Council nixes converting sewer fund loan into transfer

Wednesday, September 20, 2006

By Ralph Pokorny

Nevada Daily Mail

Tuesday night the Nevada City Council voted 3-1 to keep a $420,000 interfund loan on the city's books rather than change it into a fund transfer that would not have to be repaid as recommended by Terry Sercer, who the council hired to look at the city's current and possibly pending financial problems.

Dick Meyers, who voted to change the loan into a transfer during the Sept. 5 council meeting, joined with Bill Gillette and Russ Kemm Tuesday night to keep the loan on the books. Bill Edmonds voted for the measure Tuesday night and Jim Rayburn, who also voted to turn the loan into a transfer on Sept. 5, was absent. Gillette and Kemm voted against making the change during the Sept. 5 meeting.

The loan was made in 2003 from the water and sewer fund to the general fund to cover a shortfall that year, caused by the city changing from collecting its own property taxes to having Vernon County collect Nevada's property taxes along with the county's taxes. The change in the collection method delayed the city receiving their property tax revenues until January instead of in December.

Kemm said that he preferred that it remain on the books as loan, as a reminder of what was done in the past.

"It will still be a loan even if it stays there forever," he said.

"It's been there for three years and I don't see that the city will ever have the money to repay it," Meyers said.

"We didn't make the loan," Kemm said.

In other business the council:

* Deadlocked on a general ordinance concerning political activity by city employees. Bill Edmonds and Russ Kemm voted for the measure and Bill Gillette and Dick Meyers voted against it. The 2-2 vote means that the city council will have to try again during the Oct. 3 council meeting when all five council members are present.

* Voted 2-2 for a measure to change the council meeting back to 7 p.m., from 6 p.m. The council will have to take this up again during the Oct. 3 meeting.

* Accepted the low bid of $10,354.92 from Orr Safety Corp. for new higher capacity SCBA tanks for the Nevada Forward Regional Response Team. The new air tanks will give members of the team one hour of air, instead of the 30 minutes their current tanks provide. Gary Herstein, director of public safety, told the council that the team members are using the air tanks from the time they put on their hazardous materials suits, until they are decontaminated after they leave the area of the contamination. The larger tanks will give them more time to work on the site.

* Passed on first reading a general ordinance approving five new handicapped parking spaces at Crowder College. Three spaces will be on the north side of Edwards Street and two spaces will be on the east side of West Street. The ordinance also removes the two-hour parking limit in the 300 block of West Cherry Street at the request of the owners of the Wellness Company.

* Passed on first reading a special ordinance changing the zoning of the property at 1207 S. Main Street from M-1, light industry, to C-3 commercial at the request of Gary Good so he can demolish the current building on the property and build a new structure to house his truck as well to live in. People are not permitted to live in areas zoned M-1, but may do so in areas zoned C-3.

* Passed on second reading a special ordinance approving a contract with Vernon County for processing the city's property taxes.

* Passed on second reading a special ordinance releasing the Neighborhood Improvement District assessment against Lot 21 of the Ashland Estates plat 1 development since this lot was sold in June. Sidewalk construction, as required in the development agreement, has not been completed on this property because of ground settling where the sewer line was installed. When the settling issue is corrected the sidewalks will be poured. There are still 18 properties that still have assessment against them, which will be released as the sidewalks are completed.

* Passed on second reading a special ordinance authorizing the execution of a contract with the Missouri Department of Social Services, Family Support Division for an emergency shelter grant. This is the annual grant to help fund the Moss House operations.

* Ron Clow, planning director, told the city council that Nevada and Vernon County would hold their annual fall cleanup day on Oct. 21 at the city-county recycling center. In addition to the center's normal activities it will also host a hazardous household waste collection as well as tire and electronics collection and will have dumpsters for city and county residents to get rid of unwanted household items.

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