By J. Todd Davis,
Mayor-City of Dillon
I will start by saying I cannot ever recall during my term as Mayor the City of Dillon having less debt on the books. The challenges remain but with lower debt for the General Fund and Water Sewer Fund will allow us the means to address these challenges going forward. We have taken advantage of the lower interest rate environment that persists throughout the economy.
The only significant debt we have on the General Fund side is the note on the Wellness Center and we are in the process of refinancing that debt as I type this. The initial loan for the Wellness Center was $3,500,000.The present interest rate is 4.05%. We have a balance of $2,092,269. The new illustrated rate is 2.4%, and I suspect the rate will be less than that since interest rates plummeted again in the last 2 weeks. This refinance will save the city $384,048 in gross savings and because we will be skipping a payment in 2015, the net savings will be $125,370 based on the new rate of 2.4% over 10 years. The Wellness Center was originally financed on a 20-year note. The Wellness Center is the only General Fund debt we have and from a debt standpoint positioned the City nicely going forward. It’s up to us to generate the ideas to carry the City forward. The resources to implement these new ideas are not limitless but we have more flexibility now than in the past.
The Water-Sewer Fund is more challenging and less predictable due to unforeseen infrastructure issues. Like most municipalities the infrastructure underground is very old and very expensive to replace. We have to repair on the cusp at times and maintain general maintenance when we can. There is a reason smaller municipalities are getting out of the Water and Sewer business, especially the Sewer side. In June 1996 the City of Dillon and Perdue financed the spray field off Sugar Hill Rd. The cost of the project was $12,790,000 and the interest rate on this SRF loan was 4%. The City is responsible for 40% of this project, and Perdue the remaining 60%. The loan was refinanced in 2011 and the new interest rate is 2.25%. Our Quarterly payment is currently $87,843. We will retire this debt in March of 2016. When you can close out an $87,843 quarterly payment it will free up our bonding capacity considerably!
I don’t think the future of Dillon has ever looked better. I remembered the day Dixiana Mill closed. It was a dark day in Dillon, and many rightly saw uncertainty on the horizon. Well now Wyman-Gordon is gearing up, and I see excitement on the horizon. I truly believe HOPE is the greatest of things. Along with our existing industries, businesses and Wyman-Gordon opportunities are on the horizon. I hope anybody looking for a better opportunity will read the front page of the January 20th edition of The Dillon Herald. State funded training will begin. Northeastern Technical College will begin offering SCMC training to anyone who qualifies. The opportunities are coming, but it’s up to the people here in Dillon to get ready and grasp the opportunities at hand. Dillon and Dillon County have to market themselves for industry. You the individual also need to market yourself for the opportunity ahead!
The City will continue to focus on our quality of life for the people. Look for new ideas out at the Dillon Municipal Golf Course. I asked for a committee to lead in the area of ideas to make the golf course a better experience and how to make it more viable financially. The Wellness Center continues to be the focal point of our community so you need to be in touch with what’s going on out there. Our recreation department is vital to our and any community. Just last night I was at the Wellness Center and noticed we have more basketball teams playing in our recreational department than ever before. We are also adding new sports when needed like girls volleyball.
In closing, I want to think our Police force for all they do in keeping order in our City. I cannot ever recall having a younger force than we do now. Not only is the department young but they are highly qualified and physically fit! There has been much focus on police departments throughout the country. I think we have a department that is in touch with their community and that makes all the difference in regards to communications with our citizens. Lastly, I want to thank the City of Dillon Fire Department and especially to all our volunteers on the Fire Department. Have you ever witnessed a fire department that responds to calls quicker than the City of Dillon? We are blessed to have a first class fire department staffed with mostly volunteers. I did not know this but many are not volunteer fire departments. Just recently I read where the City of Hartsville has a full-time fire department only. I’m sure we would manage, but a full time fire department would certainly strain our general fund budget.
I look forward to 2016 and what the New Year brings. There will be challenges like every year but this year should be stacked with opportunities, and I anxiously wait to see them here in Dillon.
