News Column

Fiscal Court seeks to borrow $1.5 million for roads

August 13, 2014

By Joe Lewis, Journal-Times, Carter County, Ky.



Aug. 13--Carter Fiscal Court met last Tuesday night to consider borrowing money for a massive road resurfacing project.

The Court conducted the first reading of an ordinance that would allow the county to borrow $1.5 million for road resurfacing throughout the county.

"This isn't a bond. It's a lease we were able to get through KACO," said Judge-Executive Charles Wallace.

According to a letter from the Kentucky Association of Counties (KACO) Leasing Trust, the 10-year loan would be financed at a rate of 2.91 percent for the first five years. After that period, the loan can either be paid off or refinanced at that year's current interest rate.

"I estimate that we will be able to resurface about 15 percent of all the roads in the county with this money," said Wallace.

When asked about the financial burden to the county, Wallace said that his plan is for the loan to be repaid with proceeds from the road fund over the next five years.

Using a standard amortization schedule over a five year period, the county would be responsible for making monthly payments of $26,893.09 to repay the loan.

Totaling those figures up over a year, this means the county would be committing $322,717.08 of the $2,390,924 of road fund appropriations each year, or about 13.5 percent of the entire road fund budget.

According to Wallace, each of the county's five districts would receive $300,000 for resurfacing projects.

No set plan is in place as to which road would be repaved,but Wallace indicated that citizens would need to contact their magistrates if they feel a particular road needs attention.

The Fiscal Court must conduct a second reading of the ordinance and have it published in the Journal-Times before it officially becomes law.

There is currently no date set for a second reading of the ordinance but Fiscal Court will hold its next regular meeting at 10 a.m. on Tuesday, Aug. 12, in Room 221 of the county courthouse.

Joe Lewis can be reached at jlewis@journal-times.com or by telephone at 286-4201.

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(c)2014 the Journal-Times, Carter County, Ky.

Visit the Journal-Times, Carter County, Ky. at www.journal-times.com

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Source: Grayson Journal-Enquirer (KY)


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