Council seeks loans

Published 3:00 am Wednesday, August 3, 2016

The Brundidge City Council voted Tuesday to solicit two local banks for bids for a five-year $350,000 loan for the purpose of resurfacing streets in several sections of the city.

City Manager Britt Thomas told the council that, while interest rates are low, it is a good time to do the much needed resurfacing of street across the city. The money can be paid back in five years.

“We are assuming an interest rate of 3 percent and that the loan would be tax exempt,” Thomas said. “The annual payment would be about $75,500 and the annual budget would be $99,500.”

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Thomas said that would leave about $24,000 a year cash and the cash would grow to $120,000 in five years,

“That is with no major problems,” he said.

The total cost of the project is estimated at $330,694.50. However, the council voted to apply for a $350,000 loan to have funds available if the cost runs higher.

The streets that will resurfaced and the cost of each are Henderson Street, $26,031; Pine Street, $10,145; Nassau, $24,249; Airport Road, $104,241 that also includes the paving of the parking lot for city utilities, John Street, $11,329; Johnson Street, $37,542; Ann Street, $12,070; Gilmore Street, $18,259; Bowden Street, $36,609; Barr Circle, $23,663; and Hall Street, $26,554.

Max Mobley of Polyengineering in Dothan addressed the council and residents of the Johnson Street area about the continuing issues caused by the inability of rainwater to flow along Mims Creek. The creek borders the properties along Johnson and Darby streets.

Mobley said the creek comes under the jurisdiction of the Army Corps of Engineers and the Corps doesn’t allow for the channelization of streams.

“If it were a drainage ditch, we could probably get a grant to correct the problem,” Mobley said. “But the banks of creek cannot be disturbed.”

Johnny Ross, who lives on Darby Street, said there are no banks. The banks that did exist have been filled in by the sand and debris that is clogging the flow of rainwater to the culvert on Highway 231.

Mobley said the city is dealing with ADEM regulations that might seem silly but they are real. He said to alleviate the situation would be costly and could take years. He also said there would be no grant funding available.

Mobley suggested that the first step to any solution would be to survey the situation to determine any options that might be available.

The council voted to begin the process to a solution.

The council voted to employ the administrative services of South Central Alabama Development Commission for the city’s Community Development Block Grant for the Magnolia Vegetable Processors project.

Council members Betty Baxter, Arthur Griffin and Margaret Ross were unopposed in the city’s general election and were certified as council members for the 2017-2021 term.