Councilman Chuck Phillips gave a financial committee report at Tuesday's City Council meeting, that separated out the funds. “The committee decided because of uncertainties of revenue streams that are going to be created, we need to break these out into separate financing requests for 5 and 10 years,” said Phillips.
The city agreed to borrow $700,000 for the purchase and replacement of 3,500 water meters in the city. The monies will be obtained through BB&T on a 10-year long term commitment. Also borrowed on a 10-year note was $378,000, which is earmarked for repairs to the Carpenter Center along with the purchase of two warehouses beside Maple Grove Cemetery, which will eventually be used for expansion.
The council voted to borrow $430,000 from First Southern Bank on a short-term 5-year commitment. $200,000 of that will be used for general fund projects, which include the Harrison-Hite Building and theater overages. The additional $230,000 will be used for sewer projects and a new water tower.
Councilman Russell Jones, who serves on the financial committee along with Councilmen Chuck Phillips, Mark Stratton, Mayor Shirlee Yassney and city clerk Bob Riggs, said they feel good about their recent decision to borrow the funds.
Jones said the $700,000 that is being borrowed for the water meter project is expected to acquire a payback within five years. He said the council decided to extend the load for 10 years so it wouldn't put a financial strain on the city in case it took longer.
Jones as well as other councilmen and water experts have said that replacing the city's old meters will generate a huge amount of revenue the city has been losing through unaccounted-for water.
Jones added that $200,000 of the $230,000 earmarked for sewer projects has already been awarded through a grant which has not yet been received. He said the council is borrowing the monies until they receive the grant. “There is no penalty with these loans for paying them back early,” said Jones.
The other monies borrowed, said Jones, are for projects that either have already taken place or are in need of. Jones said the water tower property which was purchased on top of Hospital Hill will be used as the site for a new water tower that will be beneficial to residents, who have waiting a long time to have decent water pressure.
The $378,000 borrowed for the Carpenter Center and cemetery property is also necessary, said Jones. The city purchased two warehouses next to Maple Grove Cemetery for expansion of the cemetery. The city is currently collecting revenue on one of the warehouses from a tenant. The Carpenter Center is currently repairing its dectron unit, which will allow the center's pools to be reopened.
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