Stimulus money not without strings

Local News

April 15, 2009

By Butch Weir Picayune Item Wed Apr 15, 2009, 08:35 AM CDT

POPLARVILLE — Needed upgrades and expansions to various parts of the city water system may be coming out of the federal stimulus package if details can be worked out, aldermen learned last week.

The complete project the city wants would see upgrades to the 100-year-old water system under Main Street, upgrades and extensions along Mississippi Highway 53 South and Mississippi Highway 26, and capping four old city well sites.

That overall proposed project comes at a price tag of $1.1 million. Using a median income formula, the city would only be able to get a 25 percent stimulus forgiveness or $276,000, leaving approximately $827,488 the city would have to finance to repay in 20 years.

Jason Lamb, engineer with The Walker Associate, told aldermen that although the median income of $35,530 for Poplarville citizens was just below the stimulus median income threshold — increasing what the city repays to the government for the stimulus loan — the planned upgrades were financially feasible.

Broken down to a monthly amount, Lamb said the city would need to budget $4,200 in monthly debt for the water system. He estimated a round figure of $540,000 annually. This includes retiring two existing projects.

Complicating the situation is the time frame for completing the application process — which included, among other things, advertising for and holding public hearings. The process would need to be completed by May 15, he said.

Lamb said a breakdown of what the city was currently paying for the two current debts, plus income from all aspects of the water system, indicated adding the $1.1 million project was possible.

He said in 2008 the water system generated an income of $574,000. That figure indicated the city water system was showing positive income, he said. By taking on the new debt of the stimulus pay back the city would still be in the black but the positive margin would be less.

Aldermen, on motion of Bill Winborn, unanimously voted to advertise for a public hearing to begin the process of applying for the stimulus funding.

In other matters, the board:

— Authorized the city attorney to draft a letter seeking refunds from AT&T; for telephone lines the city is being billed for but are no longer in use.

— Received a favorable audit report from the firm of Alexander and Van Loon.

— Authorized expenses related to the upcoming municipal election, noting that expenses are expected to be higher for this election because of new state data requirements.

— Accepted the resignation of police officer Clayton Hester who is accepting a position with the Pearl River County Sheriff’s Dept. and authorized advertising for a full-time and part-time police officer.

— Authorized Officer Al Tynes to attend a D.A.R.E. conference in Orlando, Fla., July 21-23; authorized Fire Chief Kris Foster to attend a fire chief’s conference in Hattiesburg June 5-7. Authorized Jarrod Trumbach to attend a Rope Rescue Technician, Level 1 Class in Gulfport April 27-May 1. Authorized Randy Goss to attend a Certified Volunteer Firefighter, Level 1 Skills Test at fire academy April 24.

— Appointed Tammy Krutzfeldt to the city planning commission.

Recessed until 5 p.m., Tuesday, April 21.

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