Eutaw City Council acts on financial and budgetary matters before start of new fiscal year on October 1

In its regular meeting on Tuesday, September 28, 2021, the Eutaw City Council dealt with financial and budgetary matters prior to the beginning of a new fiscal year, later this week on October 1, 2021.

The Council approved recommendations from the Mayor for raises for city personnel other than the Police Department, which had received raises in a prior meeting.

“When we raised the police salaries, you asked me to evaluate the rest of the staff, street, water and other workers, I have now done this and recommended raises in the range of 50 cents to a dollar an hour for the staff. I also consulted Mr. Liverman, our financial consultant, who agreed that funds were available to cover the cost of these raises which will begin with the first pay period in the new year,” said Mayor Latasha Johnson.

Financial advisor, Ralph Liverman, presented the council members with a new draft budget for the coming year, which he said he was still revising.
Liverman said, “We have increased revenues for the coming year, based on
higher sales and gas tax payments made by Love’s Travel Center, which has really helped us. We are also receiving about $50,000 a month in receipts from electronic bingo. We also increased revenues in the Water Department due to better management and collections. I expect we will have $5 million in revenues to work with in the coming fiscal year.”

Liverman explained that the City had set up the proper accounts in Citizens Trust Bank for the water improvement project loan from USDA Rural Development. We are now making required monthly deposits in our loan payment account and two reserve accounts for maintenance and repairs on the system. The City has also established a Water Tank Maintenance Account, to have funds available for tank repairs and have ended a contract with a company for tank maintenance.

Liverman also said he had sent a copy of the proposed budget to BBI, the software company which is setting up the city’s new financial system, which will be used to prepare financial statements and reports comparing expenditures to the budget in the coming year.

The City Council approved a contract with STATERA Consulting, a Human Resource (HR) firm, for $3,500, to review and revise the City’s Personnel Policy Handbook, which requires updating and clarifications. The representative of the company, on a video connection said that he would “make realistic and practical recommendations for changes and improvements to the policies and compliance.”

City Attorney Zane Willingham presented the City Council with a memorandum on legal steps they will need to take to deal with overgrown properties and charge the costs to the owners. Willingham suggested that council members prepare a list of problem properties in their districts so that
they could be acted upon together.

The Council received a request from Mercy and Grace to purchase 4.5 acres of land on Boligee Street, where the swimming pool was previously located, to build an Assisted Living facility for the elderly. Attorney Willingham advised that the Council would need to approve a resolution that the land was not needed for public use before it could be sold. The Council tabled the sale until the resolution could be prepared for the next meeting.

In other actions, the Eutaw City Council:

• Opened bids for the sale of surplus property, including trucks, cars, a van and equipment. The Council accepted some of the bids and rejected others. A full report is on the City’s website.

• Approved purchasing identification badges for all city employees, including council members.

• Approved observing October 11, 2021 as Branch & Gilmore Local Holiday, in place of Columbus Day for all city employees.

• Approved request from Girl Scout Troop 408, Greene County Human Rights Commission and Greene County Health Advisers to use City Park on October 6, 2021 for their annual run/walk to promote cancer awareness.

• Approved request from Greene County PARA for use of the City Park on November 6, 2021 for a Commu8nity-wide Fall Festival.

• Approved resolution to declare certain water fund accounts as bad debts and uncollectible, to clear records for the new fiscal year.

• Approved payment of monthly bills.

• Announced National Night Out, for police community relations, will be held October 21, 2021 at the R. H. Young Community Center.

Eutaw City Council approves application for $500,000 to repair roof at old Carver School

The Eutaw City Council met for a partially virtual meeting on August 24, 2021, that was also broadcast to the public on Facebook-Live due to the increasing numbers of coronavirus cases in Greene County. The Eutaw City Council received reports from a number of city departments and paid regular bills for the month. The Council approved a resolution for Mayor Latasha Johnson to apply for a $500,000 Community Development Block Grant (CDBG) from the State ADECA office, to repair the roof on the Robert H. Young Community Center, formerly the Carver Elementary School. The city acquired the school from the Board of Education several years ago and uses it to house non-profit and small business entities. There are no matching fund requirements for this grant. The grant is due before the next regular meeting of the Council. Corey Martin for the Water Department reported that the department had collected $1,039,398.32 in water, sewer and garbage payments since the October 1, 2020 start of the fiscal year. For the last full fiscal year, the Water Department collected $585,592.17, a difference of $453,806.15. The Department has 1,394 customers and added 8 customers this month in the city and 9 customers on Boligee routes. The Water Department has been working to find and fix meters, find and repair leaks and generally to improve the system to increase revenues and reduce water leakage. This includes collection of past due receivables and closing accounts for non-payment or unwillingness to agree to payment plans to settle past-due accounts. Torris Babb, City Engineer reported on his work to evaluate streets that need major repaving work to be funded by state and local funds. He urged the Council to approve a contract for a company to clean out the sludge in the city lagoon to allow its pumps and pipes to work more efficiently. Babb also reported on FEMA financed drainage repairs, a new building code ordinance, GPS mapping of city utilities and other work. Babb also said he secured permission from ALDOT to close a bridge at the end of Springfield Avenue until it could be redone. Linda Spencer, Magistrate and Court Clerk reported that she was working on plans and procedures to hold City Court virtually beginning next month in September. Ralph Liverman, fiscal consultant presented the city with a financial report for the period October 1,2020 through July 31, 2021. The report listed numerous bank accounts that the city has and transactions made during the fiscal year. Liverman also reported he was working on a budget for the coming 2021-2022 fiscal year and wanted to review this in detail with the finance committee. At this time, subject to changes, Liverman projects a budget with $4,057,856 in revenues and $3,616,191 in expenditures with a surplus of $441,665. Liverman said, “This budget would allow for payment of all long-term loan payments like the water system, lighting at the Interstate Exit, and matching fund requirements for various grants. It also would allow us to consider a leasing arrangement for four new police cars, a knuckle-boom truck, a street sweeper and several pick-up trucks needed to improve the ability of the city’s staff to serve residents.” Mayor Johnson reported that negotiations were on-going with IRS to remove a tax lien on the city for employee taxes during the period 2015 to 2020. “We settled with IRS on some years – 2016 and 2017 – and we are awaiting the final charges for 2018 and 2019, to settle this debt,” she said. The Mayor also reported that she had spoken with Waste Management about delays in collecting city garbage. The company says it has staff shortages resulting in delays in garbage collection. The mayor asked City Attorney Zane Willingham to communicate with Waste Management in writing about their service and contractual violations. In other business, the City Council:

• Approved payment of $1,200 each, to three employees, who were sick with COVID-19, from remaining CARES funds.

• Approved travel for city staff to a training for Municipal Clerks and Administrators in Orange Beach in November; and for a BBI Software conference in Meridian, Mississippi on September 2, 2021.

• Approved a contract of $12,720 with Supreme Electrical LLC to replace light fixtures with LED fixtures throughout City Hall, from the Capital Improvement Fund.

City of Eutaw receives $309,083 payment from American Rescue Plan for coronavirus needs and infrastructure improvements

Police Chief Tommy Johnson and Mayor Latasha Johnson award Certificate of Appreciation to 7-year-old Draylon Davis at the June 8, 2021 City Council meeting for his courage, bravery and presence of mind to call for help for his mother, Marquita Davis, who was having a medical emergency. “His calm response in contacting help probably saved his mother’s life,” said the Chief.

 

During last night’s City Council meeting, Mayor Latasha Johnson announced that the city had received a payment of $309,083.08 from the American Rescue Plan Act federal funds for states and cities to cover coronavirus expenses and invest in infrastructure improvements to improve the city for the future. This is the first half of the funding the City expects to get from the ARPA funds. The Council approved a $2,500 one-time loyalty payment to all city employees who continued to work and provide essential services during the pandemic. “These funds will go to our 40 employees who willingly gave their support and services during a difficult time. They enabled us to keep City Hall open and continue to provide basic services like water, sewer, streets and garbage collection,” said Mayor Johnson. The Council also approved a salary increase to $1,500 a month for City Judge Joshua J. Swords. A $500 increase was approved for City Attorney Zane Willingham. The Mayor said the rest of the funds will be allocated to improvements in the City’s infrastructure, like street repairs, a telemetry system for the Water Department and other projects which will help the long-term development of the City. Mayor Johnson also reported that with the help of the City’s financial adviser, Ralph Liverman and its CPA, the City reached an agreement with IRS to pay $19,715 in tax liabilities for 2015. Records and payments for tax years 2019 and 2020 were accepted. The City was required to file IRS 941 Quarterly Tax Reports for 2018 and the IRS would calculate the taxes due. Mayor Johnson said, “Once we submit all the requested information, the IRS will be able to determine our tax liability for that year. We feel it will be less that the $230,000 previously discussed since some of the taxes for this period have already been paid. Once we reach an agreement on 2018 then IRS will lift the lien against the City of Eutaw.” In other business, at the June 8 and 22 meetings, the Eutaw City Council:

• Approved the Water Department Identity Theft Prevention and Response Plan, since the city is accepting credit card payments on line, this will help protect people’s confidential information.

• Approved contract leasing the city’s farmer’s market space for ten years to the Greene and Sumter Farmer’s Market Cooperative for a nominal amount.

• Approved a contract between the City of Eutaw and the West Alabama Food Bank for the distribution of food to people in need.

• Set a meeting date of June 29 at 4:00 PM for a meeting of the City Council with the City Zoning Board to discuss the location of “modular homes” in the City, based on the ordinances and making more spaces available for mobile homes.

• Ended the City’s mandatory mask mandate for the prevention of the coronavirus but left the decision of wearing masks up to the individual’s discretion.

• Approved rental agreements for Brielle’s Boutique and HUGS A LOT Daycare for spaces at the Robert H. Young Community Center (old Carver Middle School); also approved business licenses for Christ Temple Church for a coffee shop, furniture store and theater; also, a business license for Paula Calligan’s Adjusted Crowns Hair Salon at 322 Brown Avenue.

• Agreed to change signatures on the Citizens Trust Bank bank accounts; and pay bills for the month of June. Mayor Johnson complimented the Chief of Police, Tommy Johnson, on the Police and First Responders Parade held in Eutaw last Thursday, June 17th. Chief Johnson announced that he will be holding a Coffee and Donuts Public Meeting on the second Thursday of each month at City Hall, beginning on July 8, 2021 at 10:00 AM. The public meeting will be a chance for people to raise comments, complaints and suggestions with the Chief of Police and his staff.

Eutaw City Council continues to debate financial issues

The Eutaw City Council met twice during the past month on June 11 and June 25 to do the business of the city. The Council continues to debate financial issues which affect other major policy and project decisions.
The Council still does not have a clear budget, showing income sources and expenditures. A budget and an audit are being worked on but no written information is available yet for the City Council as a basis for its actions. Two separate CPA firms are working on the budget and audits but no documents have been produced yet.
A budget would be helpful for the City Council to see the flow of incoming revenues and the payment of expenses for planning future projects and obligations. The audits are needed to verify past operations to file applications with USDA Rural Development, ADECA and other state and federal agencies for needed equipment and new projects to improve the city.
A listing of bills to be paid was presented at each meeting. The June 11 list shows $276,365 in unpaid bills and the June 25 listing shows a reduction in outstanding bills to $265,243.
Councilwoman Latosha Johnson praised City Clerk Kathy Bir for preparing an understandable list of the City’s obligations to allow the council to make decisions on which bills are most pressing and need immediate payment.
The Mayor suggested using funds in a special infrastructure account, set up by the Sheriff, with bingo funds, to pay for improvements to the Branch Heights Roads. These roads were repaired using funds in the highway tax accounts. Several council-members opposed the Mayor’s proposal to spend these funds to pay other bills and initiate other road repair projects without consulting with the Sheriff and clarifying what the City did and plans to do with funds. Again, it is clear that a budget with up to date revenue and expenditure amounts would help to resolve what seemed to be difficult and at times insurmountable problems facing the city.In a related financial matter, the City Council and Mayor deadlocked in a 3 to 3 vote, with Latosha Johnson, Sheila Smith and LaJeffrey Carpenter voting in favor and Joe Lee Powell, Benny Abrams and Mayor Raymond Steele voting against a proposal for pay increases for the police force, supported by donations from the TS Police League, a bingo charity associated with the Palace Bingo Group. The Mayor voted for a tie vote to stop the motion until he had time to discuss with the City Attorney and other legal advisors.
In other actions, the City Council:
• Heard from City Attorney Zane Willingham that the Sate Legislature had passed local legislation to allow for Sunday liquor sales; Willingham said he would draft a new ordinance for on and off premises sale of alcoholic beverages, for consideration at the next Council meeting;
• Received a report from Rev. Jerome McIntosh of SCORE International, a religious organization that wishes to partner with the City on a job skills training program, to be offered at the Carver School – Robert H. Young Community Center;
• Approved travel expenses for Police Chief Derrick Coleman to attend a conference on leadership at UNA in Fort Payne on June12-14, 2019;
• Referred legal claims from Erica Purse and Roland Elliot to the City Attorney;
• Appointed Mrs. Isaac Atkins to serve on the Eutaw Housing Authority Board of Directors.
During the public comment period, a number of residents complained about drainage, road repairs, grass cutting, refuse removal and other similar problems in areas around the city.

Eutaw City Council meeting reveals continuing controversy between Mayor and Councilmembers over Carver school, water bills and finances

By; John Zippert, Co-Publisher

The official agenda distributed for the October 23, 2018 meeting of the Eutaw City Council was deceptively short. No new business was listed and under old business was one item on political signs. This should have been a warning that this would be a divisive meeting where issues dividing the Mayor and Council would come forward and be aired in public. The Mayor asked City Attorney Zane Willingham to present a draft ordinance regulating the display of political signs in the City of Eutaw. Members of the City Council had the proposed ordinance in writing but copies were not distributed to the public at the meeting. Council members did not raise many questions or objections to the sign ordinance. Willingham asked for suggestions on size limitations of political signs and Councilman Joe Lee Powell and others volunteered to provide more input. The Democrat secured a copy of the proposed ordinance after the meeting. The ordinance is very strict on the display of political signs in the City. Section 1 of the proposal says: “ No political sign shall be erected, constructed, posted or painted on any utility pole, tree, bench, fence, or awning; nor attached to any city, county, state or federal roadway, directional sign or informational sign. No signs shall be erected, constructed, or posted on any portion of the Greene County Courthouse Square Historic District.” The proposed ordinance goes on to limit signage to the period between qualification and election. There is a penalty of $25.00 per sign, ascribed to the candidate whose name is on the sign and whose sign is left up more than seven days after an election. Several political observers, consulted by the Democrat, were critical of the sign ordinance as being too restrictive and punitive especially in its limitations on placing signs at the Courthouse Square, where political discourse is expected during elections in a democracy.

Mayor and Council disagree on use of school

The Council then shifted to a discussion of the use of the former Carver School facility, which the City has acquired from the Greene County Board of Education and named the Robert H. Young Civic Center. When the City of Eutaw acquired the school, the Christ Temple Church was already operating a used furniture exchange in a portion of the facility. In July, the City Council passed a motion, proposed by Councilwoman Latasha Johnson, that Christ Temple Church be allowed to operate the furniture business at no cost for up to one year while the City formulated policies and procedures for use of the Robert H. Young Civic Center. The Mayor and City Attorney Zane Willingham submitted a letter, in August, to the church saying that they would have to vacate the building and remove their furniture because the resolution adopted by the City Council was invalid and procedurally incorrect because the property was not declared surplus before it was provided “at no cost” to the church group. The letter from the Mayor gave the church until September 15, 2018 to vacate the city property. The Democrat interviewed Ms. Fannie Grantham, church secretary and spokesperson. Grantham also attended and City Council meeting and tried to get an explanation of the Mayor’s actions on behalf of the City. The Mayor and Willingham insisted that the Council must rescind the “improperly constructed resolution” but no alternatives were offered to the church for utilization of the building or other available city buildings for a rental charge. The Council by a vote of 3 to 2 with the Mayor, Abrams and Powell voting in favor and Councilwomen Johnson and Smith opposed. Councilman LaJeffrey Carpenter was absent. Ms. Grantham says the church has received this furniture as a gift from various sources and provides furniture to people who otherwise cannot afford it, for a donation, which goes toward the costs of hauling the furniture. “We have tried to help people who needed furniture to be able to get it; this is not a business, it is a community service,” says Grantham. At the City Council meeting, Mayor Steele said that he was concerned about providing space in a city owned building for a furniture business that was competing with Spiller’s Furniture and other businesses in the City, who pay for business licenses. After receiving the Mayor’s letter to vacate the school, Grantham says several meetings were held to try to work out a solution with the Mayor. “The church and our non-profit – REACH, offered to pay rent for the space and asked the City to make a proposal. The Mayor said that his plans for the school did not include furniture and no other city buildings, including an out building at the Armory were available. He did offer to sell us a building, that he owned downtown, next to the cleaners, for $65,000,” said Grantham. Grantham says Rev. Barton, who the Mayor has employed to operate a youth sports program at the school has locked up the part of the building where the furniture is located and the church has not been able to get in to use it since the October 23rd meeting. Councilwoman Latasha Johnson says, “The Mayor has been wrong from the beginning on the purchase and use of the Carver School. We were supposed to work on a plan with the Greene County Commission to purchase the school and use it more widely for all of Greene County. The way the Mayor has treated the church is unfair. My original proposal was to allow them to stay and use a part of the building, at no rent, until we made policies for its use. The Mayor does not want to work with the Council.” Councilwoman Sheila H. Smith said, “ I do not understand what the Mayor is doing. He insisted on buying a school, we cannot afford. Our water meters and bills are still not updated. We do not have a budget and we have not paid our bills.” The Mayor says that the City Council has been unwilling to work with him on the development of a program for young people at the Carver School. “ We have been providing opportunities for young people and we are planning for more activities going forward.”