two-term
incumbent, for the judge's seat.
“This was originally reported as a
lawsuit,” said Montgomery. "I would
never file a lawsuit against the city.
They just finally decided to do the
“It's been settled and the judge
signed the release late Monday," said
city manager John Vidaurri. “The
building that was demolished shared a
common wall and that was the issue.”
The $ 10,000 payment from the city
was meant to reimburse Montgom-
ery for damage incurred to the build-
ing as the result of a city demolition
By William Hoover
Anvil Herald Correspondent
Southwest Securities representative
Mark McLiney gave Hondo City
Council a presentation encouraging
them to refinance the city’s debt to
take advantage of the lowest Federal
Reserve interest rates in over 50 years.
McLiney offered the council several
options which he said would ensure
savings of $100,000 or more over a
ten-year period. After the presenta-
tion, council unanimously approved
of retaining Southwest Security to act
as the city's financial adviser.
“He has been talking to the city
manager, the city treasurer and me re-
garding outstanding debt refinancing
because of the current low interest
rates," Hondo Mayor Jim Barden told
council as he introduced McLiney.
McLiney told council the bond
market rates continue to fluctuate and
asked for a savings target price coun-
cil would like to realize.
"A few years ago, I presented this
option to (former city manager) David
Chavez but it was decided the savings
were not enough," said McLiney. “The
rates have come down dramatically
since you issued these bonds, though.
You can refinance at a lower interest
rale just like refinancing a home."
The city’s three high interest rate
bonds were issued from different city
funds. In 1989, the city issued bonds
to borrow $390,000 for the airport
fund. In 1991, council issued two
bonds to borrow $840,000 for gen-
eral fund expenses and water and
sewer fund expenses.
Interest rates were sitting at 4.1%
two weeks ago and have since raised
slightly to4.4%. McLiney suggested
the city refinance $1.23 million in
bonds with high interest rates of 6.7%
to 9.2%. With a first-year cost of $50,
the city could realize a savings of
$107,000 over the life of the bonds.
"You also would eliminate agent
and administrative fees by combining
three bonds into one,” said McLiney.
Barden asked if the city would
have to pay administrative fees out
of its $107,000.
“That is your savings after all cost
of issuance,” said McLiney.
project in 1998. Montgomery's build-
ing shared a common wall with one
of three demolished buildings. The
removal of the neighboring building
left an interior wall exposed to
weather. Wet weather conditions over
the past three years have caused sig-
nificant damage to the building.
Originally, the city’s insurer, the
Texas Municipal League, told the city
not to pay Montgomery or they might
be liable for further damage. The TML
opinion was that, because the city fol-
lowed all applicable rules in perform-
ing the demolition, the city was not
liable for any damage. Indeed, Coun-
cilman Doug Rivers said TML wanted
to fight it out in court but the current
council felt the city did, in a way,
cause the damage because the demo-
lition was conducted by inexperienced
crews. Montgomery had been turned
down after making several requests
for payment since 1998, said Rivers,
and the consensus of council was the
problem had continued long enough
and needed to be resolved.
"The current friction between the
city and the county can all be traced
back to this incident,’’ explained Riv-
ers. “1 do think part of the damage is
his fault because he never made
needed repairs, but council wanted
to get this over with to improve our
relationship with the county.”
"Interest rates continue to fluctu-
ate. So if you want to move forward,
set a target because we can’t do this
tomorrow," said McLiney. “If you set
a target we won’t pursue any changes
unless we can reach that amount. If
it is not six digits, its probably not
worth doing.” Council set a target
minimum of $100,000 in savings.
McLiney assured Councilman
Bob Heyen the interest rates would
be fixed for the duration of the debt
payments once council approves the
"The rates will fluctuate until coun-
cil authorizes us to act,” explained
McLiney. “When you give us ap-
proval, we will lock in the rates.”
“The $107,000 savings would be
spread over nine to 10 years," Barden
McLiney said another option
would be for the city to pay off its
$390,000 airport fund bond because
it had the highest interest rale at 9.2%
"But you don't have to do anything,"
said the financial adviser. "I don't
want to kill the refinancing deal, bui
you could just pay off one bond. They
don't have to be paid off all together."
Barden did not like the idea of a
Sj390,000 payment but thought the idea
of refinancing was worth pursuing.
The mayor said the city had signifi-
cant reserve funds of approximately $5
million but the city had substantial
expenses from the Oct. 12 storms. “A
lot of people are refinancing their
houses so we should have City Man-
ager John Vidaurri and City Treasurer
Debbie Sills explore and pursue a way
to retire our debt," said the mayor.
Heyen made the motion to have
Southwest Securities act as the city’s
financial advisor and pursue refinanc-
ing of bonds subject to legal review
by the city attorney. The motion passed
by unanimous consent after being sec-
onded by Councilman Doug Rivers.
After the approval was granted,
McLiney told council he would return
to Hondo for the Jan. 23 council meet-
ing. “Bond sales restart after the holi-
days on Jan. 7. So by the 23rd, we will
have a good feel for the market," said
McLiney. “I will work with John and
Debbie over the next several weeks
to see what savings we can get.”
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Hondo Anvil Herald (Hondo, Tex.), Vol. 115, No. 51, Ed. 1 Thursday, December 20, 2001, newspaper, December 20, 2001; Hondo, Texas. (https://texashistory.unt.edu/ark:/67531/metapth819736/m1/2/: accessed April 22, 2019), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Hondo Public Library.