Alexander council approves temporary five-year loan

As the saying goes, “Timing is everything.” And, this was not the time for a dip in sales tax revenue distributed by the state.

Two police cars, ordered last year by the City of Alexander, have arrived at the dealership. One has been outfitted with all the bells and whistles required of a modern police vehicle and is ready to be picked up. The plan was to pay cash, as the city has done with the purchase of other vehicles in the past two years. Unfortunately revenue from a one-cent city sales tax, a portion of which goes to the police department, has dropped.

At the January 28 council meeting Mayor Paul Mitchell presented a proposal to council members that would allow him to negotiate a bank loan to pay for the vehicles now instead of making the dealer wait for sales tax revenues to return to normal. Police Chief Robert Burnett also emphasized the department’s need and urgency to get those vehicles to the officers.

Interim Treasurer JoAn Churchill explained to council members the bank needs a copy of the meeting minutes showing the council gave the mayor permission to negotiate the loan and approved, “A minimum (dollar) amount that you can pay on the principal.” She added if the city had to miss a payment it would still have to pay that month’s interest.

Councilman Jeff Watson asked about the interest rate. Mitchell explained he wouldn’t know that until he’s given permission to negotiate the loan.

Mitchell explained his goal was to make the monthly payments until sales tax revenue returns to normal and then pay off the loan. He expects to be able to repay the loan this year.

After much haggling, and some confusion over setting a “minimum” payment, the council agreed to approve a five-year loan for $60,000. Five years is the maximum length of time a municipality can legally take on a loan. The $60,000 amount was chosen because it works out to a $1,000 monthly payment, plus interest, and it will be enough to pay for the cars, additional insurance and other miscellaneous expenses.

In other actions:

The council approved amending the 2017 budget to include what’s called, “Accounting Share.” Interim Treasurer JoAn Churchill explained how the various departments (fire, police, streets, parks, and Administration of Justice) have each been paying the accounting department $300 per month to reimburse it for the cost of maintaining those department’s finances. It was started several years ago to help the general fund with the cost of paying for a bookkeeper and other accounting expenses.

She said, “It’s been going on for years,” but the meeting minutes showing when the council at the time gave permission can’t be located. State auditors have begun the annual audit for 2017 and want proof of approval. She added approval was included in the 2018 and 2019 budgets.

The council approved the, “Organization of City Council,” for 2019. The document lays out how meetings will be conducted.

Mayor Mitchell announced the resignation of the city’s court clerk. He said he’s already received one resume and is expecting another. In a Facebook post Churchill has provided information on the position. “MUST BE EXPERIENCED - Interested parties should bring your resume to City Hall located at 15605 Alexander Road, or mail to P O Box 610 Alexander, AR 72002. Pay scale from $25,480.00 to $29,640.00, Based on experience.

Mayor Mitchell announced the city has been approved to receive a $250,000 state grant for street improvements. (See article here.) He said the next step is for the council to approve a resolution accepting the grant. When the city received the same grant in 2015 he said the bids went out in September and paving began in November.

Council members approved adding the north end of the former Human Development Center to the city park system. The property is now owned by the city. Under a lease agreement negotiated by the Arkansas Department of Human Services, Pathfinders, Inc. has use of and must maintain the area south of the old hospital building. Mitchell said behind the hospital is an area with a walking trail. He wants to make it available to the public but it needs to be repaired before it can be used safely.

Fire Chief Mark Ridgeway announced another fire training session will be held in Alexander in March. He said it will be similar to the one held in the city last year but with more fire departments participating. As in 2018 the old hospital building at the former Human Development Center will be used as a training site.

Councilman Harold Timmerman announced the Alexander American Legion Post AR 28 will have a pancake breakfast this Saturday morning. The fund raiser for the post will be at the former Alexander Town Hall, 15412 Main Street (behind Hess) starting at 7 AM and, “Ending when we either run out of food or run out of people,” Timmerman said. Prices are $4 for children from ages six to twelve, $8 per adult or $15 per couple.

The next monthly meeting of the Alexander City Council will be held Monday, February 25, 6 PM, in the courtroom in city hall. The public is encouraged to attend.