The town of Alderson has rescinded authorization for using FEMA sewer funds to pay for other bills.
The previous resolution was passed by the Alderson Town Council in August, authorizing the transfer. However, in the Thursday, October 14, meeting of council, this motion was rescinded upon the request of Mayor Travis Copenhaver.
“I asked council to do something that I would probably fall on the sword for if we had actually done that when I asked them. [I asked and they approved] to use $70,000 out of the general fund. It was not my intent to use that $70,000, but I was that close,” Copenhaver said, holding his fingers an inch apart.
During the flood of 2016, the Federal Emergency Management Agency distributed funds to the town to assist in repairs and hazard mitigation. As of 2021, the town still has approximately $200,000 worth of these funds in the bank.
“We have not asked to tap these funds but I’m asking you to tap these funds now because of the situation we’re at,” Copenhaver said during the August meeting. “You’ll remember that we stopped employee contributions to their retirement, there is absolutely no spending. … We’ve been sitting on accounts payable for two months – we’ve only paid for chemicals for the water plant. This is no secret to you all. … It is relative to the black hole that I’ve discussed now since April. Right now we are at a deficit. We have been sitting on funds we’ve been trying to give back. … I’m asking for it in the form of a resolution to give me authorization to take that from funds that are due to be paid back from the 2016 flood. We don’t have a line of credit, I can’t go and get a loan, and I’m asking for your permission to transfer those funds until we can get through this financial crisis.”
Since then, FEMA has been in touch with the town, according to Copenhaver, finalizing paperwork needed to return the funds.
“First of all, we can’t take FEMA funds to pay bills that aren’t actually supposed to be paid. This [new proclamation] takes [the potential fund transfer] off the book,” Copenhaver said. “… FEMA will be receiving $175,983 dollars back as a result of this action. The initial payment was $237,948.95. We spent $61,965 to do sewer repairs. You all will remember that FEMA wanted us to replace the lift stations that were scheduled for demolition and then to basically give them back the scrap price after we did the project, which was an asinine waste of tax payer dollars. Hence, we’ve been penalized since 2017’s audit for more money in the bank than the insurance covers, so this also fixed the problem of getting the money to go back within the next two weeks.”
The resolution notes “whereas, the council did unanimously authorize Mayor Copenhaver to transfer $70,000 from Sewer Funds to the general fund, and … this action did not occur and there was no transfer of funds from the Sewer Reserve (FEMA) or any funds under control of this body. Therefore, it seeming proper so to do, council does rescind the previously resolution to authorize the transfer of funds seeing there has been no action taken on the previously passed resolution.”
In other business:
– Copenhaver noted that the city’s annual audit by an outside firm would be conducted over the next month.
– Council approved two motions, appointing Carol Reed and Lisa Marie Cropper to the library board after the departures of Luther Level and Judy Lohmeyer.
– Work on the Town Clock project is expected to begin next week. Copenhaver took a moment to clarify where the funds for the project came from – “I want to be very clear since there have been questions and nasty comments. The clock is not funded from the municipal funds at all. Nor is the work. … Main Street, who is our best business partner ever, was able to come up with $20,000. … They will cover the project 100 percent. We have been a funnel through the agency, which we have done for many projects, because it got the ease of ordering.”
– Copenhaver noted that “Main Street has benches that we’ll be replacing at the gazebo that are not public funds as well. Margaret [Hambrick] was able to write a grant for those funds as well. So there’s going to be new benches at the gazebo, we tore those other pieces of junk out of there.”
– The town will also carry a new insurance policy once again. Copenhaver explained that “at the beginning of the day today, I started out with an invoice for $71,577 for our insurance through Travelers this year. You all know I hate October because these policies go out and you always get these vultures that like to come and they want to tell us how to save money. I will say this – as of 7:05 p.m., we’ll be returning back to the Insurance Corp of West Virginia, where we were previously, in the amount of $52,598.”
