Mayor George Flaggs Jr. wants to use money the city is receiving from the state as seed to develop a comprehensive paving and infrastructure program.

Vicksburg is expected to receive about $820,000 from the state to use for street repairs and for water and sewer infrastructure needs. The money was included in a bill approved by Legislature at its August special session to divert revenue from sales tax collected on Internet sales to cities and counties for capital improvements.

Flaggs said at Monday’s meeting of the Board of Mayor and Aldermen he wants to find a way for the city to “maximize” that money to create an infrastructure program for the city.

The city has already spent about $8 million to pave city streets under the capital improvements bond issue the board approved in 2015. Flaggs said Wednesday he’d like to do a lot more if he can leverage the anticipated state funds.

“I’m looking at trying to have a financial advisor look at that money and see whether or not we can structure it where we can borrow long-term money against it without hurting our constitutional cap,” he said.

Cities and counties are limited by state law as to how much they can borrow in general obligation bonds. The city in 2015 borrowed $18 million in general obligation bonds, which are paid by city taxes, for its capital improvements program.

Flaggs said the $23 million borrowed for the sports complex is not included under the cap because it is funded by a dedicated tax. “I believe we’ve got 40 percent left (to borrow) before reaching our cap,” Flaggs said.

If the city can find a way to borrow extra money off the $820,000 and not violate the cap, he said, “We can borrow X-number of dollars and create an opportunity to repave more streets and improve our infrastructure without any tax increase, because that money is considered rebate money.

“That’s what I’m trying to do. I’m trying to convert that money into a creative way of financing some long-term money for major pavement repair and infrastructure improvements. This will allow us to put major repaving and resurfacing into the neighborhoods and parts of Clay Street.”