With discussion already held over several work sessions and board meetings, McComb selectmen spent little more time Tuesday night approving a $1.5 million bond issue to fund construction of a new Martin Luther King Recreation Complex.
Board members approved Selectman Ronnie Brock’s motion to issue the bonds 4-2, with Selectmen Michael Cameron and Ted Tullos opposed.
Cameron reiterated Mayor Quordiniah Lockley’s report of an annual payback of $120,000 on the bonds and pressed Lockley on the source of those funds, as he did at last week’s work session.
“Again, are we going to raise taxes to pay for this?” Cameron asked.
“Yes, on debt service,” Lockley said.
A mill brings in a bit more than $70,000 in McComb, meaning debt service millage would go up roughly 2 mills to cover the estimated bond payments.
The 2018-19 budget includes tax revenue of $811,764 to cover debt service, unchanged from the previous year. Payments for debt service total $781,925, including $146,875 on 2014 bonds, $147,819 on 2006 bonds, $140,150 on 2015 bonds and $347,081 on 2017 bonds.
“We have 60 miles of streets that need attention,” Tullos said, also pointing to other infrastructure needs. “I’d like to see our money go there.”
The bond purpose listed on the meeting agenda says bond funds may be used for construction of the building as well as streets, sidewalks, culverts, fire hydrants and parking around the site.
Board members also approved a change order for the Water Well No. 5 replacement project, and authorized a loan amendment with the Mississippi State Department of Health.
Public Works Director Chuck Lambert told board members that the 16-by-10-inch test well only produced about 500 gallons-per-minute of water flow, and Neel-Schaffer engineers and Griner Drilling Service recommended expanding the well to 20-by-16 inches to get 750 gallons per minute or better.
The increase in size boosted the cost by $168,909, which will be funded revising the loan amount already awarded by MSDH.
Both the change order and the loan revision passed unanimously.
In a separate agenda item, selectmen approved payment of $35,625 on project work to Griner.
The board adopted amendments to the 2017-18 budget to balance line-item revenues and expenditures.
Lockley told board members that the hiring freeze instituted in August had a “significant impact” on the financial strain the city faced, with perhaps as little as $1 million to last through the end of the year until most tax collections and disbursements pick up again in January.
By not filling 17 open positions, Lockley said the city now projects an ending fund balance from the 2017-18 budget of $2 million to $2.2 million, pending last invoices that may be charged to the previous budget year.
Those invoices are expected to all be submitted by Monday.
In other financial business, the board:
• Paid Neel-Schaffer $13,093.14 for work on the Railroad Boulevard improvement project.
• Accepted donations of $100 from The Oakes Agency and $1,710 from St. Hubert’s Animal Welfare Center for the McComb Animal Shelter, and acknowledged $5,000 of pet beds and $16,804 worth of pet meals from Bubba’s Beds and Freekibble.com.
• Designated state reimbursements totaling $1,566 for police training.
• Paid monthly claims of $1,661,550.
• Received $3,738 for privilege licenses, $47.15 in privilege license penalties, $20 for contractor licenses, $3.20 in contractor license penalties, $1,405 in rental property fees and penalties, $48,864 in water and sewer capital improvement fees and $27,567 in city court fines and fees.
