TARPON SPRINGS, Fla. — A nearly $20 million loan to the city of Tarpon Springs is stirring debate over how the money will be used and whether city leaders are being transparent.
With his bike shop in the middle of downtown, Eddie Mullally said he usually has a good sense of what is going on in his city.
Watch full report from Erik Waxler
“It’s a little tense right now,” said Mullally, owner of Neptune Cyclery.
Mullally said the debate centers on a $19.3 million capital improvement loan that has left him and others with questions about what the money will fund.
“That’s what happens. I don’t think people are informed. If you don’t pay direct attention things can get by and you’ll look up and see ‘where did that come from,’” Mullally said.
City Commissioner Peter Koulias is the lone commissioner pushing back on the purpose of the loan.
“In retrospect, we have pushed this without a true plan, without the voters being aware of what’s going on. And this is the biggest financial loan that this city has taken on since 2006,” said Koulias, who has also served as mayor.
Current Mayor John Koulianos said there have been public budget meetings and information posted on the city’s website explaining the loan.
“These aren’t choices. These are necessities,” Koulianos said.
According to the mayor, the loan covers five capital improvement projects, including a new fire station, seawall construction at Craig Park, and stormwater projects. He said the loan also frees up money for streets and other infrastructure.
Koulianos added the city needs the loan to avoid draining its reserves. He noted hurricane cleanup cost Tarpon Springs $10 million, and the city has only received $2.5 million back from FEMA.
“If a storm were to come this year, god forbid, if we use all of our operating funds to fund these capital projects, we’ll have no money,” Koulianos said.
After questions were raised, the city posted infographics on social media breaking down the loan.
But Koulias said voters should have a direct say on whether the city borrows the money.
Mullally agreed.
“If its a good loan we’ll take it. We definitely need things done here,” Mullally said.
The mayor disagreed, saying the city charter does not require a referendum and it is time to move forward.
“We can’t keep kicking the can. The can has been kicked too many times,” Koulianos said.
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