McComb Mayor Whitney Rawlings said Tuesday the city board is putting the finishing touches on its application for a low-interest state loan that will allow officials to release needed money back into the city utility fund and avoid a bond issue.
“This is the final piece to this ... loan to complete our application and put everything in (the Mississippi Department of Environmental Quality’s) hands,” Rawlings said of the state agency that issues the state revolving fund loan.
In December, the board agreed to write a $2.5 million check to Seimen’s Building Technology, using money from the utility fund. That fund had another $2 million already earmarked for a grant-funded sewer interceptor project on Summit Street.
The settlement was the result of a year-long legal battle with the company for the installation and operation of 6,000 automated water meters. The meters, however, did not function properly at abandoned properties and were not installed in the time allotted.
The city had to borrow $1 million from the general fund to help pay the settlement and had planned to pay the money back through the utility fund.
The city received a $600,000 Community Development Block Grant to help pay for the interceptor project. However, the city had to prove to MDEQ that there was money available for the interceptor project, whether or not it received CDBG funds.
“We committed to doing the project and we made an application for CDBG funding, which we received,” Rawlings said. “We had to match that and had to prove we had the funds to do the project, regardless of the CDBG.”
That forced the city to freeze the earmarked $2 million in utility fund money, which could have been used to pay back the settlement but would have jeopardized the CDBG funding.
“As soon as we get the SRF loan, the monies become unrestricted,” Rawlngs said.
Money became scarce as payroll approached in March and April, and the anticipated $2,082,000 low-interest state loan had not yet been approved.
The city decided to postpone payments to the general fund until September — the last month of the fiscal year — to prevent having to issue general obligation bonds to help the fund stay afloat.
“We haven’t (issued bonds) yet,” Rawlings said. “We are trying to hold off as long as we can before having to pull the trigger on these bonds.”
Now the city has to continue the waiting game.
“The timing of this SRF loan is important and the sooner we get confirmation of receiving the loan, we can breathe a little easier,” he said.
Officials had hoped the loan process would be completed before the end of March, but it has taken longer than expected.
However, Rawlings expects the process to be over — one way or the other — soon.
He said if they city doesn’t hear about the loan in the next 60 days, it may have to move forward with issuing bonds.
In other business, the board:
• Approved a request for qualifications from CPA firms to prepare and audit the city’s financial statements.
• Approved $60,000 for the purchase of two SUVs for the police department.
• Approved a $2,994 payment to Neel-Schaffer for engineering services related to the CDBG interceptor project.
• Approved a $71,947 payment to Mayrant & Associates for the renovation work on Fire Station No. 1.
• Approved a $20,660 payment to Cox Architecture for work on Field 4 at the McComb Sports Park.
• Approved the travel of Lt. Sean Gill to Denver for the Life Savers Conference. The funds will be reimbursed through a DUI grant.
