State Wasting Money on Well?

File Photo

Jackson Mayor Harvey Johnson Jr. has been communicating with Gov. Haley Barbour since the State Bond Commission failed to take up a $6 million interest-free bond on water repairs.

by Adam Lynch
August 30, 2010

Mississippi Department of Transportation's decision to drill a $390,000 well in downtown Jackson to supply water for government buildings is a "duplication of services," city of Jackson spokesman Chris Mims said today.

"The city of Jackson would replace the water system around the Capitol if the (State) Bond Commission would approve the $6 million approved by legislators during the last session," Mims said.

MDOT decided to finance drilling for the well after a series of winter freezes in January and a June water main break pushed the city's aging water pipes beyond their capabilities. Pipes suffered more than 100 breaks in January due to hard freezes, and the rupture in a massive 54-inch water main in June cut water to major sectors of the city, and reduced water pressure in others. The proposed emergency well will supply water to MDOT, the Woolfolk Building, the Capitol, The Sillers Building and the Carroll Gartin Justice Building in the event of another water crisis.

Department of Transportation Public Information Officer Kenny Foote said MDOT considered drilling the well after the June difficulties. The department began work on the well in July, the same month the state bond commission did not take up a $6 million bond passed by lawmakers for the city of Jackson to replace 100-year-old water pipes that serve state buildings and infrastructure.

The bond commission consists of three statewide office-holders: State Treasurer Tate Reeves, Gov. Haley Barbour and Attorney General Jim Hood. Hood told the Jackson Free Press in July that he would have approved the bond, but that the $6 million item was not on the commission's agenda.

Reeves told the Jackson Free Press that he could not support the bond without more information from the city about what it intended to do with the rest of its aging water lines, whether the city had exhausted federal grants and funding for the water work, as well as other details about the repairs.

Rep. Cecil Brown, D-Jackson, said House Bill 1701, which made the bond possible, demands the city report schematics and project details to the Mississippi Development Authority, not the treasurer's office.

"The bill is very specific about the steps that MDA must go through, and is also very clear that MDA is the authority, not Tate Reeves, not the Bond Commission. So Tate Reeves speaking on behalf saying he wasn't given the information--there's nothing in this bill that gives him the authority to even ask for the information," Brown said earlier this month.

Barbour, meanwhile, submitted an Aug. 16 letter to the city urging it to take advantage of State Revolving Fund loan programs as a substitute for the $6 million bond, but Johnson responded Aug. 17 pointing out that the city had already acquired $155 million in debt to fund water repairs, and that the $6 million bond has the appeal of being interest-free.

"As we seek funding to pay for the more than $200 million needed for future water and sewer repairs, we will certainly utilize various sources, including the SRF and the option made available through HB 1715," Johnson wrote. "However, this does not negate the city's responsibility to pursue all available options, including the $6 million no-interest loan that was part of the bond bill passed by the Legislature and that you signed into law."

Department of Finance and Administration spokeswoman Kym Wiggins said the State Bond Commission has scheduled a Sept. 10 meeting, but said the agenda is not set. She could not verify if it included the $6 million item.

Mims said Johnson has spoken with Barbour recently and said he is optimistic about the conversation. Mims added that it is too early to say if the city should be looking for another source for the $6 million.

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