Danielsville’s city council held a special called meeting Nov. 24 to establish a $200,000 line of credit with First Madison Bank.
The measure is just another part of their continuing efforts to work through the myriad of financial troubles left behind by former long-time clerk Michelle Dills, who is accused of stealing thousands of dollars from city coffers. The council agreed that any funds used from the line of credit would need to be approved by a council vote and that any future insurance funds received from the city’s bonding company will be applied immediately to any balance on the line of credit.
The city hopes to recoup the stolen funds since Dills was a bonded employee.
Mayor Glenn Cross told the council that the estimated amount of stolen money has risen significantly, but that he did not want to state an amount due to the continuing GBI investigation. He also said he believes they have discovered a “pattern” to the thefts dating back to 2003.
They are awaiting further investigation into cash deposits and have also subpoenaed a number of missing cancelled checks and bank statements.
Cross said the GBI investigation could be completed by January and that once complete, their findings will be turned over to the bonding company for reimbursement of the missing funds.
In the meantime, the bills continue to stack up, including invoices for organizing and entering data for the investigation, as well as overtime for city employees poring over financial information from previous years, while also trying to get an idea of budget figures for 2009.
In addition to opening the line of credit, the council discussed cashing in some certificates of deposits kept for contingency funds.
“I just hate to get everything out of the bank in case of some unforeseen emergency,” Mayor Cross said, adding that it may be necessary to have another called meeting before Christmas to discuss finances further.
In related matters, the council agreed to “set aside” two invoices from engineers People’s and Quigley until they provide an itemized invoice and explain the charges to the council. Mayor Glenn Cross said he had invited Chris Quigley to the work session, but that Quigley had cancelled just prior to the meeting, saying he was stuck in traffic and couldn’t make it.
The council also discussed an $8,551 water bill from the county’s industrial authority for one week’s worth of water used by the city during a recent water tank cleaning.
The council was surprised by the bill, saying they have “exchanged water” with the IDA in the past during tank cleanings. The council instructed city employee Jerry Riley to ask if the city can pay $100 per month until their financial situation improves.
The council is also awaiting more detailed invoices and completed work from city auditor Vance and Associates, who sent them a $3,700 invoice, and from Bowers and Associates, who sent a $3,500 bill for data entry services to bring the city’s bookkeeping up to date for the investigation and for audits. City clerk Connie Riley said she has not received any data entry material from Bowers.
