POPLAR BLUFF, Mo. -- In the two months since Poplar Bluff's new city manager took office, the city has committed to new spending and debt equal to more than a quarter of one year's budget.

A nearly $5 million loan will fund technology and equipment upgrades, while at least $100,000 in new salary costs have been added to pay for a grant writer, grant writer's assistant and personal assistant for the city manager. Several hundred thousand dollars in new road projects are planned to pave gravel streets.

In his first week in office, city manager Heath Kaplan also held a mandatory, after hours meeting to introduce himself to about 300 city employees. The two-hour meeting is estimated to have cost $16,000 in wages, including overtime hours, according to city sources who spoke on the condition of anonymity.

When the Daily American Republic requested specific figures, city officials said they could not provide the information until an official Sunshine Law request was made.

This comes as city offices prepare to move in to rented space that could cost as much as $36,000 annually, until a new city hall can be constructed. Former city leaders estimate the price tag on that project could top $8 million.

On the heels of a survey in which the business community expressed concern over city spending, two former city managers, the current chamber of commerce president and the Daily American Republic publisher met to voice the questions they continue to hear from community members.

"I don't feel [the city council was] properly ... informed about all of the purposes of this, the cost to the city and the cost to the reserves," said former city manager Tom Lawson, who held the position for 12 years before ousted city manager Doug Bagby.

The biggest concern from the survey and the community has been the speed at which the spending has taken place, said Greater Poplar Bluff Area Chamber of Commerce president Steve Halter. Halter participated in the discussion with the agreement of his board of directors' chairman.

"The people that have talked to me ask, 'Why aren't we taking more time assessing the situations before making decisions?'"

The spending is occurring at a rate that is not sustainable, said Bagby, who served as city manager for almost 11 years until his ouster in May.

"I don't disagree with the things they are doing. I just think they cannot afford to do these things," Bagby said.

Lawson questioned the need to go into debt, rather than creating a plan to prioritize and accomplish goals over time.

City council members gave Kaplan the power to negotiate a loan for up to $5 million, the payment terms of which have yet to be released. A bid from Southern Bank for 10 years at 2.46 percent interest has been accepted.

Nearly $2.4 million will pay for automated meters for the electric and water departments, while a little more than $2 million will improve city information technology and fiber cable.

"I'm not questioning the fact that they probably need to pave some gravel streets. I'm not questioning the fact that the city police department needs some of the technology that's included," Lawson said. "But I would have thought some of that could have been taken care of, at least a move in the right direction, without borrowing anything."

Pertinent address:

Poplar Bluff, Mo.