City Authorizes Issuance Of Capital Outlay Notes For City Hall Project

by Dwight Turner

The City of Ardmore, TN Board of Mayor and Aldermen, meeting in scheduled session last Thursday night, voted to authorize the issuance of $300,000 in capital outlay notes, earmarked to fund the construction of a new city hall. The resolution (No. R 07-04-05) also contained provisions for the payment of said notes.

Aldermen Raymond Crabtree, Ken Crosson, Tim McConnell, Alderwoman Laurene Schrimsher, and Mayor Bobby Hastings voted in favor of the measure. Alderwoman Janice Reece abstained and Alderman Garon Hargrove was not present at the meeting.

The resolution states the Board of Mayor and Aldermen has determined that it is desirable of authorize, issue, sell, and provide for the payment of interest bearing capital outlay notes to finance “certain public works projects,” consisting of the acquisition, construction, and equipping of a municipal building and paying the costs incident to the financing of the project.

According to Mayor Bobby Hastings, the payment schedule of $38,000 per year is well within the city’s capacity to pay.

“It is well within our means,” said Hastings in support of the resolution. “We have more than that in interest bearing savings.” Hastings added that the interest rate on the savings accounts were greater than the interest on the payment of the bonds.

“We end up making money by borrowing money,” said Hastings.

Under the terms of the resolution, the capital outlay notes will be designated “General Obligation Capital Outlay Notes, Series 200” and will be issued in registered form, without coupons in minimum denominations of $5,000. The notes will bear interest at a rate or rates not to exceed seven percent per annum.

The mayor also informed the board that the city was required to purchase Builders Risk Insurance for the project and that the cost would be $2,460 for a full year. Alderman Crosson motioned to authorize purchase of the insurance plan and his motion was seconded by Alderman McConnel. The insurance purchase passed unanimously.

In another construction related issue, Alderman Crosson stated that he would like to discuss the feasibility of constructing a new library building in Ardmore. Crosson suggested that funds garnered from the potential sale of the existing city hall/library building be used for constructing a new library.

“I would really like to see a new library built in Ardmore,” said Crosson. “If we sell our existing building, I cannot think of a better way to use the money.”

Mayor Hastings echoed Crosson’s sentiments and suggested the board consider locating the new library adjacent to the new city hall.

“I would like to build the new library next to the city hall, using the same style of brick and columns,” remarked Hastings. “That way both would be very stately looking buildings.”

After a brief discussion, in which the board also reviewed progress toward the sale of the existing city hall/library building, all members seemed in favor of constructing a new library and agreed to look into the matter further.

In other business, the board voted unanimously to authorize the expenditure of up to $15,000 to construct one mini-amphitheatre at John Barnes Park. The board additionally authorized the purchase of three “Welcome to Ardmore” road signs and three trash receptacles to be placed at strategic locations within the city limits.

Alderwoman Schrimsher raised the issue of continued traffic flow problems along Main Street in Ardmore, particularly the portions of the street in front of Dollar General Market and the location of the new Taco Bell.

“Those areas are really congested and there is going to be a bad accident sooner or later,” remarked Schrimsher. “I would like to see a traffic flow study conducted by TDOT (Tennessee Department of Transportation.) After discussing the matter at some length, the board agreed to contact TDOT and request an updated traffic flow study.

In a final action, the board agreed to put $3,000 earmarked for the Ardmore Boys and Girls Club in the new budget, scheduled to take effect July 1, 2007.

The next meeting of the board is slated for Thursday, May 3 at 6:30 PM.