Oxford board hears $15 million winter-storm tab; mayor says city borrowed $10 million

Rhonda, who delivered the March budget report, told the board that total expenses tied to the January winter storm are about $15,000,000 and that the city has submitted approximately $8,400,000 in projects to FEMA for reimbursement. She said the city has received roughly $5,000,000 from FEMA so far.

"Per your packet, our core operating revenues are tracking appropriately for this point in the fiscal year," Rhonda said, noting sales-tax collections were up about 10% year over year. On storm costs she said, "Total expenses to date and with estimated expenses what we think that we'll have to pay out over the balance of May: right now total winter storm expenses total right at $15,000,000. Total reimbursement projects that have been submitted to FEMA for reimbursement as of this time are $8,400,000. That leaves us a balance of about $6.7 million to submit to FEMA for reimbursement." (Numbers quoted as presented to the board.)

The mayor told the board the city drew $10,000,000 from an emergency private loan with Trustmark Bank to pay contractors while recovery work continued. "We borrowed $10,000,000 so that we could pay our contractors on time because they were working 7 days a week, 10 hour days," the mayor said, describing the draw as a cash-flow step to keep work moving.

Rhonda said the city applied to the state emergency funds loan program and submitted two projects to that program; staff expects about $1,300,000 in additional state funds in the near term. She also said that of the amounts submitted to FEMA, the federal program has returned roughly 75% of what was filed and that the remaining share will include portions attributable to the state and the city under cost-sharing rules.

Board members asked about interest and repayment: the mayor said the state loan program had been described as zero-interest for municipalities but that program funding was prorated by the legislature, leaving local officials with a choice about how to apply limited state assistance to internal loans and utility funds. "We took a $10,000,000 draw off of our emergency loan ... to help offset some of these expenses, so we can operate," the mayor said. She added that the city's consultant is working to document in-kind volunteer hours and donations for FEMA submission.

The board had no formal action on the loan at the meeting; the discussion was provided as an informational budget update and to inform future decisions about loan repayment and use of any state awards.

The board proceeded to routine consent and contract items after the budget presentation.