CULLMAN, Ala. – The Cullman City Council on Monday evening approved an ordinance to accept a $7,110,000 loan from the State Revolving Fund via the Alabama Department of Environmental Management (ADEM) and the Alabama Water Pollution Control Authority for improvements to the city’s sewer system. According to the ordinance, “The award of the loan to the City will be of substantial economic benefit to the City and the public by reducing the amount of interest that would be payable by the City if the funds were provided from sources other than from the Authority Loan.”
In order to obtain the loan and cover costs associated with obtaining the loan, the ordinance authorized the issuance of a General Obligation Warrant guaranteeing that the City will repay the loan from its tax revenues over the next 20 years at an annual percentage rate of 2.2%.
According to City Clerk Wes Moore, the loan will fund a multi-phase project to replace sewer lines across a substantial portion of the city, delineated on a map provided to media. Mayor Woody Jacobs said that the project is a proactive move; the current sewer system is safe, though it does become overwhelmed at certain points during heavy rain events. The plan is to upgrade the system before a major problem occurs.
The ordinance passed on its first reading, when the council voted to suspend its regular rules of procedure.
Tax abatement to HomTex for facility expansion
The council also approved a 10-year tax abatement to HomTex, expected to total $286,650 over the 10-year period. The company is planning a capital investment of $5 million in an expansion that will add approximately 100 new jobs and enable the company to begin producing disposable filter masks in addition to the reusable masks it recently began producing. The amount abated does not include an expected 10-year total of $298,000 that HomTex will continue to pay.
The council previously approved a $1.5 million loan to HomTex for the purchase of mask production equipment. The expansion is expected to allow the manufacture of 400 million disposable masks per year and generate $8 million in annual sales.
The council also passed resolutions:
- to rezone 25.8 acres located in the Windbrook Subdivision from R-1 (low density) Residential District to R-2 (medium density) Residential District.
- to move the next council meeting from May 4 to May 18, 2020. The other May council meeting will take place on May 11.
- to authorize City Attorney Roy Williams to collect delinquent accounts and fines.
The Cullman City Council meets next at 7 p.m. Monday, May 11, 2020 in the Cullman City Hall auditorium. Public access may be limited in accordance with state social distancing requirements, but The Tribune will livestream the meeting on its Facebook page.
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