Council accepts EDC's contribution on grant
By Lori Mellinger editor@bullardnews.com

Bullard Economic Development Board President Clay Thompson said he feels comfortable in funding a lift station for the city from half-cent sales tax money.

The city went to BEDC O after exhausting other options in finding funding for a large sewer project - funded in part by the Office of Rural and Community Affair.

But when City Manager Larry Morgan took the proposal to the group, they began studying the idea.

"I feel more than comfortable participating in the grant," Thompson said. "In addition to still having enough revenue for other projects, funding the city's portion of this grant will open up the Hwy. 69 corridor for future development."

When Morgan approached the group, they put together a committee to study both the EDC financials and projected revenue from the half-cent sales tax.

EDC members Thompson, Eileen Gottschalk and Sam Vercher served on the committee.

Thompson, who serves as market director for Franklin Bank, put together a spreadsheet based on a revenue stream of about $5,700-$6,600 monthly - which - he said was a conservative estimate.

"This is a good opportunity for the group to get its feet wet," Thompson said.

The group voted unanimously to fund a lift station for the sewer project - between a range of $250,000 to $300,000.

EDC will take out a loan, and they've already done the math on interest rates and monthly payment schedules.

With the loan payment likely to equal less than a third of the group's income, Thompson said there's still money for other projects.

"This won't tie our hands," he said. "It will still give us money to be more aggressive in other development avenues.

"Ultimately, this will help every aspect of the city."

Vercher agreed.

"This is a project that will never stop giving back," he said.

Gottschalk made the presentation on Tuesday to city council members who accepted the proposal. Councilwoman Stacey Thompson abstained from the vote because there was a conflict of interest.

After some time spent agonizing, the City of Bullard is ready and able now to finance the sewer expansion project across U.S. 69 into the Rollingwood Hills addition.

The city tried other routes before approaching BEDCO for the money, but resorted to the corporation when other avenues failed.

From June of 2007 to November 2008, the state comptroller deposited $34,000 into BEDCO's coffers.

In February, the state office paid $20,000 in its quarterly payment.

"We're looking at an average of at least $6,600 a month coming in from the sales tax," Morgan said. "So this helps."

Morgan said it helped the group make the decision and it aids in their financing, too, because a loan based on sales tax - by law - is guaranteed to be repaid.

"This makes it more attractive to lending institutions if BEDCO decides to finance through a loan," Morgan said. "It also helps tremendously with interest rates offered."

Once the contract is let, the city will need about a 15-foot swath of land, traveling over several landowners' property, along with a location for the lift station.

The city received the grant

for a first-time sewer project last year in the amount of $250,000 - which would benefit about 40 households in Rollingwood Hills - in addition to the stretch of Hwy. 69.

The grant was made available through the Community Development Block Grant Program (CDBGP) of the U.S. Department of Housing and Urban Development.

The purpose of the grant is to support community development projects such as sewer, water and housing rehabilitation to applicants.

"We're trying to make this better for everyone," said City Engineer Brian Capps.

Capps explained that by opening up sewer availability to the Rollingwood Hills addition, Hwy. 69 landowners would have access to sewer.

"This will ultimately make their land more valuable should they choose to develop or sell it," Capps said in an earlier interview.

The proposed 7,400 feet of sewer line would cut over the highway to run to that area of town.

The problem, Capps said, was the city didn't have the money to fund the entire project.

The city was informed in July 2007 of the grant, said Wanda Vance, of Gary Traylor and Associates, who wrote the grant for the city, said the grant was a great opportunity.

The project, she and Capps estimated, would take about two years for the city to complete.

The funds provided by this CDBGP grant can be used for water and wastewater improvements, including first-time service, and for housing rehabilitation for low-income households.

Other projects, including street paving and drainage, can be completed using the money provided by a CDBGP grant.

The CDBGP program is administered by ORCA.