Published: November 07, 2008 09:53 am         

Welton agreement delayed, loan discussed

WELTON — Discussion on a proposed agreement between the city of Welton and the Welton Fire Department was tabled this week at the request of the city clerk, LeAnn McCallister, who said there were some things in the document that “aren’t quite right yet.”

“The fire company and I can discuss it,” she said.

Mayor Janet Huffman invited firemen who were present to comment, but fire chief Buzzy Wiese indicated he did not want to discuss the issues while “the newspaper” was present.

Huffman declared the topic tabled; then continued with the next agenda item, which was a possible $60,500 loan from Clinton National Bank for the purchase of the fire department’s well and one-plus acres of surrounding land.

Preliminary work on the loan had been obtained in advance by McAllister.

But Huffman said, “I think we ought to be able to pay at least half of that in cash, rather than taking out a loan for $60,000 for 51⁄2 years,”

She went through a balance sheet that had been provided to council members and noted:

“We have $14,882 in the general fund. We should be able to take $5,000 out of that. Also, by the time we pay this, the local option sales tax should also be up to about $5,000. That would give you $10,000 to use,” she said. “We have $2,339 that has been in a checking account at DeWitt Bank and Trust for some time. There is no reason to keep that there. We could close that out.

“We have another $2,000 in an emergency fund which LeAnn is going to take out of First Central Bank. Then there is a $6,000 CD (shown on the balance report) and a $6,000 CD in the Delmar branch of Clinton National Bank. That gives you $26,000, and depending on when we pay, we could probably get another $4,000” to make $30,000.

“Then we could hold the loan, hopefully, to $30,000 or, if necessary, take it for $35,000, and put it over three years and not pay as much interest,” she said.

Huffman told the council members they didn’t need to make a decision immediately.

“It’s something you should think about,” Huffman said.

McCallister said she had just had the bank approve “up to $60,000.” The actual amount of the loan would be for whatever was needed, she said.

Other business

• Matt Saur, project engineer for the municipal water system now under construction, reported the water main contractor is making good progress through town and the Main Street portion should be done in November.

It will still be a few months before water flows in residents’ faucets, he said.

“A certified plumber is going to make the internal connections in each house,” he said. Then the capping of wells can begin.

• Final reading was given to an amendment to the water rules and regulations for the new municipal water system. The amendment deals with residents who wish to have their private wells not capped. If they meet the requirements of the amendment, they must file an application with the city clerk in the near future, because capping is expected to be done during the winter.

The issue had been debated for several months and the amendment, for outdoor use only, was prepared by East Central Intergovernmental Association. Regardless of the use of the well, everyone must be connected to the municipal system, Huffman emphasized. Adoption of the amendment was approved.

“I feel the council has addressed the issues of capping wells and they have gone to a great amount of work to do this,” Huffman said.

     

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