Oktibbeha County supervisors met to discuss how to allocate proceeds from the recent sale of the county hospital, a discussion shaped by a letter from the City of Starkville asserting the city would be entitled to 50% of county road spending if the county uses general‑fund dollars for roads, and by an Attorney General opinion read at the meeting that concluded the hospital proceeds were not ad valorem tax revenues required to be shared with municipalities.

County Administrator White Gardner told the board he had provided a packet of materials, including the City of Starkville letter and an Attorney General opinion arising from a Lafayette County hospital sale. Reading the opinion aloud, White Gardner summarized its conclusion: "No. Since those proceeds are not ad valorem tax proceeds collected by the county within those municipalities," the opinion said, indicating the Lafayette County opinion did not require sharing hospital‑sale proceeds with cities. White Gardner said he would travel to Jackson after the meeting to seek additional clarity.

The City of Starkville's letter — described at the meeting by White Gardner — asserts that if the county spends funds from its general fund for roads, the city is entitled to a share equal to 50% of that spending. White Gardner told supervisors the county's legal research and the Attorney General opinion suggested hospital‑sale proceeds may be separate from general‑fund revenue and therefore not covered by the statute Starkville cited. "We didn't know for certain," White Gardner said, noting the office was still researching statutory applicability and how prior opinions had assumed county ownership of the hospital in the cited query.

Board members and consultants outlined choices for the proceeds rather than taking formal action. Options discussed included: (1) treating the proceeds as a one‑time county funding source directed to immediate capital needs such as paving gravel roads; (2) placing proceeds in a trust or restricted fund and using only investment earnings to service bonds or fund recurring programs; and (3) using a portion now for urgent needs while endowing the remainder. Consultants at the meeting advised the county to adopt an investment policy and to model projected earnings before committing to a structure; one consultant described the typical financing timeline as a 90‑day process.

Supervisor Williams emphasized the county's immediate road needs and framed paving projects as investments in residents' quality of life and homeownership. "Once we pave [a] gravel road, we increase the quality of life for individuals who live on that road," Williams said, adding that paved roads encourage households to purchase and stay in county neighborhoods.

Officials also noted that while the county has received a large portion of the purchase price, some accounts receivable tied to the sale remain outstanding and uncertain. County staff told supervisors the bulk of cash has arrived but that receivables must be claimed and collected before the county can treat all funds as material. Consultants cautioned the board that whether proceeds should be classified as general‑fund dollars or restricted funds will shape legal obligations and any municipal sharing requirement.

No formal motions or votes were taken at the meeting. Supervisors directed staff and legal counsel to continue researching the statutory question, to obtain additional legal guidance in Jackson, and to prepare financial scenarios showing (a) immediate use for paving and county projects, (b) an endowment/investment model, and (c) hybrid approaches so the board can compare projected investment earnings and bond‑service capacity.

Melissa Riley, who introduced herself as representing the Pickering Firm, said her firm is available to advise on economic development and planning as the county considers long‑term uses of proceeds. Riley said she will follow up to schedule more detailed conversations with county leaders.

Next steps reported at the meeting: County Administrator White Gardner will pursue additional legal clarification in Jackson and staff will return with financial projections and draft investment policy options to present to the board before any final allocation decision.