WEST POINT — West Point”s Board of Selectmen thought twice before rubber-stamping a measure presented as a surefire way to recover hundreds of thousands of dollars in delinquent utility fees Tuesday night.
Mayor Scott Ross and City Administrator Randy Jones endorsed a contract with Online Services, a debt collection agency which tracks down delinquent account holders.
Jones explained Online Services makes its money by tacking an additional 35 percent surcharge on every debt collected before returning the initial past-due fee to the city. He said many public utilities use the system, which tracks customers primarily by Social Security numbers.
Ross endorsed the system as a no-cost method to recoup debts, many of which are currently considered uncollectable.
“We don”t pay anything. And they don”t get paid unless they collect,” said Ross.
But Ward 1 Selectman Rod Bobo pointed out an ambiguously worded statement which could make the city responsible for paying up to 35 percent of collections.
“We should table this. There”s some pretty ambiguous language,” said Bobo.
City Attorney Orlando Richmond agreed.
“We need to talk to someone to get clarification,” said Richmond.
The city is also waiting on a resolution from Municipal Court Judge Mark Cliett, City Prosecutor Angela Turner and Municipal Court Clerk Rommell Thomas suggesting a method to collect outstanding court fines. Online Services does not handle court collection.
Another aspect of utility fees was discussed during the meeting”s public appearances portion. Former mayoral candidate Xanthe Joiner addressed the board to complain about electric bills spiraling out of control, claiming her grandmother had received several consecutive $400 bills.
“How can one who makes $1,000 a month pay a $400 electric bill?” Joiner asked the board. “I hope we start looking into the electric company because we do not want to happen here what”s happening in Aberdeen. So I”m going to be on the backs of everyone about doing something.”
When Bobo asked Joiner what she wanted the board to do, Joiner mentioned a payment plan which was discussed by the board several months ago but tabled and not revisited. She also complained that she was unable to pay the remainder of her grandmother”s bill with a debit card.
“In this day and age we should have upgraded systems and payment plans,” said Joiner.
The electric department will soon employ two meter readers after the board decided not to reverse its cancellation of a contract with North Mississippi Utility Service.
Jones says two current city employees, likely with meter-reading experience, will take over the service which NMUS had provided.
Ward 4 Selectman Keith McBrayer moved the board maintain its contract with NMUS, claiming the in-house cost to the city would not save any money, but the motion died for lack of a second.
The meter readers are scheduled to be in place by the time the city”s contract with NMUS expires to prevent a gap in service.
Finance report
City Accountant Lisa Klutts informed the board the city had a $42,000 surplus for February and an $877,000 surplus to date during her monthly finance report. She says cash flow, another important factor, is slowly beginning to improve and Jones reported all city departments are currently in the green.
To remain in the green, the city is looking for additional revenue sources. One such source could be beginning fuel sales at the West Point airport.
Airport options
Jones presented the board with options for purchasing various amounts of fuel to service the 14 tenant aircraft at the McCharen Field airport, as well as visiting pilots. The board tabled the issue to better research the possibilities.
“We”re so close to fixing the budget,” said Ward 5 Selectman Jasper Pittman of his apprehension toward spending a large amount on fuel.
Jones is confident the sale of fuel would be a money-maker for West Point and could also funnel business to surrounding restaurants and shops as pilots wait for their aircraft to be refueled.
“The fuel they”re spending flying to Columbus or Louisville is very expensive. If you flew to Louisville and back, even in a small plane, you”re probably going to burn 8-10 gallons of fuel. And at $4 per gallon, it costs you $30 to go there,” said Jones. “If you fill up our plane here, even if it”s the same price, it didn”t cost you $30 to go somewhere else.
“There”s a competitive advantage to being able to have fuel available here. Convenience and price makes all the difference.”
Jones says West Point could start off buying 5,000 gallons of fuel at $15,000, plus shipping costs. But it would be cheaper per gallon to buy more.
He says the selectmen will likely hold a work session to decide how much fuel to purchase.
In other business the board:
· Voted to hold a public hearing before passing a moratorium on the opening of new check cashing businesses in city limits.
· Voted to submit the paperwork for the refinancing of general obligation bonds received in 1999 at an estimated savings of $155,000 over 10 years.
Jason Browne was previously a reporter for The Dispatch.
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