City council OKs street paving projects
By By Fredie Carmichael / staff writer
Feb. 4, 2004
Meridian City Councilmen on Tuesday unanimously approved a list of streets to be paved with a $6 million loan city officials received six months ago.
Councilmen had exchanged several drafts of a proposed list with the city's Public Works Department since officials first announced their intention to borrow the money for the repairs in November 2002.
Council President Barbara Henson, who represents Ward 3, said the list councilmen received from Public Works Director Monty Jackson on Friday was the most detailed report she has seen.
While the city took months to compile its list of streets, Lauderdale County supervisors took weeks to do a similar task while considering a $3.8 million loan to pave county roads. That loan was approved last month.
Henson said the reason for the city's lengthy delay was because Meridian's street projects are more complex than the county's.
Mayor John Robert Smith first proposed in November 2002 that the city borrow money for the street repairs.
City councilmen later announced they were working with the city administration and Public Works Department to approve a list of streets and originally expected work to begin last spring.
But Meridian officials then announced they wouldn't be able to pave any streets last spring because of work Mississippi Valley Gas Co. was doing on some of the same streets the city targeted for repairs.
Nevertheless, Smith and the city's financial team decided to borrow the $6 million last summer to obtain a lower interest rate on the loan a move Smith said has saved city taxpayers about $100,000.
The $6 million was placed in a bank account in August, where it is earning about 1 percent interest. Meanwhile, the city will pay about 3.76 percent net interest on the loan during the next 15 years.
Meridian is expected to make its first payment of $290,000 in principal and $223,929.75 in interest in July.
Ward 4 Councilman Jesse E. Palmer Sr. said he was happy councilmen unanimously approved the list of streets.
He said councilmen will now wait for the city administration to determine the best time to purchase asphalt and then begin work. Meridian officials have not set a date for street work to begin.
Henson agreed.
