McMinnville officials have rejected a measure that would have paid $2 million toward the Civic Center’s $9.2 million renovation and expansion project, bringing the amount borrowed down to $7.2 million.
It was a unanimous thumbs down by the Board of Mayor and Aldermen for a resolution that would have designated $2 million in local option sales tax money – paying $1 million of expenditures at the beginning of the project and paying $1 million of expenditures at the end of the project.
Alderman Mike Neal, who initiated the measure as a way to lessen the city’s debt, spoke out against it.
“After further consideration, I have decided that I don’t believe this is the way to go,” said Neal. “In looking at our projected bottom line in our general fund next year, it’s showing $2.4 million. That’s including this money. If we jerk $1 million out, that will take us to a balance of $1.4 million roughly. If we do the other $1 million, that will bring us to approximately $400,000. That’s spooky to me. Even though I pushed to have this put in, after further review, I think it would be an unwise decision.”
The $2 million would have come from the lawsuit settlement between the city of McMinnville and Warren County government over local option sales tax. City officials earmarked any funds received from that settlement toward capital projects.
Alderman Kate Alsbrook suggested a capital improvement plan, because the resolution that designated local option sales tax revenue to be used exclusively on capital improvement projects required a plan, but one was never completed.
“In order to decide how we are supposed to spend this money, a capital improvements plan was to be adopted by the board. That was in January of 2013,” she said. “I don’t believe the department heads were consulted on what’s pressing in every department. If there were needs in departments in 2013 that have not been addressed, I think it’s worth looking at and starting the process of a capital improvements plan.”
A planning session between board members and department directors will be set to discuss needs within each department.
