Borrowing is the play of the day

By By Buddy Bynum / editor
Jan. 25, 2004
His colleagues on the Lauderdale County Board of Supervisors seem to have found the key to boisterous Ray Boswell's heart. It's simple: Money.
It remains to be seen whether this is a brilliant new political strategy to capture Boswell's vote on such issues as borrowing $3.8 million to pave county roads, or whether the District 5 supervisor has just seen the light this one time.
But the fact is after previously leading a not-so-behind-the-scenes effort to defeat a line of credit proposal that could have produced funds for paving roads Boswell has now voted with three of his colleagues to, guess what, borrow money to pave roads.
The clincher this time was that Boswell's district will get the lion's share of the loan to pave roads his constituents must be telling him they want paved.
Ever the responsive politician, Boswell said he wants District 5 to participate in the bond issue because it has 41 percent of the roads in Lauderdale County 108 miles of dirt roads and 259 miles of paved roads. The list of roads ran in the paper on Thursday; Boswell's list is longer than anyone else's.
Ever the independent politician, and one who can contradict himself in the same breath, Boswell said, "Even though I don't support bond issues, it would be hard for me to vote against the people of District 5 having paved roads whereas I almost have twice as many (roads) as any other district," Boswell said.
Boswell said he did a lot of soul searching before deciding to approve the loan proposal. And he said some of his constituents who live on dirt roads encouraged him not to oppose it.
Some observers might say, then, that the heat was on.
But, just in case, his colleagues on the board think they have him pegged, there was this: Asked after the meeting if he would continue to support a countywide petition drive to force a referendum on the bond issue, Boswell said: "I'm not opposed to people voting for anything."
Asked if he is still going to sign such a petition, he said: "I might."
I seem to recall something about politicians who ride the prevailing winds.
For the record, District 3 Supervisor Craig Hitt cast the lone vote against borrowing the money.
Hitt said he opposed the bond issue because the loan amount went up from the $3.55 million recommended by Lauderdale County Engineer Neal Carson.
In case you're wondering, I'm for issuing the bonds. It's a good move that will bring some Lauderdale Countians out of the mud and improve roads that really need the work.
Different view
Over in the hallowed halls of city government, however, the story is a little different. The city borrowed $6 million nearly six months ago to pay for resurfacing work on city streets, but has yet to spend a dime to repave an inch.
Sadly, the city doesn't even have a final list of streets to work on, much less any idea of what each street will cost. Two city councilmen went public with their anxieties last week, saying even they couldn't get a list from Public Works Director Monty Jackson.
They essentially said Jackson works for Mayor John Robert Smith, not the council.
Now this really is something when members of the council are kept in the dark over an issue so fundamental as street paving. If a city councilmen can't get the information, how on earth can the general public ever break through the city's bureaucratic morass.
In the meantime, the city is paying 3.76 percent interest and earning 1 percent interest on the $6 million loan, clearly a ratio of diminishing returns. Come July, according to chief financial officer Ed Skipper, the city will have to make its first payment on the loan $290,000 in principle and $223,929.75 in interest.
And from where will that $513,929.75 come? Well, the city did tap into a $10 million line of credit. Surely, the city couldn't use one line of credit a loan to pay off another loan.
It seems to me that the city of Meridian has borrowed upwards of $16 million in the past year or so for a parking garage, certain water and sewer improvements, street paving projects and a variety of other items.
Financial consultant Dave Ramsey, who counsels consumers against going too far into debt, would not be pleased. He makes a case for living within your means.
But, strangely, if Meridian taxpayers are worried about the borrowing, very few of them are showing it. I guess they think all those new sales taxes generated by all the new retail establishments coming here will float the boat forever.