| City hall, rural fire fees hot topics at Martin informal |
By: By Sabrina Bates, Chief Staff Writer
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City hall relocation and rural fire fees were the topics of discussion for Martin’s Board of Mayor and Aldermen Tuesday night during it’s informal board meeting.
Board members were all in favor of placing two resolutions on the agenda in preparation for the board’s formal meeting set for Monday evening.
The first resolution would allow the City of Martin to issue three-year taxable capital outlay notes for $1.5 million for the purpose of purchasing the First State Bank building with interest only to be paid for the duration of the notes.
As Martin City Recorder Chris Mathis explained, the three-year note is an interest only note that allows the city to pay only interest on $1.5 million for the duration of three years. Mathis said the money the city currently has allocated to the Weakley County Detention Center would see its last payment in 2010. After 2011, the City would recoup a net of $274,000 a year with $60,000 of that money earmarked to the Weakley County Joint Economic Development Board.
According to a letter of intent between Martin Mayor Randy Brundige and First State Bank, the city is estimating the payments on the future city hall location to be approximately $86,000 a year. First State Bank will remain in the building until a new location is built for banking operations thereby leasing the current building on University Street from the City of Martin during that time.
Board members agreed to place the resolution for the interest only note on the agenda.
In related news, aldermen chose to put a second resolution on the agenda for Monday night which states the City of Martin is authorized to issue tax-exempt bonds or enter into a loan agreement with a public building authority in the amount of $1.5 million to provide long-term tax exempt financing for the purchase of the First State Bank building. Brundige explained board members must determine a long-term tax-free plan when the city begins making payments on the building within three years.
Board members will vote on both resolutions Monday evening.
A public hearing is also set for Monday when board members will decide on an ordinance recommended by the city’s public safety committee two months ago to increase rural fire fees for residents living outside the city limits.
Martin Fire Chief Russell Schwahn offered board members a break down of incurred costs to the department since the last rural fire subscription increase in 2001.
Since 2001, the total number of rural fire calls the department has responded to increased from 31 to 238 in 2007. The total number of mileage the department gained as a result of those calls increased from 132 miles in 2001 to 1,262 miles in 2007.
According to Schwahn’s report, there are 1,740 rural fire subscribers in Martin. At $70 a year, if all of those subscribers paid rural fire fees, the revenue generated would be $121,800. By June 30, 2007, the total number of subscribers that paid rural fire fees accounted for only $86,800. Those numbers generated a $35,000 loss in revenues for the department.
Schwahn’s report also cited an increase in diesel fee from $1.52 per gallon in 2001 to $3.93 a gallon as of April 1, 2008.
The board will consider increasing rural fire fee subscriptions from $70 a year to $100 a year. A public hearing on the ordinance is set for 5:15 p.m. on Monday.
In other news, board members voted to allow the mayor to accept a low bid on the lease of two boom trucks for the public works department.
Brundige stated one boom truck is completely non-functioning and the second boom truck is “limping.” The total cost for leasing the boom trucks for two years is $60,000.
The board will meet at 5:15 p.m. on Monday, April 7 for its formal meeting in the courtroom of city hall.
WCP 4.03.08 |
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