By RANDALL ALLEN

Horizon Reporter

CELINA-Facing a looming state-mandated increase, city alderman voted to increase the water rate by 10% following recent audit concerns. This and several other issues were discussed here during a busy September meeting last week.

Auditor John Poole spoke to the city legislators during their August meeting, where he highlighted depreciation costs of approximately $616,000, which caused the City of Celina to lose money in the water fund for two years in a row.

“You can’t lose money two years in a row,” Poole told aldermen in August.  “This is not good news.”

Poole explained, due to the circumstances, the state would step in and set water rates for the city, most likely at a rate higher than what the city would set, if aldermen did not take action.

During last week’s meeting, city legislators faced the problem head on.

Instead of facing a potential unknown increase from the state, aldermen unanimously voted to increase the water rates by 10%.

A stipulation was also put in place allocating 2% of water funds to be set aside for repairs of aging water tanks.

Alderman also unanimously voted to set the property tax rate back to the original amount of $0.8732 per $100 of assessed value, following a declining trend in sales tax numbers.

Facing these decisions, aldermen considered reducing the amount that could be spent on discretionary items without aldermen approval from $12,500 to $2,500.

“Does the state have a maximum that the mayor can spend without a bid?” alderman Kenny Westmoreland asked.

Mayor Luke Collins replied, “$25,000,” before Westmoreland continued, “$25,000, and we are going with this (lower amount).  Why would we want to go backwards?”

“We have gone backwards, Kenny,” alderman Micheal Boles said.  “We had a $2 million fund balance.”

“I don’t believe our mayor has done anything expensive,” Westmoreland said.

“I have done what the alderman said to do,” Collins said.  “They said we needed more valves, (leak detection) listening devices, a new excavator, a new trash truck…  tools that (were needed).

“I believe in democracy.  Whatever you all say, I will say ‘yes sir’ and I will do it.  If there is… something you don’t want to do, something at Donaldson Park, the veteran’s monument, something you don’t want to do, we won’t do it.”

Following a bit more discussion, alderman Tracy Mills offered his thoughts.

“Where I am at on this, if we are going to show that we are going to raise rates, we have to show we are going to cut back on a little spending,” Mills said.  “I have a family of four.  This 10% affects me too.”

Boles made a motion that reduced the amount of discretionary spending without approval from $12,500 to $2,500.  Mills seconded the motion and it passed 2-1, with Westmoreland voting no.

Other business

In other business, aldermen approved multiple grants, designated a historical zone, accepted a loan for a fire truck, and recommended a codes enforcement.

Mills made a motion to approve the city applying for a property protection grant, which aldermen said could fund a new gate and cameras at Donaldson Park.  Boles seconded the motion and it passed 3-0.

Purchases for a grant the city previously received for computers and printers to be installed inside the city’s law enforcement vehicles were approved.

Boles made motion to approve the purchase of four computers and six printers for city police vehicles.  Mills seconded the motion, and it passed unanimously.

A $1,000 grant Haley Barnes from the UT Extension Office helped the city obtain was approved unanimously and will be used for walking trail improvements and walking trail signage at Donaldson Park.

Boles made a motion to make all areas within the city be designated a historical zone, which would allow businesses outside the square to utilize grant funds from CBDG grants and other future grant funding.  Mills seconded the motion, and it passed 3-0.

Boles also made a motion to approve accepting a loan from the Bank of Celina for the purchase of a fire truck.  Mills seconded the motion, and it passed 3-0.

Three loan bids were considered, and the Bank of Celina provided the lowest interest rate amount of 3.9%.

Westmoreland also recommended the city begin codes enforcement on a property located on College and Mitchell Street.