New Madrid adjusts budget as a result of ice storm expenses

NEW MADRID, Mo. -- January's ice storm not only took a toll on New Madrid itself but also its budget.

In a special council meeting Thursday evening, the New Madrid board of aldermen revised the 2009 general fund budget by $500,000 and the Municipal Light and Power's budget by $1 million to reflect costs incurred as a result of the January storm which devastated much of Southeast Missouri.

To fund those costs, the board also approved the mayor entering a contract for a $1.5 million two-year promissory note with Regions Bank to "secure funds necessary to restore electricity and cleanup expenses."

City administrator John Gilbert said that while FEMA will reimburse the city for 100 percent of the electrical work incurred as a result of the storm and 75 percent of the cleanup, the money won't be immediately available.

"We are dealing with economic hard times and creditors want to be paid," Gilbert said. He added that according to FEMA, reimbursements are made only on paid bills.

Topping the city's expenses are to the electrical contractor, PLC, which assisted the city in getting back on line. According to Gilbert there were 105 broken utility poles and 26 transformers that were replaced due to storm damage.

PLC's bill alone was $700,000, he said.

He estimated debris cleanup in New Madrid would cost between $300,000 and $400,000.

"We still have crews cleaning up every day and we still have bills coming in," Gilbert said. He said he expects the cleanup completed by the end of the month.

Overtime was also incurred by city employees who remained on the job for 14 days straight following the storm, he said.

"This is the largest devastation we have had in this community in a long time," Gilbert said. "And if it hadn't been for the utility upgrade and the tree trimming done over the last year and half we could still be without power."

The city administrator praised not only for the hard work of city employees but also the many businesses and volunteers who assisted following the storm.

"Considering the devastation we were all in, the cooperation we got was astronomical. I'm proud of the way the city worked together," Gilbert said.