OXFORD – Local governments that secure American Recovery and Reinvestment Act grants or bonding assistance will find the Mississippi Development Authority being their new best friend.

“These funds come with some unprecedented strings attached,” said Manning McPhillips, MDA stimulus director. “If you get a grant from us, we’ll be in your life for the next several years. While it’s a great opportunity for a lot of things, it’s not free money.”

McPhillips and Kathy Gelston, director of MDA’s financial resources division, spoke to a city, county and nonprofit officials from North Mississippi and the Delta on Monday at the Oxford Conference Center.

The workshop was part of a series giving officials an overview of the federal stimulus package.

Some of the funding comes in the form of bonds, both taxable and non-taxable. “Build America” bonds can be used for capital expenditure projects, governmental working capital, current refunding of existing tax-exempt debt or one advance refunding.

Recovery Zone bonds are limited to areas with particular economic challenges and can be used for economic development or facilities.

Several funding programs focus on energy efficiency and green jobs.

“We’re trying to interpret the ‘green economy’ where Mississippi’s economy is already heading – the Toyota Prius plant and some of the aerospace industries around Columbus that are (increasing aircraft efficiencies with) lighter materials,” McPhillips said.

Housing and community services programs include one to relocate homeless persons, others to stabilize neighborhoods with high rates of foreclosure and abandonment and another for public infrastructure improvements.

Other funding possibilities are expanding broadband Internet availability and increasing work force development.

MDA representatives emphasized that counties and other entities that cannot meet deadlines for their stimulus funds should turn them back in to MDA for redistribution to other cities and counties.

“If you don’t have that bird in the hand,” Gelston said, “I would ask you to consider allowing these … bonds to come back to the state.”

Contact Errol Castens at (662) 281-1069 or errol.castens@djournal.com.