Alexander has obtained a loan for a loan

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.