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March 19, 2010

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Vonore may need loan to pay bills

Published: 9:42 AM, 11/12/2009 Last updated: 9:50 AM, 11/12/2009
 

Author: Mia Rhodarmer

Vonore Mayor Larry Summey closed Tuesday's town meeting with an update on the town's financial situation. He listed several bills the town has due, but said the town may have to take out a loan to pay them.

On Oct. 1, the town had a payment of $20,000 due to Tennessee Municipal League for worker's compensation insurance. The town paid $5,000 and is hoping to get a grace period to pay the remaining $15,000.
The final $60,000 payment on the lease for the police cruisers was due in October, but has not been paid.

The 911 Center has also sent the town a $64,000 bill for past due contributions since October 2002. The 911 Center bills the town $20,000 each year for its share of the calls that come through the dispatch center. However, the town only paid $12,000 each year.
There was also a question about two loans taken out by Former Mayor Fred Tallent. Alderman James "Hamp" Brown said he was not aware of the loans.

"That's what happens when you have one person running everything," he said. "The right hand doesn't know what the left hand is doing."
On Wednesday, town Recorder Rodney Tallent said the town got a $100,000 line of credit last fall, which was used to help pay bills when cash flow was low.  The town took out a second $100,000 loan in September of this year and the note will be due in March.
The town also has a $40,000 liability payment due in March.

Recorder Tallent said the town receives most of its revenue in February or March after people have paid their property taxes. That means there is less cash flow later in the year.
And, this year there has been a decline in sales tax revenue, so that has impacted the town's budget even more. For the 2008-09 fiscal year, state and local sales tax collection totaled $418,968 compared to $442,542 the previous year.

The mayor asked for a motion to allow he and Recorder Tallent to get another loan to cover the payment for the police cruisers and possibly the remaining $15,000 insurance payment.  The motion was approved.

At the September meeting, the mayor asked for an audit of the books from July 1 to October 1, 2009. However, the audit cannot be done until the audit for the last fiscal year is completed.

Police Department
Alderman John Hammontree updated the board on changes in the Police Department. The board approved the hiring of Mike Myers as interim police chief, who was sworn in on Oct. 30. Myers will work a 90-day probation period and then if there are no objections from the board, he will be hired permanently.

Former Chief John Hines is now a patrolman as is Robby Lovingood. The detective captain position previously held by Earl Long has been eliminated.
Myers reported the department has changed shift schedules and there may be a possibility of adding more patrol officers and part-time officers.

In other business:
The mayor announced the town received a $270,000 grant for sewer line improvements. There will be a meeting with state officials on Nov. 23 to learn more about how the money can be spent.
The board approved the appointment of John Hammontree as vice mayor.

Alderman Dave Evans announced the Christmas parade will be at 2 p.m. Saturday, Dec. 19. There is a new route this year. The parade will leave Vonore Middle School, travel down Hall Street and end at Vonore First Baptist.

The board agreed to explore the cost of having a town Web site.
The board approved the first reading of the flood plain ordinance. A public hearing on the ordinance will be held at 6:45 p.m. Tuesday, Dec. 8. The ordinance is part of the process for adopting the new Federal Emergency Management Agency flood maps, which go into effect in February. The ordinance must be approved for the town to continue to participate in the National Flood Insurance Program, which allows people to get flood insurance on their homes and property.
The board approved hiring Tammy Sarver to clean Town Hall.
The next Vonore town meeting will be at 7 p.m. Tuesday, Dec. 8 at Town Hall.

editor@advocateanddemocrat.com | 337-7101

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