The Covington branch of the Newton County Library System found itself in need after its 17-year-old HVAC system shut down.
A Band-Aid solution was made to a system that really needed a transplant.
However the HVAC’s failure brought to light more than a need for a new heating and cooling system.
What we learned was the problem with the system had been diagnosed in 2013, the state offered matching funds in 2014, and the problem still wasn’t fixed when the situation became desperate in May.
Suddenly, the library found itself with an emergency on its hands as a broken pump forced the Covington branch to close from August 14 through 27. Without the new system, the main branch of the library might have closed for good.
The funds were found—but it was an uncomfortable way to get the roughly $1 million needed to keep the library open.
If 2008 and the recession taught us anything it was that financial security is not always possible. It’s best to have something put aside for a rainy day.
Well, it’s pouring in Newton County now.
Between the library giving county employees long-needed raises, defending the landfill against lawsuits and making federal- and state-mandated improvements there, and the seemingly quixotic quest for another reservoir costing a small fortune, Newton County is standing out in the rain without an umbrella.
Tuesday, a public hearing was held, and a motion was approved to refinance the bonds on the Administration Building in order to get the funds needed for the library’s new HVAC System.
The interest rate related to the Administrative Building was lowered from 4.25 percent to 2.05 percent enabling the building certificates of participation to be paid off and generate $750,000 in proceeds. That money will go to the library.
As County Attorney Tommy Craig said Tuesday, the county is essentially refinancing a house in order to get a little more money in the bank. It’s something residents, businesses and governments all do when an influx of cash is needed.
But we feel this puts even more spotlight on the county’s finances.
A rainy-day fund was needed instead of watching the county scramble to keep the library doors opened. While the terms of the loan are favorable, and will actually save the county in the long run, we still question why there are no contingency funds in the first place.
We need more money in reserves, but in order to do that, the day-to-day financial operation of the county needs to be fixed. Recently a purchasing policy committee was formed and is set to present its recommendations to the county. However, the BOC has yet to listen to the committee it formed.
Citizens have spoken out about excessive spending, mostly on legal fees. The landfill is bleeding money in support of convenience centers that don’t seem very convenient the county’s bank accounts. More money is being thrown at a reservoir both the Newton County Water and Sewer Authority and the Army Corps of Engineers currently find unnecessary.
We urge that the library’s emergency makes everyone do a double take about our county’s financial situation. When we are facing a financial setbacks and have to refinance an asset in order to get through the emergency, it is a wake-up call.
We hope the county is listening.
