Dresden board approves 6.8 million loan for Municipal Complex
Story by Shannon Taylor Senior Investigative Reporter
The 6.8-million-dollar loan on the agenda for the April 4 meeting had some residents expressing their concerns during citizen’s input. Brandi George asked if Maddox had any updates on FEMA monies received and Maddox said did receive money but, “We don’t know how much it is yet.”
George asked how much insurance money was received and City Recorder Jennifer Branscum said that it was “just short of a million.”
George then asked if the city has the 2.4 million surpluses that the auditor mentioned months ago, FEMA and insurance money combined, “then why are we looking to take out an almost 7-million-dollar loan with that resolution?” Maddox said, “Because you don’t want to spend all of your cash at the same time in case something disastrous happens in the city.” George said that with the insurance money leftover used towards the project it would save taxpayers money off the 7-million-dolalr loan. Maddox said, “And that’s the way it will be used.”
Lowell Jones also raised concerns. “If the city does go ahead with this 7-million-dollar loan, what will that do to our property taxes?” Maddox said that they were still working on the budget, which would be presented at the June meeting and that they would know at that time. He said if they knew before then they would try to get that communicated, but that they didn’t know at this time.
Jones said that he is a senior citizen on a single income and asked, “Don’t you think this should be done after we find out what the tax base would be? A substantial increase in taxes will hurt me and hundreds of others of folks who get a once-a-month check. With inflation and everything else going on right now—we’re about strung out as far as we can go here. An additional increase of the taxes would really be hurtful.”
Maddox said that he was sure the board understood that and that he understood. “We have to build a building and we have funds that will be applied to that.” Maddox said that when they get to the end of the project and know how much cash they have then they’ll know how much they need. “We hope we will not need the 6.8 million.”
Jones said that he hoped that taking out the loan would be postponed until they knew how much the tax base would be.
When the resolution to apply for funding was brought up, Maddox said they were waiting on bids to come back for the building and when construction started there would be loans to be approved by the board and those would be marketed with the banks in town.
Maddox said when the building is under construction, only interest would be paid on the loans, but once completed, the USDA would have the ability to buy all the construction loans from the banks and they would get their interest rate to fund and pay off those loans. Once the construction was complete, they would pay off what they can and take out a loan with the USDA for the rest.
Moore brought up people who owed the city money for demolition and the fact that some had yet to pay that debt and that it wasn’t fair to the others that had paid. Moore said that the city ought to make everyone pay or forgive all the debt and that it should be the same for everyone. Maddox said he wasn’t willing to forgive any debt owed to the city.
The board voted 5-1 in favor of approving the resolution. Moore voted against.
A city of Dresden purchasing policy was discussed which stated that the mayor, or his designee, would act as the purchasing agent for the city and that, as that agent, they would have full authority to make purchases of more than 5K and less than 25K requiring two competitive bids or quotes, prior to each purchase.
The revision would update the previous policy with a purchasing limit of $5,000. Branscum stated the amount was below state law. “We spend a lot of time and resources trying to get quotes and purchases and we end up having to bid those out anyway.”
Alderman Kenneth Moore said, “So right now the mayor can spend up to $5,000 without coming before this board and now you’re asking to give him the authority to bypass the board and spend $25,000?”
Branscum said that any department head could make purchases with the finance director’s approval and purchase order in place to make sure the funds are available. Maddox said it would bring Dresden in line with what most cities and counties are doing.
Moore stated it was just taking power and responsibility away from the board. “If you’re elected to this board here that requires a special meeting or a phone call to verify that you need to spend $25K, I think that’s the way it ought to be.”
Vice Mayor Gwin Anderson also had reservations regarding the policy. He asked if before purchases are made or bid that they could come before the board to vote on the expenditures.
Alderman Dale Hutcherson asked if the ordinance was presented specifically based on the new building project or was it meant to last because of state standards. Maddox said it was not a building project resolution, but an operational resolution that would speed up the city’s ability to purchase things. Maddox said that the board approves the budget, and the department heads have to stay within that budget.
Hutcherson said that the board was put there to make those decisions, but that if a department head didn’t make expenditures in a smart way that it had the potential to hamper the city.
Branscum said that the finance director did a very good job and that if a purchase order is put through it would not be approved if it was not in the budget.
Anderson stated that he didn’t have a problem with changing the requirements for bids, but wanted the board to hear about those purchases before they are made. Branscum asked if they could raise it to $10K and Anderson said, “No. I’m giving you 25 if you come back to me and talk about it. I’m giving you the ability to not have to bid it up to 25 and if that’s not good enough for you then I don’t want to change it.”
Moore said that the entire thing couldn’t have worked out any better for the citizens to be there. He said he understood Lowell’s concerns about being on a fixed income. “We have a big expenditure coming up and now you want to change things.” Moore said that more thought should have been put into the agenda. “This is a big deal to me.” Moore said that George had also brought up several good points and he had been trying since the tornado hit to get a bottom figure for the money the city had, and that George had spoken to him about it and he told her “Good luck because I’m an alderman and I can’t even get a bottom line. I don’t know what the secret is, but I say we go ahead and bring this boat up and get done with it.”
Maddox interrupted that they were getting into discussion before a motion for approval was even made on the policy. Alderman Willie Parker made the motion, but after no second was received, the motion died on the floor.
Due to Iris Festival conflicts, the May board meeting will be held Monday, May 8 at 6pm at the Dresden Civic Center. This year’s festival will mark the 43rd festival and the schedule of events has been released.
