Sifting through Meridian's $6M fiasco
By By Terry R. Cassreino / assistant managing editor
Jan. 25, 2004
Let's get this straight: Meridian councilmen voted in March to borrow $6 million for street work, the money was placed in a bank account in August and nothing has happened since.
No streets have been repaired. Nothing. Zilch. Meridian's five city councilmen haven't even approved a list of streets to repair with the money.
The only thing certain is this: Meridian must pay 3.76 percent net interest on the loan beginning the day the city received the money. At the same time, the money is earning a meager 1 percent interest.
But if you listen to Meridian City Councilman Barbara Henson, who represents Ward 3 and serves as city council president, she and other Meridian officials are "good stewards of that money."
Whoa. Wait just a minute. Henson said that Meridian officials are being good stewards of the $6 million loan? Am I missing something? Does she seriously believe that?
Questionable moves
Does anyone realize that the city has sat on every penny of the $6 million for six months, must pay interest on the money dating back to August and has absolutely nothing to show for it?
In contrast, take a look at Lauderdale County. Supervisors voted last week to borrow $3.8 million to pave or resurface roads.
Even though the county hasn't received the money, officials already have compiled a comprehensive list of roads targeted for work and broken down by each of the five supervisor districts.
The list was released Thursday, two days after supervisors approved the loan and a move that makes you wonder what in the world is taking Meridian so long to compile its own list of roads.
Road list
It seems to me that councilmen would have wanted their final list of roads when they initially approved the loan not more than 10 months later.
Henson and fellow Councilman Bobby Smith tried to speak to that point in a hastily-called news conference Thursday. In the end, they only raised more questions about the $6 million loan.
They said they were "anxious" for a final list of streets from the Public Works Department. But, Henson said, councilmen can't get the Public Works director to tell them anything or do what they say.
What? I thought councilmen represented the people and set policy. Does Mayor John Robert Smith have such a heavy hand over city departments that the council can't obtain answers from them?
And that brings us back to the main questions raised by this entire $6 million fiasco: Where is the final list of city streets? Why wasn't it ready when the city got the money? And when will work begin?
Unanswered questions
But no one seems willing or able to answer those questions.
Meanwhile, as the city keeps dragging its feet, streets continue to deteriorate, pot holes continue to grow wider and taxpayers continue to finance a loan without any results.
Think of it like this: Meridian's action is no different than you borrowing $20,000 to buy new car. But when you get home from the bank, you decide to look for a better deal before forking out the money.
You may not have a new car or anything to show for the loan, but you better make that car payment.
Or how about this: You have the chance to borrow money at a low interest rate you may never see again. So you borrow $10,000 but you decide to wait at least six months to spend it.
Now answer this question: Are these examples the best way to manage your money? When you're finished, look at what's happening in Meridian and answer the question again.
