The town of Cumberland Gap fell approximately $1,300 short in their water fund account this month. Town Recorder Linda Moyers discussed the town’s current financial crisis.
“We are okay in our general fund this month, but we are around $1,300 short in our water fund,” Moyers explained. Due to the office being closed for the holiday season, she explained that not everyone in the community had paid their water bills and that there is still money to be collected.
“We are down quite a bit... but it’s about the cutoff date for them,” Moyers stated. She went on to say that it will likely take all the money the town collects within the next week to pay Lincoln Memorial University (LMU) for their utility services.
According to Moyers, the town of Cumberland Gap commonly purchases their water from LMU. She explained that periodically LMU must buy water from the Arthur-Shawnee Utility District — due to filter-related issues — and their rates differ from the norm; therefore, Cumberland Gap must cover the difference.
John Ravnum made the suggestion to place a five dollar surcharge on the water bills of all 160 customers within the community — in order to “take care of the shortfall.” He proposed to simply place the suggested surcharge on all of the bills for the next three months. According to Ravnum, the proposition would help the town generate the money needed to cover all losses.
“It won’t be perpetual hopefully,” said Ravnum in relation to the surcharge.
Ravnum continued:
“This is not a happy suggestion. So to try to get rid of this problem, what I am suggesting is that we all make a motion to go ahead and put a surcharge on the bills that will be sent out this month.”
Attorney Robert Estep then explained to Ravnum that it is unlawful to raise rates without notice.
“LMU is selling us water. We are taxing it,” Estep explained to Ravnum. “We have different obligations in regard to notice, and I don’t believe you can just stick a surcharge on there.”
Estep then said that the town needs to raise enough money to cover these recurring situations, but that it needs to be done through appropriate procedure.
“There is a procedure that is set forth in your ordinance that you’re to follow, and that’s what I suggest you do,” Estep declared. “It’s not a bad idea, but I want you to follow correct procedure.”
Ravnum replied, “I want to follow correct procedure, but when you’re standing in a swamp full of alligators... what can you do?”
He then stated that the board should go ahead and file the necessary procedure.
“My motion would be, as soon as possible, to put this five dollar surcharge on for three consecutive months; thereby putting a life on the surcharge,” said Ravnum.
Alderman Joan Webb responded to Ravnum’s motion:
“It’s been four years since we have raised our rates. Other people raise theirs more often than that — and that is why we need to look at everything.”
Mayor John D. Douglas then recommended to the board to take $1,300 out of the money market account to pay the town’s monthly bills. All were in favor of the decision except Alderman Ravnum.
“Since there is no provisions to try and put the money back, no,” Ravnum contended.
Douglas then made the motion to pay the remaining bills, and all agreed.
Gina Bowen, the Tourism Director for Claiborne County, attended Monday’s regular-called meeting, and spoke about the upcoming White Lightning Festival.
“We are working very hard on the festival coming to Cumberland Gap this June,” said Bowen. “The planning on that is going very swiftly. There is much, much interest, and we are very excited about that. We have been in contact with a lot of media, locally and also regionally, and we are getting a lot of support there. We’re asking for sponsorships. We’re forming committees. Everybody is real excited.”
The White Lightning Festival has been set for June 26, 2010.
In other business, the board discussed and/or approved the following:
• The minutes of the December 7, 2009 meeting
• Financial statement and updated budget status
• The board approved the purchase of five new water meters for the town
• Town water and sewer concerns/updates
• Fire Department Chief John Adams gave his yearly progress report
Adam Young is a Staff Writer for the Middlesboro Daily News. He can be contacted by e-mail at ayoung@middlesborodailynews.com.
National Park Buy The Gap ?? Haha,
what in the world would the park want with that lame duck place..
Shaker70
P.S. The City could Sell the 41 International truck that is rusting down in the Streets to pay the water Bill (If the city Own the truck)
I use to stop by the gap Offten. But Everything got to Costing to much. what you pay for a bowl of beans in the gap you can buy a steak elswere. and what you pay for a nights lodging. you can Almost stay Two Nights in Middlesboro.with a pool. Only Three Miles away and they Charge More tax's then the Place is worth now.
The White Lightning festival will be a good thing For the Gap. BUT If the Business Owners Don't quit Charging Dubble For food & Motel and their other Services It will be a flop..