Minutes 07/25/1978 - Laserfiche WebLink

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r),o \j TUESDAY JULY 25, 1978 So, the bottom line each year will save industry. an amount is that if this grant is awarded to the City by HUD, it all of Martinsville's citizens, businesses. and equal to 36.9% of current water rates. Additionally, Mr. Brown estimates a minimal increase in operating expenses as a result of the water system expansion. Thus, it is hoped that the additional water sales resulting from industry's increased demand, without a corresponding increase in operating expenses. will keep existing water rates constant or. at worst, subject to a minimal increase, an additional cost savings to all of Martinsville's citizens. 3. The Project meets the Federal objective of expanding opportunities principally for persons of low and medium income. According to the tape that Mr. West brought back from San Francisco, Harry Schwartz, the Assistant Secretary for HUD Legislation. stated that the aim of the program was to help communities which met specific guidelines accomplish goals that would involve commitments from private and public sources of $4. to $7. for every dollar of Federal money. In this application. private industry intends to invest $23,850,000 and the City intends to invest $150.000. which will increase employment of low and medium income persons by 31%. This is a commitment of $7.77 of City and private sources to e~ery dollar of Federal money, well above HUD's objectives. All of Martinsville's citizens will benefit from additional property tax revenues, increased sales taxes, increased water and electricity sales, and minimal or no increases in water rates. 4. Finally, Mr. Worthy has reviewed the application and is satisfied that the requirements. "or strings", are not too restrictive for the City to live with. The City's Housing Assistance Plan, already approved by HUD, involves no relocation of citizens, and states that housing goals will be fulfilled through the efforts of private industry. Mr. West's Statement: My support of this application, albeit tardy and reluctant. is reminiscent of my delayed and reluctant support in 1970 of a federal program which allowed private builders to participate in a rent subsidy program. Two members of council have recently focused on this support of mine in 1970. However, they failed to point out that this program was the Housing & Urban Development Act of 1965. Obviously, not the Housing & Community Development Act of 1974. And it was not pointed out that the action of council in 1970 did not per se put the city in the business of