Monday, March 4, 2024–1:53 p.m.
-David Crowder, WRGA News-
In the past, bonds have been issued to kick start special purpose, local option sales tax projects in Rome and Floyd County. However, with increased interest and finance costs, officials are looking at other options.
Rome City Manager Sammy Rich told the city’s finance committee Monday that one option could be for the city to borrow money from itself.
“The county ran the numbers, and to borrow $50 million would cost us around $10 million,” he said. “So, with 50 we get 40. If we borrowed some amount of money, and maybe thought about borrowing from ourselves to kick start some city projects, that’s the thought of what if. Theoretically, if we borrowed some money from ourselves, we could pay ourselves back with interest, instead of paying another entity. That way you would save interest and the issuance cost.”
The city has taken this approach before. The city borrowed money from its insurance fund to pay for the construction of a mausoleum at Myrtle Hill Cemetery a few years back. Those funds have already been repaid.
In November, voters approved the latest SPLOST referendum which includes over 22 million dollars for a new police headquarters. There is some breathing room for that project since the city has secured property off Technology Parkway for a temporary headquarters.
“We’re not over the barrel with that currently, because we’ve got a great solution,” Rich said. “However, if some great opportunity comes along, we could revisit that. To me, it’s not an all-or-nothing because we have some options. Still, we need to prioritize what we want to get done.”
Other city projects include structural repairs to the clock tower, radios for the police department, paving and infrastructure, a Jackson Hill to Ridge Ferry connector boardwalk, Eagle Park renovations, and sewer expansion for Enterprise Corner.
Other projects, such as the purchase of land for economic development and improvements to Chulio Road are joint projects with the county.
“Chulio, we know that you’re going to get a lot of pressure, and that’s split between the county,” Rich told the committee. “So, that is one of those where we could advance some money to get that project rolling.”
According to City Commissioner Wayne Robinson, who serves on the finance committee, voters want to see projects start sooner rather than later.
“Like the 2013 SPLOST where we still have a few items that need to be finished up, eleven years have passed,” he said. “They want to see immediate action. “
Commissioner Jim Bojo, who chairs the committee, added that he would like to see a prioritization of projects on the list. Rich agreed, saying there were other things to consider when prioritizing the projects other than money.
“Even if you had every penny in hand, it’s effectively impossible to try and deliver everything at one time,” Rich said.”
