He reported that the state required audit for 2005-2006 was in good standing. The city has good internal control and the policies are in good order, Poole reported.
The utility money, which is separate from other money, but includes the water, sewer and gas departments, had approximately $1.2 million in profit. He also noted that the departments had grant money donated including the money donated for the water lines from Lafayette to Red Boiling Springs. Without the grants, the department had an estimated profit of $500,000.
Poole also reported on the general fund and others stating that all did well in the budget for expenses and revenues.
Several resolutions were read and approved by the council including 12-05-2006 to adopt a hazard mitigation plan of the City of Lafayette. This plan had to be adopted by the city to be compliant with rules to apply for certain grants.
The council approved an amendment for the 2006-2007 budget for money used to purchase the drug dog and equipment needed for the drug dog. This was on third and final reading.
The council also approved a resolution calling for a public hearing to determine whether certain territory should be annexed to the City of Lafayette. The property is owned by Larry D. Driver.
All December employee evaluations and salary increases were approved.
Fire Chief Keith Scruggs reported that he had additional money in his salary line and requested that volunteer firemen, those who are totally volunteer members, receive a $50 Christmas bonus. His request was approved.
After a motion and second, the council approved the nomination of Reba Bellar to continue to serve on the recreation advisory board. Her term is up in January.
Don Woods requested that he be allowed to assume the cardboard route pick up for the City of Lafayette. The city would no longer pick up the cardboard and they would also not be a third party in the pickup. Woods would contact all names on the pick up list and assume all responsibilities. He would establish a route with the customers.
The council agreed to his request after city attorney Jon Wells draws up a contract between Woods and the city. This would be a two to three year contract.
The council approved a request by Mayor Wells to place a slip-line on the city pool drain line. The current line has been losing up to 1500 gallons of water a day for the past two years. If the city does not correct the problem the continued erosion of the pipe could cause the bottom of the pool to break at any time.
Toward the end of the council, meeting Mayor Wells presented information concerning the moratorium placed on certain areas served by sewer department.
The city is currently working toward correcting this problem. They have spent approximately $100,000, part of which was grant money, to smoke test the pipes and find the problems.
The mayor informed the council that the date to have all the repairs corrected was December 2009. He also informed the council that he was unsure of where the city would get the money to continue to search for the problem areas. One option, he presented, was that the city borrow money from the state revolving loan department and pay the note off over the next 20 years.
No action was taken on this matter.
“It is an incredible expensive procedure to find these problems and then correct them,” said Mayor Wells. “I just wanted the council to be updated on the situation and understand that it is not going away.”
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