The Fulton City Council read for the first time an ordinance which would authorize the $4 million lease-purchase agreement between the city and three area banks - The Callaway Bank, Central Bank and Bank Star One - to fund the city's new warehouse facility.
The loan will be paid back monthly at a principle amount of $33,333 and some change, according to Chief Financial Officer Kathy Holschlag. She reported to the council that while the principle amount will stay the same, the interest rate will decrease each month. This is an "advantageous" route, Holschlag added.
In the agreement, the city will make payments to Central Bank, which then is responsible for distributing to the other two financial entities.
"The city is willing and anxious to put in some of our own funds at the point we start making construction draws," Holschlag said.
This payment schedule, City Administrator Bill Johnson said, is similar to the city's payment schedule for a past project.
"We tried to mirror it as close to city hall as possible," Johnson said.
Because the loan is set to close in early April, the council must take a final vote at its next meeting on Thursday, March 26. The council meeting was rescheduled from Tuesday, March 24 - the same night as the 2015 Kingdom of Callaway Supper.
Council members also voted to transfer $50,000 from the road overlay project budget and dedicate those funds to bettering city sidewalks. The road overlay budget did total to $450,000, before the vote. Mayor LeRoy Benton and a sub-committee dedicated to sidewalk improvement suggested setting aside $15,000 of the $50,000 for part-time employees. The remaining $35,000 will be for concrete and supplies, Benton said. At time of project completion, Benton said the city would evaluate the benefit to the community.
The transfer will not affect funding for the city's Sidewalk Improvement Program, which receives $20,000 annually.
Benton said the city will assess the sidewalks in need of most repair as it analyzes roads for the overlay project.
"...It needs to be done," Benton said. "It's a possible hazard."
Johnson said he hopes to have the sidewalks up to the "baby carriage standard," meaning the sidewalks would be smooth enough that a baby sleeping in a stroller would stay asleep while rolling on sidewalks.
In other news, the city council approved a contract between the Fulton Police Department and the Fulton Housing Authority for additional law enforcement services at a minimum of 40 hours per week. The police department has three officers - Adam Cramer, Brandi Blakenship and Bill Ladwig - assigned to the Fulton Housing Authority residential space. Police Chief Steve Myers said two of the officers spend part of their time patrolling the Housing Authority.
Anne Johnson, Fulton Housing Authority director, said those familiar faces help residents build a connection with officers and make them more comfortable to approach law enforcement. She said the Housing Authority supplies the officers with cell phones, allowing the residents to call with non-emergency questions or concerns. The contract fosters a working relationship, Johnson said, in order to keep the Housing Authority community safe. Myers added that the police department has been conducting bike patrols in the summer months since the late 1990s, and close ties between the organizations improves security of the residents.