Century Moves Toward Borrowing $1.7 Million, Conducts Other Business

March 4, 2008

The Century Town Council voted Monday night to move forward toward borrowing about one and a half million dollars from the Rural Development Program for projects around the town.

The money would be used for standby generators, water main improvements and a 300,000 gallon elevated water tank to improve water pressure, according to Mayor Freddie McCall.

The town’s accountant, Robert Hudson, told the council that the $1.7 million, 40 year loan would have an annual payment of about $87,000. But if the council could obtain state funds in the amount of about $300,000, they could “buy down” the loan to $1.4 million with an annual payment of about $59,000. Hudson said the water department had about $85,000 in “free cash flow” during the 2007 fiscal year.

Dale Long of Fabre Engineering told the council that the project had been in the works for several years, and that they needed to move forward before the funding opportunity was lost. He told them that a vote to move forward with the application process would not obligate the town to actually borrow the money at this point, nor would it cost the town any money at the present time.

The town recently sent a letter to the state prison system requesting over a half million dollars in back payments for gas services. While the state had made payments for service at the Century Correctional Institute, those payments to the town total about $568,000 less than the invoiced amounts. The council agreed that they money could be used for the “buy down” on the development loan.

The council approved a motion by Nadine McCaw to move forward in the paperwork process of applying for the loan, with the stipulation that the town not be obligated for anything at this time.

“We have nothing to lose by letting them go forward,” Council President Ann Brooks said.

In other business, the Kevin Merchant from Century Little League approached the council about the little league running the concession stands for this year’s ballgames. While the council had already approved such at a previous meeting, Merchant said he wanted to publicly come before the council with the request because, “I don’t want anybody thinking anything was done behind closed doors.”

State ethics complaints were filed against Evelyn Hammond, former Century mayor, in regards to her previous handling of the concession stands.

The council also approved Merchant’s request for help in installing “safer bases” purchased by the league at the city’s ballpark.

The town council approved buying out a uniform services contract. At a recent council meeting, the mayor’s request for $932 to purchase t-shirts to replace the rented uniform shirts for 10 employees. But McCall later discovered that the uniforms were provided under a 12 year contract that could be bought out for a one time payment of $1,320. The council approved that payment.

In other business, the Century Town Council:

  • voted to authorize the town clerk to pay utility bills as they are received. Gulf Power recently cut power off to the town’s Habitat Building after a bill went unpaid. Bills in Century were not paid until approved at the first Monday of the month meeting of the council, forcing some to become delinquent. The town will now vote to pay bills at each of the two council meetings per month. A letter explaining the town’s bill payment policies will be sent to all vendors, except the utility companies.
  • voted 4-1 to hire Debbie Nichols at $23.50 per hour up to a maximum of 20 hours per week to work on the town’s Enterprise Zone paperwork and assist in applying for various grants. Council member Henry Hawkins cast the lone dissenting vote.
  • voted to hold a committee meeting to review bids for the review of the town’s comprehensive plan.
  • heard from Georges Van Nevel from Helicopter Technologies. Van Nevel stated that his company once again had cash flow following a January federal raid. He said he had made his March payment to the town and would attempt to make back payments as soon as possible. “I assure the council that the town is not going to lose any money on me,” he said.
  • heard from resident Jerry Simmons who complained Allied Waste does not pick up his garbage as they should. McCall stated he would look into the problem.

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Written by William Reynolds · Filed Under News