The Magnolia City Council met Monday.
City auditor Bob Edstrom was first on the agenda to discuss the Wastewater Department finances. Edstrom said cash flow for Wastewater was pretty good in 2012 and ‘13, started going down the tubes in ‘14, and was in the toilet in 2015. Edstrom reported $1.5 million in loss at the end of 2015, and over $500,000 in negative cash flow last year. He gave the numbers of how much additional revenue would be generated with a rate increase. The numbers he discussed related to an increase of $1.50 or $1.75 per 1,000 gallons used. The current rate is $2.75 per thousand. No action was taken Monday; the discussion will continue.
The Magnolia City Council approved a loan from Farmers Bank & Trust for street paving. It is a 4-year loan, not to exceed $2 million, at 2.149 percent interest. The mayor said the paving project is 60 percent complete.
Aldermen approved a settlement in a federal court case. Jesse Radford filed suit in 2014 against the city and three police officers. He claimed he was mishandled during an arrest at Magnolia Regional Medical Center. The city agreed to a $2,000 settlement to avoid going to trial. Magnolia is responsible for $200 and the other $1,800 comes from the Municipal League.
Barbara Hudgens and Helen Glover were honored as Citizens of the Month. They were the nurses who foiled a baby snatching on February 28th at the hospital.
The City Council also approved an ordinance to amend the 2016 budget, and they approved the appointments of T.G. Connelly and Calvin Daniel to the Planning Commission.
Mayor Parnell Vann gave the annual State of the City report. He repeated the statement several times that they run the city on three fourths of a cent; he was referring to the ¾ percent sales tax that the city receives; the city actually has numerous other sources of income. Vann sang the praises of the police and fire departments. He said the city inspector will continue cleaning up properties, and he said this is the first time the city has ever embarked on repaving this many miles of streets. Vann also continued to push his idea for ball fields and an aquatic center; he expects to have it on the ballot in October. He also continued to push his North Jackson Street project; that would reduce North Jackson from four lanes to two lanes and add bicycle lanes each way. You can expect more on all of those ideas at next month’s meeting.
