If they decided to, McComb selectmen could borrow up to $5 million to finance street paving and repairs.
City Administrator Kelvin Butler told city board members Tuesday night that the city’s financial advisor, Larry Day of Daylight Capital Advisors, had calculated the $5 million borrowing capacity for the city.
But while the city could borrow that amount, “we don’t want to max it out,” Butler said.
Butler also told the board that each mill of taxes is supposed to bring the city $98,290.
Mayor Quordiniah Lockley said he is not making a recommendation on paving or borrowing for paving now.
“I’m providing you information so you can make an intelligent decision,” Lockley told board members. “The payback would depend on the term of the loan, whether it’s 10 years or 20 years.”
Borrowed money, whether by issuing bonds or taking out a direct loan from bank, would be paid back through tax millage for debt service.
Selectman Ronnie Brock asked how inflation is accounted for in millage, and Lockley said it isn’t.
Brock also asked Public Works Director Alice Barnes if she could develop a plan for paving based on $2 million in financing.
Barnes said she could, but much would depend on where selectmen want the paving to be done, the condition of the streets and how much of a street is to be done.
Officials also have to consider whether the street needs to be milled (scraped) and whether the asphalt is overlaid 1.5 or 2 inches.
“If you want to address your worst streets, and they need to be milled and overlaid 2 inches, that may use the whole $2 million,” Barnes said.
She said selectmen should consider addressing areas in each ward, and also perhaps just milling and filling or paving at major potholes and high-traffic intersections, without paving whole streets.
“Would it be worth it to buy a milling machine?” Selectman Donovan Hill asked.
Lockley said he believes it would, an idea the city has explored before but never followed through on.
“We can get some estimates, and maybe we can cut out some of our (paving) costs,” he said.
Barnes said a milling machine could be helpful, and “an asphalt truck would also be on my wish list.”