The Signal Mountain Town Council is trying to find out how much money costs – as well as whether or not the town can pay the price.
With a new Public Works building to fund along with possible improvements to the Mountain Arts Community Center, the Council is considering borrowing money from the Tennessee Municipal League bond fund. Related discussion during the Council’s Sept. 30 work session was filled with calculations of possible yearly payments.
“If we ever needed capital for necessary projects … now is the time to borrow the money,” Councilman Dick Gee said during the work session. “There’s an elephant in the room we are not addressing. Are we going to spend this money or not? I guess I’d like to know where we are. It seems like a slam dunk on the Public Works building. Where are we on the MACC?”
Gee originally initiated a conversation during the Council’s Aug. 26 work session about determining the MACC’s value as well as whether or not the Council wants to take out a substantial loan to fund the building’s needed improvements (refer to the article at community.timesfreepress.com/news/2013/sep/11/value-arts).
“As I can tell, there is no money in the budget for debt services,” Town Manager Chris Dorsey said during the most recent work session. “The only way to pay the loan [if the Council takes out a loan right now] is to amend the budget.”
If the town takes out the loan later in the current fiscal year – for example in January – the town would not have to pay the first interest payment until the 2014-2015 fiscal year, he added. Thus, the Council could avoid amending the current budget and gain time to prepare for the forthcoming loan payments.
To fund the Public Works building and only the most necessary improvements to the MACC, the town could be looking at borrowing up to $1.5 million. The Council may decide to borrow more or less, or none at all, Dorsey emphasized in a follow-up phone interview.
The payments for a loan could be spread over 20 years, depending on the payment plan, he added.
“Will the Public Works building last for 20 years?” Councilman Bill Wallace asked during the most recent work session. “[In regards to the MACC], do we want to put money into what could possibly be a depreciating asset? Are we sure we have figured out all the [MACC’s] problems?”
According to the Hamilton County Assessor’s Office, no value has been assigned to the MACC building, though the land it sits on has a value of $182,000, said Dorsey.
The Council asked Dorsey to prepare a resolution to define the intent of the Council toward funding the Public Works building and the MACC. No specific date was given as to when the Council will vote on the resolution, except that it will be during a future public meeting, said Dorsey.