By Alisha Thompson
Money was on the agenda for this meeting. Passing the 2023-24 Budget and about talking million dollar loans took up the hour and a half meeting. Councilman Josh Oakley was absent from the May 8 meeting
The meeting began with a budget hearing for the 2023 -24 year
City manager Ricky Harness said there were no suggested changes to the budget from the April meeting, so he suggested no changes be made. “Unless there are any specific questions or you want to delve a little bit deeper. Nothing has changed since the April presentation based on the feedback we got during our special meeting,” Harness said.
Councilmen adopted resolution #648 FY 2023-24 Budget – All Funds. Resolution #649 was adopted for the Hanover Road Project Authorizing Limits and Authorities. City Clerk/Treasurer Susie Suther said that this resolution was put together because this project has a short time frame. The project was approved with an amount up to $275,000 with a $100,000 reimbursement being provided by the Chickasaw Nation Cooperative Agreement. This will authorize the city manager to execute the project through completion unless there are change orders that make the project go over the agreed upon price. Suther said the contractor did come back with a bid of $235,000. He will be required every month to give a report on the project at the council meeting.
Councilmen approved Gwen Williams appointment to the Cemetery Board. After the resignation of Sharon Bays due to health reasons, she resigned. Williams was happy to fill the spot according to Harness.
Councilmen approved the Greenhill Cemetery Rules and Regulations. Harness said he worked with the board to make sure they were consistent with code. Approve with changes regarding changes regarding firearms to be approved by the city attorney. Suther said the fees are higher, it will be $30,000 for the audit this year. Last year it was $21,000.
The FY2023 Audit Engagement Letter with Arledge & Associates, P.C. was approved by councilmen.
A Special Meeting is set May 24 at 6 p.m. for the Sixth Street Construction Project. Harness said that the project is out for bids and they are expected on May 22.
Resolution #650 was approved. A representative with Municipal Finance Services that served as the city’s financial advisors said the application was approved at the May Water Resources Board Meeting for the loan in the amount of $17 million 250,000. He went on to explain that the city will only pay back what they draw down. If bids come in under, the city won’t borrow the whole amount. If the city goes over the loan amount, they are required to come up with more money.
The city’s rate is locked in at 2.82% for the life of the loan, 30 years. He said if the city were to draw the full amount today, they would pay around $860,000 a year for the next 30 years. He said when the city finished drawing down the funds from construction, that is when the Water Board would set the amortization schedule, that would be if the city drew all the money, based on when they drew all the funds. He said what the city pays in interest would be what the city draws when they draw it.
Resolution #651 was approved. Nate Ellis with Public Finance Law Group, the city’s bond council, explained that he was there to speak about what was basically a grant. “It has to be approved like a loan. The Water Board, for program reasons has to call it a principal forgiveness loan. So, what that means, is as long as you don’t somehow screw it up, and spend it for what you’re not supposed to spend it on. You do not have to pay any interest. You don’t have to pay any principal amount back,” Ellis explained.
This project won’t happen until July. This will money will help evaluate the city’s sanitary sewer systems.
Harness said the progress on Main Street came to a halt when ODOT crews hit two water lines and two gas lines. None of the lines that were hit were marked.
Davis Municipal Authority
Resolution #648 Fiscal Year 2023-24 Budget-All Funds, Resolution #652 and Resolution #653 were approved.
The next council meeting is Monday, June 12 at 6 p.m. at the Council Chambers located at 306 South Third Street.
By Alisha Thompson