Council votes today on $6 million loan

By By Fredie Carmichael / staff writer
March 18, 2003
City councilmen are expected to vote today to borrow up to $6 million to pave and repair Meridian streets a move that one councilman said won't raise taxes.
Ward 1 Councilman George Thomas said Monday that he would not vote to borrow the money which is done by selling general obligation bonds if it would require an increase in property taxes.
Thomas said the city has paid off old debt, allowing the council to borrow new money without raising taxes. He also said the council has not specified which streets it plans to pave and repair with the money.
Councilmen are expected to tackle the issue at tonight's 7 p.m. regular meeting in the municipal courtroom of the downtown police station.
The vote comes about four months after Meridian Mayor John Robert Smith proposed borrowing up to $5 million for street repairs. The council upped the ante to $6 million last month so it could repair more streets.
With final approval of the loan tonight, councilmen say work could began as early as this spring. Some councilmen said they expect the loan to pass with ease.
Meridian currently has about $11 million in outstanding debt. City officials last borrowed money through general obligation bonds in 2000 $1.1 million for street-related work.
The city currently retires about $2 million a year in outstanding debt. Thomas said the proposed $6 million loan would be paid off over a 15- to 20-year period.