Rusk City Council finalizes $500,000 loan to TSRA
BY GLORIA JENNINGS

Members of the Rusk City Council adopted an ordinance Thursday to authorize a loan of $500,000 to the Texas State Railroad Authority. The funds will be used for operation of the railroad.

The City of Palestine allocated the loan of another $500,000 to the rail authority. This $1 million will be added to $2 million obtained from the state. The council also approved an addendum to the purchase and sale agreement between the city and American Heritage Railways of Texas Inc. The $500,000 to be loaned by the city to the rail authority will come from funds from the Economic Development Corporation being transferred to the City of Rusk. Charles Hassell, chairman of the Rusk Economic Development Corporation board, said "It is our intent to transfer the money to the city immediately. Then the city can make the loan to the railroad authority."

The council's decision was made after a detailed explanation was given by City Attorney Larry Sinclair.

The cities' and railroad authority's obligations will be completed when the cities transfer their $500,000 each to the rail authority and the state funds are deposited.

The Texas State Railroad Authority received a check for $2 million from the state comptroller Dec. 6.

Attending the city council meeting to represent the railroad authority were board members, Mr. Hassell, Bob Goldsberry and Marie Whitehead and attorney Ron Stutes.

In another matter, the council heard from Rusk Fire Chief Wayne Morgan, who said he is retiring as chief at the end of his term. His replacement will be named at the firemen's banquet Jan. 15, 2008.

"The fire department has recently paid its final installment on the purchase of a $75,000 ladder truck. It is through your help and the help of our citizens who regularly contribute to our department that we were able to repay this loan seven years early," Mr. Morgan said.

"Many area citizens make annual donations to our department and for this we are grateful," Mr. Morgan continued.

In another matter, a public hearing was held concerning the possible passage of an ordinance regarding House Bill 621 which adds to the tax code regarding goods in transit. The matter is scheduled to be considered at the Dec. 13 council meeting.

Lee Flowers, chief appraiser at the Cherokee County Appraisal District, told Mike Murray, city manager, that he thought passage of this ordinance would be a good idea. If the city passes the ordinance it can discontinue the action anytime it chooses. But if the ordinance is not adopted then the council will not be able to adopt it at a later time.

Attending the meeting were Mayor Angela Raiborn; Councilmembers Kris Morgan, Walter Session, Don Jones, Donald Woodard and Sam Florian; City Manager Murray; City Secretary Fran Wendeborn; and City Attorney Sinclair.