The Kempner City Council last week approved an ordinance authorizing the issuance of “City of Kempner Tax Notes, Series 2010” and enacting provisions related to that issuance. As part of the ordinance, the council accepted the lowest interest rate bid.

Tax note funds of $425,000 will be used to purchase property and construct a new City Hall.

Jennifer Ritter Douglas of Specialized Public Finance, the city’s financial adviser, reported four bids were received, and Citizens National Bank of Cameron bid the purchase of the tax note at 2.79 percent. It had been anticipated the interest rate would be around 4 percent, she said.

With acceptance of the bid, Kempner should receive the funds around Sept. 15. The city will have seven years to pay off the debt, but there is an option to refinance, Ms. Douglas said.

In a related matter, Mayor Gene Isenhour said negotiations are ongoing for the purchase of approximately one acre for a new municipal building, but some legal questions exist with the property.

“We should have all questions answered by Sept. 7,” Isenhour said.

The proposed site for the new City Hall is south of U.S. Highway 190 between Peach and Orchard streets. Isenhour said a workshop will be scheduled with an architect and engineer so council members and city staff can give input on the floor plan for the building.

Also, the council approved a variance for construction of restroom facilities at Sylvia Tucker Memorial Park. Isenhour said although the restrooms will be located in a flood plain, they will not result in increased flood heights, additional threats to public safety or extraordinary public expense, nor will the restrooms conflict with existing local ordinances.

The mayor said the restroom site has been excavated and base material has been laid. The next step will be building concrete forms for the foundation.

Cost of materials for the restrooms is approximately $15,000, Isenhour added. Members of Fort Hood’s 36th Engineer Brigade are constructing the facility.

And Kempner has been notified that it gained approval for $72,796 Texas Parks and Wildlife Small Cities Grant. The funds will be used for playground equipment, a picnic pavilion and a wildlife viewing area at the park.

Isenhour said of the 25 applications for the TPWD grant, 10 were approved. The Kempner application had the third-highest ranking of those, he added. The city also will apply for Lower Colorado River Authority grant for the park, the mayor said.

In other business, Kempner Volunteer Fire Department Fire Chief Dan Hause and firefighters Andy Smith, Tracy Pace and Dewey Owen expressed their thanks to the council for its $2,000 donation to the department. Hause said the funds were used to help send six KVFD members to the Texas A&M University Fire School or the National Fire Academy for advanced fire-fighting training.

Isenhour in turn thanked the fire department for its service to the community. “Kempner citizens are fortunate to have a fire department of this high quality,” he said.

The mayor also informed council members that the annexation process for the Dollar General property is complete. The city can collect sales tax from the store, as it now lies within the city limits.

And annexation of the 15 acres that adjoin the store will proceed next, Isenhour said.

In final business, the mayor said policy guidelines have been written for a Neighborhood Watch program. Kempner residents interested in starting such a program should contact Police Chief David Sheedy.

Kempner City Council will meet next on Sept. 14 at City Hall. A public hearing on the 2010-2011 fiscal year budget and tax rate will take place at 6:30 p.m., followed by the regular meeting at 7 p.m., when the budget and tax rate will be considered for adoption.