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Front Page January 9, 2018  RSS feed

Buffalo Council chooses local funding option

By Mac Shadix


Foundation work continues on the site of the new city hall, civic center. Local funding for the project in the amount of a maximum of $550,000 from Community National Bank and Trust who donated the land for the project and will be a next door neighbor was approved in a Special Called Meeting on January 8. 
Photo by Mac Shadix Foundation work continues on the site of the new city hall, civic center. Local funding for the project in the amount of a maximum of $550,000 from Community National Bank and Trust who donated the land for the project and will be a next door neighbor was approved in a Special Called Meeting on January 8. Photo by Mac Shadix Following the City Council meeting on December 19, where an interested citizen, Mike Glick protested the $25,000 cost for a ‘consultant’ to use a ‘tax note’ to fund $500,000 remaining cost of the new city hall, civic center after Hotel-motel tax monies are spent. City Attorney Jerry Nowlin told the council that it was too small an amount to seek a bond issue for and that a ‘tax note’ was most likely the least expensive way to fund the project. Such a note, he said, would cost about $25,000 for a consultant and would have to be approved by the Attorney General. Glick objected to the fee and asked that local banks be used for the loans. A workshop and special meeting was set for January 8.


The Buffalo City Council in the Finance Workshop on January 8. Left to right: Council persons Martin Housler, Dorothy Farmer, City Attorney Jerry Nowlin, Mayor Royce Dawkins, Dianne Ryder, and Glen Hightower. The Buffalo City Council in the Finance Workshop on January 8. Left to right: Council persons Martin Housler, Dorothy Farmer, City Attorney Jerry Nowlin, Mayor Royce Dawkins, Dianne Ryder, and Glen Hightower. All council persons and the mayor were present except for Council- man Jerry Salazar for the work session that began at 6pm at the Senior Center. Nowlin presented the offers that the city had gotten from the two local banks. Both were very good options and less expensive than a tax note might have been. Citizens Bank had offered a six year note at a fixed 4% rate. Community Bank had offered a 2.5% adjustable rate note for six years with a cap of .05% increase per year depending on available rates. Vice President of Community Bank, Tommy Neyland and Director Jerry Don Sanders were present for the meeting.

During the meeting the cost of the project that Glick was given on Dec. 19 of $1,561,950, plus a payment to the architect \ engineer of $86,000 was raised to $1,710,927. The amount needed to be raised was put at about $510,000. Discussions took place showing a desire to be fair to both of the financial institutions offering funding. Another concern that appeared in the discussions was that there would not be as much Hotel-Motel tax funds to use to fund local events at the promoters of those events had received in the past.

After being assured that there was no prepayment penalty with the loan and that it could be paid off at any time, the council unanimously approved the Community Bank Offer. It will be a one year note with guaranteed renewal at 2.5% interest and a maximum .05 annual adjustment. “We never object to getting our money back.” Director Sanders humorously told the council, referring to prepayment. The motion to approve set the amount at $550,000 but less than that is expected to be used.


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