By Joseph M. Morgan
joseph@southerntorch.com
RAINSVILLE, Ala.—The Rainsville City Council voted last week to take out a $1.95 million loan to help fund city sewer upgrades. Councilman Joey Graham said that in August the city was notified that Rainsville had been approved for the $1.95 million USDA Rural Development loan to help fund the project, but was denied the additional $850,000 grant that would accompany the loan.
“The reasoning behind that was they said the city had the financial wherewithal to procure the funds from other means—which is a nice pat on the back. I mean I’d like to have the grant because that’s free money, but it was their way of saying ya’ll have been very judicial with your cash flow.”
Graham went on to explain that the decision had been appealed and the $850,000 grant decision was reversed and now would be awarded to the city if Rainsville is willing to go on the hook for the $1.95 million USDA loan. Graham made a motion to take out the loan that will be paid off in the year 2045 in order to receive the $850,000 grant.
“Anytime you are awarded a grant it is good news,” Rainsville Mayor Nick Jones said. “The money will be put to good use, but there is no such thing as free money. Committing our city to another $2 million in debt and a 30-year loan in order to receive the grant is a very serious decision. It pushes our city’s debt to more than $11 million. When it comes to committing future generations and our children and grandchildren to that kind of debt, it is not a decision that should be made lightly or rushed.”
The council also took up the following business:
• Approval to begin resurfacing Mitchell Drive and Tiger Lane
• Approval to purchase of a new 2016 fire truck for $247,950. A grant will cover 90 percent of the purchase with a 10 percent match, or $25,000 from the city’s fire fund.
• Authorization to prepare and submit a sanitation bid for Sylvania customers.
• Motion to sponsor Children’s Advocacy Center for $1,000.
• Approval to hire one full-time patrolman for the city’s police department, three part-time patrolmen, and two dispatchers.
• Motion to authorize $2564 new steam pressure cleaner
• Motion to retain legal assistance for city sewer project - USDA Rural Development Loan
• Motion to move forward with city swimming pool renovation project
• Motion to Surplus Christmas Lights—40 Old Snowflakes
• Reappoint Jonathan Phillips to Mental Retardation Board
• Post the opening of the Rainsville Police Chief position
• Motion to help Agricenter $5,841 to pay for wooden shavings to be used for ground cover at Ag center events
The Rainsville City Council will meet again on Monday, Dec. 21, 2015.
