Athens-Henderson County Now

Athens Council Receives Positive Financial Audit

The Athens City Council received the city’s annual audit Monday night, and Marlin Smith didn’t mince his words.

Smith of Smith Lambright & Associates said the city’s finances are “in very good shape.”

“(The city) has good reserves and good position. They are able to pay their bills. You can’t get any better than that,” he said.

The independent audit is required every year, but this year it happened to come on the first day of early voting in an election where the city’s finances have been strongly criticized.

Mayor Jerry Don Vaught didn’t miss the chance to get Smith on the record, asking the auditor a series of questions.

Below are Vaught’s questions paraphrased and Smith’s answers in quotes:

Are we in a good condition financially: “Yes. You have $3.8 million in unrestricted assets. ”

In your opinion is the financial staff managing the financial assets of the city appropriately: “You have one of the best financial staffs in the area. We audit 20-something school districts in the area and several cities, and other municipalities like fire districts and that kind of thing. You have one of the best.”

What is the cash position in the utility fund: “You started the year with about $2.5 million and you increased your cash by $341,000 leaving a balance of cash of $2.9 million.”

In the last 18 years since David (finance director David Hopkins) came on board with us, and you have been auditing us, have you always found the finances to be managed well: “Yes.”

Is this opinion the highest opinion auditors give in an opinion such as this: “Yes, it is an unmodified opinion, which means we didn’t have anything negative to say about it.”

City Claims AMWA Trying to Stop Election

((UPDATED throughout to add comments from AMWA General Manager Wylie Pirkle. 10:20 a.m., Tuesday, April 29.))

By Michael V. Hannigan

Following Monday night’s Athens City Council meeting, Mayor Jerry Don Vaught told reporters that the city has received an email from Athens Municipal Water Authority (AMWA) attorneys which references AMWA plans to file “an emergency motion to stop the election.”

AMWA General Manager Wylie Pirkle told Henderson County Now Tuesday morning that the water authority never planned to file the motion.

The City released the following press release on the issue Monday night:

Athens City officials on Monday expressed disappointment that the Athens Municipal Water Authority (AMWA) intends to file a lawsuit this week to stop the May 10 election that will decide its future, saying AMWA is attempting to take this important decision out of the hands of the electorate.

“I listened to AMWA board members commit publicly that they would accept whatever the public decides in the election,” said Mayor Jerry Don Vaught. “Now we learn that AMWA board members are trying to block the election altogether and silence the voices of Athens citizens.”

The City received an email over the weekend referencing the filing on Tuesday, April 29, of “an emergency motion to stop the election.” Athenians are scheduled to decide on May 10 whether AMWA should continue operating or be dissolved.

Athens City Attorney Connor Bateman said that “the good thing about this unique issue is that the people of Athens get to make the ultimate decision. Whatever the outcome, the election would allow citizens of Athens to make the decision and that’s a good thing for Athens.”

News of AMWA’s plans come less than a week after AMWA board members made public statements indicating AMWA would drop its $4 million claim against Athens taxpayers in the lawsuit it filed against the City in November 2013. To date, AMWA has not dropped its $4 million claim.

“AMWA’s board has made it clear that they are not shy about filing litigation if they think those lawsuits — however costly to taxpayers — will benefit AMWA’s strategy,” said Vaught.

AMWA General Manager Wylie Pirkle said Tuesday morning that the water authority never planned to file the motion. He said the email was just AMWA’s attorneys asking for open records for due diligence.

Pirkle said that the AMWA board has discussed many options for dealing with the city and one of those involved looking into the possibility of stopping the election based on the AMWA belief that the city passed the original ordinance to dissolve AMWA illegally.

But Pirkle said the AMWA board never voted to go forward with that approach.

“Our decision was that we got (the issue) on the ballot and we want the voters to decide,” he said.

Mayor Responds to AMWA Vote to Drop $4 Million Demand

Sunday, Athens Mayor Jerry Don Vaught issued a response to the announcement last week that the Athens Municipal Water Authority (AMWA) board had voted to drop the $4 million demand from its lawsuit against the city.

In an email to HCN, Vaught wrote:

The City of Athens was surprised by AMWA’s latest statement that its lawsuit for millions of dollars was never about the money. The City is waiting to see if AMWA will officially dismiss its claim for money. As of this update AMWA has made no official filings with the Court of Appeals.

Don’t be confused, AMWA wants to have it both ways. They announce they have dropped the monetary claim but they still want to sue the residents.

It is very concerning AMWA refused to mediate and filed the $4 million lawsuit against the citizens. Now on the eve of early voting they say it was never about the money. What will they do next?

The latest actions taken by AMWA is just another example of why the City Council believes it is in the best interest of Athens that AMWA be dissolved.

For more background about this issue, click here.

Athens Kindergarten Roundup

11 Thoughts From the Athens City Council, AMWA Board Forum

By Michael V. Hannigan

Candidates for the Athens Municipal Water Authority (AMWA) board and the Athens City Council came together Thursday night at the Cain Center for a forum sponsored by the Athens Daily Review and the Cain Center.

While these types of events are a great chance for voters to meet the candidates, it isn’t often that any new information is actually learned. Last night, however, AMWA incumbent Ed Gatlin dropped the bomb that the water authority voted yesterday afternoon to remove the $4 million demand from its lawsuit against the city.

That was pretty important news. Here are 11 other thoughts from the forum.

1. Give Athens Daily Review Publisher Lange Svehlak and Editor Chad Wilson credit for putting on the event. These things aren’t as easy as they seem.

2. The forum highlighted the fact that the Athens City Council seats are separated into places. That means particular individuals are running against each other rather than everyone running in one big group (like the AMWA board).

The City Council election breaks down like this: In Place 1, Joe Whatley against Carol Barton; in Place 2, Charles Elliott against Aubrey Jones; and in Place 3, Tres Winn against Elaine Jenkins.

The AMWA Board race includes Mike Peek, Herbert “Ed” Gatlin, Gregory Hisey, and William “Billy” Carter.

3. Carter was the only candidate who did not attend the forum.

4. There really hasn’t been much doubt that this election is almost exclusively about the future of AMWA and Wilson’s questions to the candidates showed that. Two of the four questions to City Council candidates were about AMWA and a third question started, “Other than water ….” Continue reading “11 Thoughts From the Athens City Council, AMWA Board Forum”