City to borrow $800k to pave streets

The City of Clarendon will issue $800,000 in tax notes to help finance a $1.1 million paving project following last Wednesday’s meeting of the Board of Aldermen.

Vince Vialle of First Southwest Company presented a debt service schedule to the board and said all three local banks had agreed to each take a third of the notes at interest rate of 4.15 percent for seven years – slightly higher than the 3.75 percent the city had hoped to get.

“The overall difference will be about $13,000 over the life of the notes,” he said.

Vialle discussed options for bidding out the debt service, which would take at least two weeks and could generate a lower – or possibly higher – interest rate. But the board remained focused on getting financed for a project that could be completed this year.

“I don’t think we have the time,” Mayor Tex Selvidge said. “I think we need to bite the bullet and do it.”

Alderman Michael Tibbets said he thought the city should go with the local banks, and Alderman Tommy Hill made the motion to accept the 2005 bond series and authorize the mayor to sign the placement agreement with First Southwest. The motion carried unanimously.

Vialle said the city could have the money in hand by the end of March if all goes smoothly. The first annual payment would be due next February.

City engineer Che Shadle said his firm expected to finish shooting elevations last week and would immediately get to work on plans for the estimated 50-block project. Those plans should be finished by the first of April, and the city would put the project out for bids at that time.

In other city business, Alderman Janice Knorpp gave the final report on the renovations at the Smiley Johnson Municipal Airport. The project was finished under budget, and the city will receive a refund in the amount of $11,626.71. Knorpp recommended that money be put in a certificate of deposit marked Airport Maintenance Account and used strictly for future maintenance on the airport. The board congratulated Knorpp on a job well done.

City Administrator Sean Pate discussed hiring contract labor to read water meters. The move would free up city workers to spend more time working on preparing streets and utilities for the upcoming paving project. The board asked him to present figures on the idea at the next meeting.

Mayor Selvidge asked the board to consider taking $250 from the Motel Bed Tax to help pay for sand and clay at the new softball field. The board approved his request.