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Danielsville gives up funds from water/sewer loan

Posted by

Zach Mitcham

in Top Stories

Friday, April 22. 2011

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The city of Danielsville has funds left from a five-year-old water and sewer loan, but the city council will let the bank keep the rest of the money.

Danielsville leaders took the unusual step April 11, agreeing to give up the remaining $142,000 from a 2006 loan from BB&T.

The action followed a recommendation by city attorney Dale Perry, who advised the group that roughly $340,000 of the $610,000 loan acquired by the former council had not been used for its intended purpose in previous years.

The loan qualified as “tax exempt,” according to the Department of Community Affairs, provided that the loan was used for water and sewer upgrades in the city.

But Perry said at least $340,000 hadn’t been used for that purpose within three years, as the loan documents stated.

“I do not know what the funds obtained in the loan were actually used for,” said Perry.

The fact that the money had not been used for its intended purposes means that the loan’s “tax exempt” status could be called into question, raising the possibility of the city having to pay back taxes. Perry said that by returning the remaining portion of the loan, the city council was making a “good faith” gesture, showing that they were trying to correct a past wrong.

Perry said $110,000 of the $610,000 loan was used to pay off a 1982 loan for previous city water system improvements. Another $15,000 was for bond and closing fees. The remaining money was to be used within three years for water and sewer projects, including roughly $85,000 in the first year for the “first well,” $42,500 in the second year for the “second well,” and $375,000 in the third year for the sewer lines.

In other matters April 11, the council agreed to have Perry contact county school superintendent Allen McCannon to dicuss a sewer service contract between the city and the schools, which is up for renewal in 2013. The city’s sewage pond is actually property of the school system. And the city provides sewer services to the schools in Danielsville in exchange for use of that pond. But city leaders say that serving the school system is a very costly and the council is seeking more of a contribution from the school system for that service.

Also April 11, the council agreed to have Gary Venable install a computer network upgrade for $1,685 at city hall. The group also approved a camera system at just under $7,000. The new camera security system will allow the city to maintain better surveillance at city hall.

The council agreed to sell a surplus truck for $875.

The group also agreed to meet with city employees at its April 25 work session to discuss a proposed city spending policy, which will lay out how purchases should be handled by the city and when bids and full council approval are necessary. That new policy will take effect May 10.

The board tabled a decision on purchasing software to organize records for the city cemetery.

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#1 Anonymous on 04/22/11 at 11:49 AM

7,000 for a security system for city hall seems very high for such a small building who is the buddy getting this job. I would think 4,000 would be what it should cost.

#1.1 Janie Massey on 04/28/11 at 12:36 PM

You don't have the nerve to give your name, so why would anyone take what 'you think' seriously? And I presume you have experience in bidding for security camera installations, right?
Lastly, your asking who 'the buddy' is that's getting the job: Just sour grapes speaking man! If you want to be taken seriously, give your name and reasons for your posts. Just saying......

Be Blessed! Stay Blessed!
Peace, Love and Light ;-)

#1.1.1 Redneck on 04/29/11 at 09:56 AM

Yep lets give our names. Get bullied or maybe wife at Ingle's get bullied and all. Get threats. Hummm get expensive blood sucking lawyer to defend you or to stop bully. Yep next thing you will want your name next to how you vote.

I suspect you mean well but Anon if same person that posts elsewhere view take that person seriously. So chill Janie. Or better Janie get on the conservation band wagon to see if there is an issue of people not paying their fair share of taxes.

#1.1.1.1 Janie Massey on 04/30/11 at 12:31 PM

Bullied? It sounds,Redneck,like I'm not the one who needs to chill :)

Be Blessed! Stay Blessed!
Peace, Love and Light ;-)

#2 Anonymous on 04/24/11 at 05:53 PM

Well you should go to the meetings and try to help them save money.

#3 Anonymous on 04/24/11 at 05:56 PM

Is your last name Watson?

#3.1 Darren Ruark on 04/25/11 at 06:23 PM

We would be a lot better off as a city if the Watson's were back on the city council.

#4 Ron faust on 04/24/11 at 09:28 PM

Well,As is often the case,we had no outside assistance in making that decision.I really wish you had come to the meetings and helped out.All of us encourage the citizens to come to the meetings and give us some input.But i must say,how do you make an estimated guess as to cost?Do you know what we got for the money?Then again,maybe you were there.

#4.1 David Smith on 04/25/11 at 06:19 PM

As usual Mr. Faust's comments make no sense. The council is elected to make decisions no matter how stupid they usually are. They don't listen to citizens anyway. They try to make decisions behind closed doors or over the telephone with each other.

#4.1.1 Ron Faust on 04/27/11 at 02:26 PM

Well Mr. Smith,(that name rings a bell...)I could try to dumb it down for you but I think it would just insult the competent readers(that will be the extent of my cheap shots :) )But seriously, What would you like me to do. I assume that if you are willing to post that you are dissatisfied with my actions, you at least have an idea as to what you would suggest. As to your statement about not listening to citizens, Did you actually READ my post? I am asking for citizen input just as I have from the begining.However,i will not chase you down to get it. I am available any time you want to talk. To date have had very little citizen input to listen to. And behind closed doors? If you bothered to attend meetings you would see us struggle to make those decisions. This council went from 45(avg) min meetings to 4-5 hour meetings regularly.Why?Because it takes time to weigh all the options and info. If we made those decisions by phone, we would be eating dinner by 8:00 every time. And AS USUAL? What former comments are you using to base that statement? I have no problem being called out for anything I do but if you do, you need to have some kind of basis for commenting in such a manner. If you do, I am all ears.Otherwise,if you can't make your criticism constructive,you are just making yourself look bad in a public format. I hope you will consider my response and offer me some realistic feedback.

#4.1.1.1 rb on 05/31/11 at 06:16 PM

No you all DO NOT listen to us "little people" and I have been to the meetings several times. $7000.00 for a camera system? That's ridiculos...go to Sams Club great camera set up out there about $1000.00 to me thats just as obsurd as paying what about $700 of our tax dollars for the chicken mull the fire dept had? Pagers for the fire dept, whats that about $3,000 you all are talking about debating on...OUR TAX DOLLARS and phillip wants to say about the one that was fired (scott) was wasting OUR TAX MONEY? You all just hired the Josh who has not been seen out working because he is studying on city time to obtain his license...the same license scott was fired for? Hmmm i wonder how that got out? No flags were put up in our city to support our veterans and troops...Lift station down since last week and to my knowledge still not properly working...is the city going down hill? Sounds like to me you all need that Scott fellow back

#4.1.1.1.1 Josh Lester on 06/01/11 at 08:56 PM

Anytime you want to know where im at come to City Hall and ask im sure they can tell you where I am. As for me working on my license on city time you should really get your facts straight before you say something you know nothing about. I have both of my license in water and wastewater both are class 3. All you have to do is look on the state board website. I am very thankful to be back at the City of Dville. I hate what happened to Scott as I was looking forward to working with him.

#4.1.1.1.1.1 ohwell on 06/02/11 at 03:40 PM

Josh Lester-People know you have (or had) your license...but when license expire that means you have no license, you have to get re-certified. Danielsville is a small town and once one person talks they ALL talk. Word spreads fast and this sure does not look good for our mayor! I hate that we of our city lost Scott he was a hard worker and was very apperciative to us citizens and to his job and it showed, but things happen and the way all of this was done was very inappropriate. I am a well known tax payer to this city and I remember you working on and off for our city and I'm sure alot of us do not need to go to the city hall to ask where you are, we know just where to find you. Im with everybody else who has talked about all of this which was nothing but a buddy hire and a huge conflict of interest. I do not care what anyone says different if you put everybody together who is involved that works for the city, people who has sub contracted work from the city and friends of city employees that had done work and some still do to this day...it only makes ONE BIG CIRCLE! THAT'S A FACT! Goodluck to you.

#4.1.1.2 sawdust on 06/01/11 at 03:18 PM

Well at 150.00 per hour to listen to Junne say the same things over andover.It is not a bargain for four hour meetings.As far as the Watsons they treated the maintainance people well.they did their jobs. and were very polite.

#4.1.1.3 sawdust on 06/01/11 at 04:43 PM

150.00 per hr. attorney fee.4-5 hrs.$7000.00.for a momitoring system that will be monitored at the fire dept.Hiring new help .Can't get the water meters read in the usual time. trouble figuring out how much to bill.Double taxes.Garbage rates up.Y'all really doing a good Job.Guess next thing will be turning over water to the IDA.

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