COMMERCE — The Commerce City Council passed the first reading of a proposed water and wastewater rate increase that would result in a blended rate increase of four to five percent. According to City Manager Marc Clayton, the rate is a result of a seven percent increase on water actually used and no increase in the meter rate, which creates a four to five percent net increase.

The first public hearing was also held on the proposed tax rate, which would remain the same as the previous fiscal year.

“Because our property values went up, our effective tax rate went down,” Clayton said. “So even though we’re proposing the same rate of $0.82, our effective rate is now $0.817, which means that in order to pass the rate, we have to hold two public hearings.”

The second hearing is scheduled for 5:30 p.m. on Sept. 4 in City Hall.

The council passed an ordinance that authorized the issuance of more than $9 million in general obligation bonds, approved an official statement, a bond purchase agreement, a paying agent/registrar agreement and an engagement letter of bond counsel following a presentation by Jim Sabonis of First Southwest Company. According to Sabonis, $3 million of the bonds were approved by the citizens of Commerce for road improvement, and the remaining $6,025,000 was general outstanding debt that the city is refinancing. With an interest rate of 2.6 percent, the refinance will save the city more than $600,000. The bonds are projected to have a two cent impact on the 2014 tax rate, according to Sabonis. The council took a brief recess to sign the necessary documents.

“The refinancing couldn’t have come at a better time for the city of Commerce,” Clayton said. “Interest rates are at an all-time loan, and our bond rating is good. It all clicked.”

The council also voted to award a bid for insurance coverage for city employees to United Healthcare, the company that provided insurance coverage last year, based on a recommendation from Wellspring Insurance Company. The city will see a nine percent increase in costs, which Wellspring negotiated down from 19 percent.

“We’re lucky to have only a nine percent increase while keeping our same benefits,” councilwoman Sue Davis said.

The city accepted the audit for the fiscal year ending on Sept. 30, 2011 after a presentation by Mike Conway of Conway Company CPAs. Conway responded to reports that the audit was long overdue, which contributed to a bond rating company lowering the city’s bond rating.

“I take issue with reports in the Commerce Journal and KETR that the late delivery of the audit was responsible for the lowering of the bond rating,” Conway said. “Completing an audit is a partnership.”

Conway noted that the company is deeply invested in Commerce, employed many A&M-Commerce graduates, and often turned around audits quickly when the companies they worked for were prepared for them.

The Spot in downtown Commerce will be allowed to set up a “beer garden” during the Bois d’Arc Bash. Because of their new designation as a private club, The Spot will no longer be allowed to sell beer to go. Patrons will be required by Texas Alcohol and Beverage Commission regulations to consume alcohol inside of the “garden,” which will extend from the corners of the establishment over the sidewalk and parking spaces, according to the TABC Agent assigned to Hunt and Rockwall counties.

A&M-Commerce has offered to donate bricks to the city as part of the construction of an entrance sign on the north end of Highway 24. Councilman John Sands and councilwoman Emma Martin were appointed to a committee to get construction of the sign off of the ground.

The city also approved a variety of demolition projects on city property and the sale of a fire engine. Three houses will be constructed in Commerce after their owners were approved by the Texas Department of Housing and Community Affairs to receive state funds.

Melinda Reid of the Commerce Tigersharks Swim Team made an announcement regarding their summer swim program, which saw 14 swimmers qualify for an A regional swim meet and two swimmers qualify for a state swimming meet in Corpus Christi. Reid thanked the city and Parks and Recreation Department Director Ricky Harris for their support.