Danielsville’s city council agreed last week to pay off the city’s $200,000 line of credit with Madison First Bank and Trust.
The money will be repaid from the $248,103 insurance payment received last month to cover funds allegedly stolen by former city clerk Michelle Dills.
The council agreed to leave a $1 balance in the line of credit, at the suggestion of First Madison VP David Hancock, who told them the line could be left open at no cost to the city unless they borrow from it again.
“(That way) if you need it, we’ve got it and you won’t have to go through the process again,” Hancock said.
Hancock said the line of credit could be renewed, if the council chooses, at the end of the year.
In a separate matter, the council postponed a hearing on a conditional use permit for auto sales at the corner of Hwy. 98 and Hwy. 29 due to advertising criteria.
City attorney Victor Johnson told the council that the public hearing had not met the 15-to-45 day deadline for advertisement in the newspaper. The council agreed to hold a special called meeting on June 29 at 6 p.m. during its regular work session.
City maintenance worker Jerry Riley told the council that he estimates a new sewer lift station for Madison Street may cost as much as $100,000, plus engineering fees. Mayor Glenn Cross asked city clerk Connie Riley to call School Superintendent Mitch McGhee to set up a meeting later this month, or in July, to discuss the sewer sedimentation pond, which is located on school property. The council wants to begin discussions with the school system before their contract ends in 2013 and before they look further into constructing the new lift station and/or expanding the city’s sewer system.
The council also agreed to talk about contracting with county industrial authority engineer Phil Munro at its July 6 meeting.
The council also discussed, but took no action on, the need to raise water rates over the next few years. Mayor Cross told the council that Danielsville has “some of the lowest water rates around,” compared to 18 other local cities and counties. He said the city must raise their rates in order to be able to obtain financing for future water/sewer projects.
The council also discussed developing an event ordinance to regulate events in Madison County Memorial Park, which though located in the city, is on county-owned land. Temple told the council that she did not see why the city should be encumbered with the expense of developing an ordinance and enforcing it, since the park grounds are county property. No action was taken on the matter.
Also last week, the council approved a beer and wine license for Royal Food Store.
