Bonding At City Hall

By Ed Reynolds

Mayor Bernard Kincaid threw a curve ball at the City Council January 29 when he notified councilors that a proposed April 9 bond referendum needed preclearance from the U.S. Justice Department. Because the Justice Department must receive the ordinance detailing categories and spending of the bond referendum no less than 60 days before the scheduled vote, the Council was forced to act on the ordinance by February 5. Councilors made little attempt to hide their irritation with the rush. Councilor Smitherman was “very disturbed” by the sudden haste to finalize bond categories and amounts to be spent in each. When pressed by Smitherman for an explanation of why he did not know about the deadline sooner, Kincaid said that previous bond referendums did not require Justice Department preclearance. The city knew that the school board election needed preclearance because it is a new issue, but was reportedly caught off-guard by the bond referendum notification. [Because the bond vote is being held as a special election, preclearance is needed.]

Both Councilors Smitherman and Abbott were concerned about the status of the remaining town hall meetings, which allow residents to provide input on bond money spending. Kincaid noted that each district will have had one town hall meeting before the council finalizes the bond’s spending categories. Abbott’s first meeting, though, was held the night before the Council had to confirm the ordinance, and she is concerned that her constituents might feel betrayed. “We’re always being rushed to do something without much time to consider what we’re doing.”

A rare Sunday meeting was called for the Council to determine where bond money should be allocated. The starting time of the meeting flip-flopped, with Council President Loder desiring a mid-afternoon meeting so he could catch up on his sleep, while Councilor Bert Miller wanted to begin early so he wouldn’t miss the Super Bowl. Miller won.

Though the potential of a Mayor-Council showdown seemed high, the Sunday session went smoothly. Mayor Kincaid agreed to include funding for education in the bond referendum, pleasing Councilor Roderick Royal, who wants money for schools until the $260 million from the Birmingham Water Works currently tied up in litigation becomes available. Royal and the majority of the Council also lobbied heavily for street and sewer improvement. Councilor Hendricks preferred that the focus be on long-term investment, stressing economic development and cultural needs. Councilor Smitherman disagreed, saying that sewer problems, which have led to flooding in her district, were her priority. The councilor suggested that improvements to streets and sewers are the type of projects that will encourage voters to get behind the referendum.

Streets, sewers, and schools were the big winners, receiving the largest boosts following the Sunday meeting. The entire $125 million bond fund is drawn incrementally to avoid paying interest. An amount that can be floated without raising taxes — $50 million — is borrowed first. The city can then borrow the balance in the future as the debt is reduced.