County discusses idea of issuing as much as $5M in bonds for repair projects
Published 9:17 am Tuesday, December 13, 2016
Warren County supervisors are considering borrowing between $5.3 and $5.5 million in general obligation bonds to fund capital projects at the Port of Vicksburg and the Warren County-Vicksburg Public Library, and repairs at Riverfront Park.
The supervisors met with Demery Grubbs of Government Consultants Inc. of Jackson, a company that advises local governments on financial matters, during a Monday work session.
The board took no action, and county administrator John Smith said there would be more discussion before the board makes a decision.
“We have to get a better idea of what the numbers are,” he said.
County officials in 2015 discussed borrowing money to install a new crane at the port and handle other capital projects, including a new radio system, but took no action.
Smith outlined the projects facing the county:
• Installation of an E-crane on a pedestal at the Port of Vicksburg, $4.3 million.
An E-Crane uses a design based on a parallelogram-style boom that provides a direct mechanical connection between the counterweight and the load to remain balanced.
The project involves installing the new crane on a pedestal next to the existing T-dock at the port, and building a two-lane bridge to it. That option would not only allow for access to the crane if something happens with the T-dock, it also gives the port an additional loading dock.
Smith said the E-crane project “would be the first Port of Vicksburg improvements made in a long time.”
County and port officials have discussed installing a new crane at the port since February. It is seen as a crucial element in an attempt by WATCO, which manages the port, to attract a new business to the port that is expected to double the port’s present off-loading.
•Replace the roof at the library, $650,000.
•Replace the chiller at the library, $150,000.
•Pay the county’s $150,000 share of the cost to repair a landslide at Riverfront Park.
Riverfront Park, which is owned jointly by Warren County and the city of Vicksburg, is located on a bluff overlooking the Mississippi River off South Washington Street, south of Ameristar Casino.
A section of the bluff on the south end of the park began slowly sliding off the bank in April 2015, taking part of the park’s perimeter fence and walking trail, and threatening a playground area and its equipment. The slide forced officials to close off the area.
The total cost of repairing the slide is $300,000. The Board of Mayor and Aldermen allocated $150,000 for the repairs in April.
Smith said the supervisors have also received requests from the county Recreation Department to make the pavilion at Clear Creek Golf Course handicap accessible and renovate the tennis courts there. No estimates were given with those requests.
If the supervisors decide to move forward with the bond issue, it will be in 2017, and they will have to issue an intent resolution that is published announcing the board’s intent to issue the bonds. Once the resolution is published, voters can file a petition signed by 10 percent or 1,500 registered voters protesting the issue and calling for a referendum on the bond issue. If the petition is certified by the circuit clerk, an election will be held on the bond issue.
If there is no opposition, the board can move ahead with the process of issuing the bonds.
If the board issues the bonds in January, it could have its money by the end of April or the first of May, Grubbs said.
“It’s going to take about 90 days from the day we start (the process to get the bonds) until you actually get the money,” he added. “Once we get the money in, you’ve got to start spending it within six months. You’ve got to spend 5 percent within the first six months. Then you’ve got to spend 85 percent of it within three years.”
He said the first payment would be one year after the bonds are sold. Bond payments on $5.5 million would be about $375,000 to $380,000 a year, based on a 20-year loan.