The
City of Alexander has
acquired a loan that satisfies a requirement involving two loans
received from the United
States Department of Agriculture (USDA). Under the agreement
the city had 10 years to establish a “Debt Service Reserve”
account equal to one year’s worth of premium payments. The amount
needed for the account is $21,960.
The recently
purchased 2017 Mahindra Tractor was used as collateral on the
low-interest loan. It was purchased for the street department,
without the need of a loan, for $32,200.
In 2005 the city
took out two loans to buy and renovate what is now city hall. The
first loan was used to purchase what was the post office building and
property for $364,000. The second loan of $56,000 funded improvements
including the addition of the courtroom and a new roof. Shirley
Johnson was mayor at the time.
At the April council
meeting Mayor Paul Mitchell told council members the city had 10
years to comply when each loan was first taken out. Since the city
doesn’t currently have an extra $21,960 in the General Fund his
suggestion was to take out a loan then put that money into a bank
account. The city could make monthly payments and he suggested there
may be enough unspent revenue in the General Fund, at the end of the
year, to pay off the loan.
In another financial
issue; a reduction of revenue flowing into the General Fund has
forced the Alexander City Council to impose a spending freeze on all
non-essential spending from that fund. Spending is limited to items
necessary for maintaining the operation of the city. None of the
other funds are affected.
In other action
during the May 15 council meeting;
Council
members approved selling all unused city vehicles. Most of the
vehicles will come from the police department now that the cars that
can’t be driven have been replace with new ones.
Mitchell has
been given permission to research the purchase of a used tractor
equipped with a bat wing mower. Similar to a bush hog, the bat wing
is lowered to one side of the tractor allowing for the mowing of
ditches too dangerous for a drag-behind mower.
The mayor
will also be looking for a used SUV to serve as a K9 unit. The
council approved buying an SUV with revenue from selling the police
department’s Dodge Durango and insurance payments received after a
police car was totally destroyed by fire. About two months ago an
electrical short in one of the Alexander police cars started a fire
under the hood. It was sitting on the side parking lot at city hall
at the time. The fire destroyed that car and spread to the police car
next to it destroying it as well. The second police car couldn’t be
driven so it wasn’t insured. One of the current Alexander police
officers has his own K9 partner but needs a vehicle.
The next regular meeting of the Alexander City Council is
Monday, June 19. Meetings start at 6 PM and are held in the courtroom
at the City of Alexander Municipal Complex. The public is invited to
attend.