Loan charged to Wastewater wasn't department's

Wastewater's $146,386 under-budget in loans stemmed from a loan that didn't belong to the department, Finance director LaVera Kuykendall told the City Council's Finance and Purchasing Committee, Friday.

The department budgeted $8,614, but spent $155,000 on loans in 2011, according to financial records.

"Actually, that wasn't a wastewater loan," Kuykendall said. "It was a situation, something started by the previous mayor, but wastewater was paying it. So they won't have that this year. End of story."

"So it was a debt to another department?," Councilman Stan Parks asked.

"End of story," Kuykendall responded, assertively.

During the public comment period, resident Carol White asked for more specifics.

"I don't exactly know what it was," Kuykendall said. "It was a loan, it was being paid back by wastewater, but that error has been fixed and it won't happen in this year. We've taken care of that."

Responding to a follow-up from local resident Joe Evans, Kuykendall said it was a "third-party, vendor type" loan.

Saturday morning, Mayor James Sanders said he would have to research the matter to give specifics, noting "I don't have the paperwork in front of me." He planned to meet with the finance department on Monday.

The $50,740.31 in miscellaneous was also part of the loan, Wastewater superintendent Kenneth Ellis said, responding to a question from White.

The Wastewater Department's budget was one of several discussed during the three-hour Finance meeting. Others included: Thunder Bayou Golf Links, the Delta Gateway Museum, the Blytheville Youth Sportsplex and contributions to Main Street Blytheville and the Ritz Civic Center.

The wastewater department budgeted $2,043,900 in 2011, and spent $2,119,481.67, which includes the loan.

That also includes $487,499.69 for the Milestone Study, which was budgeted for $325,000.

Ellis noted overage Milestone Study funds from the previous year were used.

The Milestone Study is a sewer upgrade project being mandated by the Arkansas Department of Environmental Quality. Originally, it was a 5-year, $2.5 million project, but late last year Mayor James Sanders negotiated with ADEQ to drop it to $1.5 million over five years.

In 2010, the Milestone Study, paid for by a monthly $5 ADEQ fee, collected $302,764.84. Officials only spent $19,511.30 of the funds, which carried over into 2011. Last year, the Milestone Study collected $392,748.25.

"What ADEQ allowed us to do, really anything we upgrade in the system, we can use against the Milestone," Ellis said. "So if we upgrade a pump station, at first it wasn't going to be allowed, but now it can be."

He said wastewater's general revenue "was really good for 2011" so it used "some of our general money."

According to the Finance office, Milestone funds are put in the sewer general fund, which is separate from the city's general fund.

Before cuts, Wastewater's proposed expenses add up to $1,110,500 versus $1,968,550 projected revenue. According to finance records, in 2011, the sewer department collected $1,888,232.23 and spent $2,119,481.67.

"We have some adjustments to make," said Councilwoman Shirley Overman, who chairs the Finance committee.

Delta Gateway Museum

Sanders cut founding Delta Gateway Museum director Leslie Hester's budget about $5,000, before submitting it to the City Council.

The Finance Committee made some changes as well, moving $600 from the travel and meetings line to professional services to use an accounting firm to keep tabs on the museum spending.

The board is checking several items in the proposed $69,353 budget, which includes a $41,600 salary for the director.

If approved, the director's position moves from 30 hours per week to 40 hours at the same rate.

Blytheville Youth Sportsplex

The Blytheville Youth Sportsplex proposed budget is $162,740, some of which is expected to come out of the 1/4-cent parks and recreation tax.

One major item is a $25,000 for a lighting project, but Golf Course Facilities Board president Jim Vincent said the city might be able to get a grant from the Arkansas Department of Parks and Tourism to pay for it.

The biggest proposed item is $65,420 in salaries, which includes one full-time grounds keeper and 5-6 seasonal workers, according to Blytheville Baseball Softball Boosters' Sam Macre.

The proposed budget says James Travis has been working full-time hours and should be a full-time employee with benefits, which would give the Sportsplex two full-time employees.

Macre noted the fields are mowed daily and maintained properly. He noted the Sportsplex has at least 150 volunteers each year.

Main Street Blytheville

Main Street Blytheville director Matt Perkins updated the board on the organization's progress.

Main Street Blytheville has requested a 10 percent cut from its usual $40,000 contribution from the city. Perkins explained Main Street Blytheville lowered the 2012 request to $36,000 because of the city's financial struggles.

He noted the organization didn't receive its monthly contribution in November or December.

Main Street Blytheville has been working on the interior of the Greyhound Bus station, using some grant funding to upgrade the facility.

The organization's main focus is downtown economic development.

Ritz Civic Center

The Ritz Civic Center is once again requesting $45,000 a year, which is a management fee.

The Mississippi County Arts Council manages the Ritz. According to David Lyttle of the Mississippi County Arts Council, the city is billed for water and property tax, and the $45,000 management fee covers about $400-500 a month for salaries. There are two full-time employees at the Ritz.

The city is also responsible for major repairs to the Ritz.

Lyttle said the Arts Council pays all the utilities, including gas, electric and phone, along with pest control, basic insurance and the remaining salaries.

It also pays for programing, via donations from individuals and companies.

When going after grants, Lyttle said, the Arts Council includes water as a city in-kind donation.

No other Finance Committee meeting had been set at press time.

The Blytheville City Council is scheduled to meet at 4 p.m. Tuesday to pass the 2012 budget.

mbrasfield@couriernews.net