Meridian to seek new $2.9M loan for water, sewer
By By Fredie Carmichael / staff writer
Nov. 18, 2003
Meridian city councilmen are expected today to announce their intent to borrow up to $2.9 million for water and sewer repairs the first step before actually taking the loan.
Councilmen say part of the money will be used to repair the dam at Bonita's lower lake, which has been drained for more than a year after a leak was discovered. City officials say repaying the loan is not expected to raise taxes.
The new loan comes at a time when $6 million from another, separate loan sits idle in a bank. Councilmen borrowed that money in August to pave and repair city streets but work has yet to begin and a list of streets needing repairs has not been approved.
Henson said the new $2.9 million loan is "totally different. This money will go to address another area of need. It's a good time to borrow the money because of the low interest rates."
Councilmen will vote on their intent to borrow the money at their 5:30 p.m. meeting in the city's municipal courtroom at the downtown police station on Sixth Street.
Councilmen say Bonita's lower lake is in dire need of repairs. The lake has become overgrown with patches of weeds since being drained to search for the leak discovered during a routine check by the state Department of Environmental Quality.
City officials had announced early this year that a $500,000 federal grant would help fund the repairs.
But the Natural Resources Conservation Service, a branch of the U.S. Department of Agriculture, decided there was a greater need to use the money to repair Gallagher Creek because it affected property owners.
Ward 4 Councilman Jesse E. Palmer Sr. said the repair of Bonita Lakes is important to city taxpayers.
MONEY MATTERS
Meridian officials borrowed $6 million in August to pave and repair city streets. Councilmen, though, have yet to adopt a list of specific streets to be paved.
Meanwhile, Meridian is obligated to pay 3.76 percent interest at taxpayer expense on the $6 million loan. The money is currently in an interest-bearing account where it is earning about 1 percent interest.
