Oktibbeha County supervisors took the next step Monday toward funding Blackjack Road improvements and are mulling the prospect of issuing up to $10 million in bonds for other improvement projects.
Supervisors unanimously voted Monday to issue an intent notice for a $4.5 million-maximum general obligation bond that will fund Blackjack Road improvements and discussed an additional issuance — one that could range between $5.5 million and $10 million — for other projects. They stopped short of committing to another notice before figuring out how to pay for its note and how to spend its proceeds.
While the Blackjack Road issuance is not expected to require a tax increase, District 1 Supervisor John Montgomery, District 3 Supervisor Marvell Howard and District 4 Supervisor Bricklee Miller said board members need more time to figure out a plan forward with the second potential bond.
Work session
A special-called work session was scheduled for 7 a.m. Dec. 1 to discuss the second part of the overall road bond.
District 2 Supervisor Orlando Trainer and District 5 Supervisor Joe Williams urged their colleagues to approve at least an additional $10 million intent notice on top of the Blackjack Road bond package, but Montgomery attempted to limit the second financing package to about $5.5 million before Williams’ motion was pulled in favor of the second round of talks.
Montgomery said he wants to keep future tax hikes to a minimum as both Starkville and county residents will soon feel the effects of combined millage increases for the proposed Golden Triangle Development LINK-backed industrial park.
“I understand there’s a need, but what I’m asking supervisors to do is that if there are three that will vote for another bond, just be considerate, because a lot is hitting the books soon,” he said. “It’s just one thing after another right now.”
After the meeting, Trainer backed a suggestion made at the table by bond attorney Sam Keyes: supervisors should create a separate capital improvements line item, which utilizes dedicated millage, instead of raiding its operating budget for road projects.
“If you want to do capital improvement projects, that’s the best way to do it,” Trainer said. “Adding a couple mills here or there would keep money pledged for these big-ticket items.”
Blackjack background
Supervisors have discussed how to fund Blackjack Road infrastructure improvements — including road widening, lighting and sidewalk installations — since the last board approved a tax increment financing (TIF) district in 2014 that would have utilized new apartment complexes’ ad valorem proceeds to pay off debt. The TIF plan, which then included three separate developments, did not move forward since one of the apartment complexes failed to materialize.
Supervisors decided against pursuing the TIF for improvements Monday after Keyes said it would bring with it a higher interest rate compared to a general obligation bond. The bond for Blackjack Road improvements, he said, will have a minimum impact on Oktibbeha County’s tax rate because of the projected ad valorem returns from the Aspen Heights and Helix apartment complexes associated with the previously proposed TIF district.
Aspen Heights is already on the tax rolls, County Administrator Emily Garrard said, but the county will not begin to collect ad valorem revenue from Helix Starkville Apartments until next year. Payments on the Blackjack Road bond’s debt service aren’t expected until the next fiscal year.
Both apartment complexes are forecast to bring in about $400,000 — a little over what 1 tax mill brings into the county — and could service the 15-year, $4.5 million bond, Keyes said. Any potential shortcomings could be made up by the additional 1-mill levy supervisors approved in August for future infrastructure projects, but that tax increase is expected to take the brunt of payments expected from the second issuance.
Joint effort with MSU
The county’s attempt to shore up the area’s infrastructure is expected to work in tandem with a joint effort between supervisors and Mississippi State University. The university is pursuing grant funding that will tend to Blackjack Road fixes between Stone Boulevard and Hardy Road, while the county’s bond would improve the area between Hardy Road and Bardwell Road.
David Shaw, MSU’s vice president for research and economic development, said the university is still waiting to hear an update from the state on its grant application, which could provide about $3 million for the project.
“We did traffic counts last year to determine what needs to be done, and we’ll try to address the problems with efficient turning lanes,” he said. “We all know there’s a lot of work that’s needed for Blackjack Road.”
Carl Smith covers Starkville and Oktibbeha County for The Dispatch. Follow him on Twitter @StarkDispatch
You can help your community
Quality, in-depth journalism is essential to a healthy community. The Dispatch brings you the most complete reporting and insightful commentary in the Golden Triangle, but we need your help to continue our efforts. In the past week, our reporters have posted 36 articles to cdispatch.com. Please consider subscribing to our website for only $2.30 per week to help support local journalism and our community.