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Council Member Does Not Want $1.4 Million Loan, Heated Discussion Erupts
October 7, 2008
Century may have already received a big check for $1,755,000, but a Century town council member does not want to see the town to enter into a loan agreement for the money. She made that announcement Monday night, leading to a heated discussion.
‘I no longer feel like I can support the Rural Development loan for the water project,” council President Ann Brooks abruptly told the council at the end of Monday night’s meeting. “Out town is obviously not able to live within its means.”
The town accepted a ceremonial $1,755,000 check back in May from the USDA for water projects, but never signed the loan documents to receive the actual funds. The town is facing a $161,000 but shortfall this year, with those monies to come from the town’s reserve funds.
Chamber President Benny Barnes addressed Brooks, saying that Mayor Freddie McCall would have never suggested that the town enter into the agreement with the United State Department of Agriculture Rural Development if the town did not have the means to repay the loan.
“If we had not gone into debt years ago, we would not have the water system; we would not have the gas system,” Barnes said. “It is important to understand that economic development is an investment. I don’t see what your really big concern is.”
“We are going to spend $161,000 more than is coming in,” Brooks said.
“I thought you were smarter than that,” Barnes replied. At that point, council member Henry Hawkins asked Barnes to sit down.
“That’s OK; I can protect myself,” Brooks said.
“I know how to go home,” Hawkins said, as he gathered his things and stood up from the council table.
“That’s being childish,” Brooks told Hawkins. “Please sit down.” Hawkins remained in the meeting.
“It is because of our financial condition and the economy,” Brooks said, explaining her announcement.
McCall said the town needed the project, especially a new elevated water tank to improve the water supply for firefighting.
“If the Piggly Wiggly burnt tonight, we’d run out of water,” McCall said. “If you should have somebody else come to town…and we’d did not have enough water storage, they wouldn’t come to our town.”
Brooks suggested the town look at grants again in order to find a way to make the $71,000 yearly payment on the loan.
“The payment? That’s a gimme,” McCall said, noting that he had negotiated an $88,000 a year increase in the amount the Florida Department of Corrections pays for their water and gas service at the Century Correctional Institute.
The USDA loan, when approved by the council, was to be used for a half million gallon elevated water storage tank, three back up generators, construction of a new six inch water main and a booster pump station. Part of the original project was to be used to provide water to underserved residents along Backwoods Road.
The Backwoods portion of the project was later removed from the original proposal and funding was appropriated in the town’s current budget for the Backwoods Road improvements. That put the loan amount at about $1.4 million.
The council took no action on the loan at Monday night’s meeting.
Pictured above, left to right: Century Town Council members Ann Brooks, Sharon Scott and Nadine McCaw; Mayor Freddie McCall; USDA Rural Development State Director Ronald Whitfield; Dale Long from Fabre Engineering; USDA Area Specialist Kathy Bechard; and New Life Baptist Church Pastor Irvin Stallworth accept a ceremonial $1.755 million check back in May. NorthEscambia.com file photo.
Comments
One Response to “Council Member Does Not Want $1.4 Million Loan, Heated Discussion Erupts”
It’s nice to see someone in government actually acting responsibly and showing restraint when it comes to budgets and spending. If our Federal Government would take a lesson from Mrs. Brooks, perhaps our national economy and finances wouldn’t be in such trouble now. It makes sense to refrain from taking a $1.4 million dollar loan when you are already living beyond your means (in the case running a deficit).
Considering the rough times we as a country have recently begun experiencing, the fact that they are expected to get worse, and that most economists are predicting that it will be years before our economy recovers to the level it was at 8 years ago, we need to focus on being fiscally responsible. Giving all of your city employees raises, followed by yearly bonuses, spending $161,000.00 more than city makes, and they turned around and tried to borrow $1.4 MILLION dollars and some of them got upset when someone pointed out that it was a bad idea?! Do our city officials realize what’s going on in this country and how many people are losing their jobs, facing foreclosures, how many businesses are going under and that businesses, cities, states, even the federal government are in dire straits right now?