WEST POINT —
West Point mayor Kenneth Kilgo has tried in the past to get his council to vote in favor of paying off the town’s sewer debt.
While his previous pitches proved to be unsuccessful, that wasn't the case Monday night, as council members voted unanimously to pay off the town's remaining balance by the end of the fiscal year, which ends September 30.
"I think this is the right thing to do," Kilgo said. "It really is."
Based on the figures Kilgo presented to the council, West Point received a 15-year fixed-rate loan from Traditions Bank for approximately $159,000 at a 4.25 interest rate in August of 2009 upon completion of the STPE sidewalk and curb gutter project, and the USDA Appalachian Regional Commission West Point Wase Water Treatment facility.
Two years later, while discussing the town's financial stability, Kilgo recommended the council consider refinancing its debt for a 24-month note, which they did in October of 2011.
Currently the town owes $87,892.00. Kilgo said they would need to pay at least $29,000 per month for the next three months for the loan to be paid off.
"Just on sales tax revenue, we'll hit from $15-18,000 a month," Kilgo told council members. "We can pay this half-a-million dollar system off, be debt free, still have six months reserve, and have it built back up over $100,000 by the beginning of the year."
Kilgo added the town's growth's played a large impact on being able to erase the debt. Since 2010, he said West Point has seen a 49 percent increase in its population and in its tax revenues.
"Jerry (Smith) and I went to Washington D.C. and met with the U.S. Census Bureau and got a projection, so we knew where we were going with this thing," he said. "We knew we could pay for this thing. When I saw our revenue had doubled, I went back and refinanced this thing for two years, with the agreement we would go back and look at it as we progressed. I started this thing, and I like to finish whatever we do."
In other business:
- The council appointed poll workers for the August 28 Municipal Elections.
- The council discussed the job description for the Park Director position.
* Ashley Graves can be reached by phone at 734-2131, ext. 225, or by email at firstname.lastname@example.org