Issue costs added to city’s $2 million loan
by James Phillips
Mar 07, 2012 | 1266 views | 0 0 comments | 5 5 recommendations | email to a friend | print
The Jasper City Council voted unanimously to add $20,000 to its recently approved $2 million loan to pay for costs associated with having the loan issued.

“There are always issue costs when issuing (financial) warrants,” Jasper City Clerk Kathy Chambless told members of the council.

Chambless said First Bank of Jasper estimated the issuing costs to be $20,000. She explained three options for taking care of the expense: increasing the interest on the loan from 2 percent to 2.3 percent, putting the $20,000 into the loan or just paying the money out of the city’s current budget.

“You could take the money out of the current budget, but I don’t know where to suggest you take $20,000 from at this point,” she said.

Chambless recommended the city add the issue cost to the principal of the loan.

“I performed the calculations, and it is $8,000 less if the city just goes ahead and borrows the additional $20,000 and adds that to the principal of the loan and keeps the interest rate at 2 percent,” Chambless said.

District 1 council member Gary Cowen said he favored Chambless’ idea.

“You are paying today’s cost with tomorrow’s dollars,” Cowen said. “You’ve got inflation working for you.”

The council’s approval of Chambless’ recommendation will increase the total amount of the loan to $2,076,000.

In other action:

•Karen Crump was appointed to the city’s park and recreation board.

•Amy Grice was appointed to the city’s library board.

•The city council approved a request from Lt. Mike Clark of the Jasper Police Department to hold a walk at Gamble Park to benefit St. Jude’s Children’s Hospital on March 31.

•A retail beer, wine and liquor (on premise consumption) license was approved for Sonya Jackson, the new owner of Harrison’s, a restaurant located at 500 Highway 78 West. Jackson told council members the restaurant will reopen soon.

•Council members gave permission to the Arc of Walker County to hold a 5K run at Gamble Park on March 17.