The Wedowee Town Council met on Tuesday and heard the latest concerns over the Wedowee Utilities Board.
Wedowee Utilities Board chairman Barry Waldrep presented an update on the board's financials. Waldrep said a new system has been put in place and that he hopes to have more information for a report to the council next month.
The council appoints members to the utilities board, and Mayor Tim Coe was recently removed from the board following possible financial management issues discovered in an audit of the utility. The utility board subsequently fired part-time bookkeeper Brenda Boone.
SEE ALSO: Wedowee mayor removed from utility board after $1.5 million in alleged losses, unpaid taxes reported
Waldrep presented the board's proposal to restore the original language of the utility board's certificate of incorporation, stating that no council member or the mayor will serve on the utility board. The council approved that measure.
Waldrep has been working to obtain documentation and present information to the public in the spirit of transparency as a new utility board sorts out details. The Alabama Attorney General's Office is investigating the utility, although no criminal charges or allegations have been made.
Waldrep revealed new issues discovered at Tuesday's council meeting. At least one utility board employee has been paying a small premium for family health insurance coverage, and despite an increase in the premium, the employee has not paid the increased amount. Waldrep said no one discovered that the employee's payroll had never been adjusted, costing the utility thousands.
Another issue arose when Waldrep said he was unable to locate loan information regarding ownership of the town's lagoon. The town owns the lagoon, but the utility pays for the loan. Waldrep said the board needs to find out when the loan funds were deposited. The newly discovered issues led Waldrep to suggest an official operating agreement between the town and the utility.
"My opinion is on anything that both entities are involved in, there needs to be operating agreements or whatever the case may be, so everyone can keep track of the finances," Waldrep said.
SEE ALSO: 'Months away from bankruptcy': Wedowee Utilities Board reviews audit findings, makes policy changes
The utility board building houses utility employees and the Wedowee Police Department. In reviewing real estate, the board was unable to find a lease agreement between the police department and the utility board. Mayor Tim Coe said he is unaware of an agreement. Waldrep suggested establishing an agreement for liability purposes.
The utility board is also working to sort out documentation referencing employee cell phones and wireless plans. The town council will assess how to move forward with the utility board on cell phone plans at a later work session.
Waldrep said he is unable to find out who should be considered responsible for not filing Wedowee Utilities Board payroll taxes for 2023, 2024 and 2025. Waldrep said he isn't sure whether the taxes were paid, but returns weren't filed for those three years.
"The thing is, I can't make anybody be responsible for telling who is in charge of doing it," said Waldrep. "I mean, this to me is a huge conflict in town and utility board. I mean, all we can do is call the IRS and deal with it. It's just, why did this happen?"
Councilman Jerry Huddleston asked Coe when he was with the board, "Who was the boss?"
Coe confirmed former board employee Brenda Boone oversaw the office.
"So, Brenda was the boss? Because she adamantly stated in that first meeting she had no authority," Huddleston said.
"What she stated was she was a contracted part-time employee that did payroll that she did not make any decisions," Waldrep replied.
Huddleston then replied, "She made the decision not to file for three years in a row. At least you know who the boss was now."
Waldrep said as chairman, he is taking on the responsibility of protecting assets. He said he will continue to ensure financial oversight and ethical compliance.
Huddleston added that there has been discussion surrounding Christmas bonuses. While there is no record of those bonuses being approved, the checks were signed by Coe and Boone. One full-time employee and one part-time employee received $9,500 bonuses. Two full-time employees received $5,500 bonuses and all other full-time employees received $3,000 bonuses.
Coe said the bonuses were a part of the budget.
A memorandum of understanding (MOU) between the town and the water board was presented to clarify the separation of duties. The MOU specifies that the two entities go out to bid together on health insurance, telephone service and other items only to receive discounts. The council unanimously approved the MOU.
In other business, Huddleston presented the council with a copy of a previous audit report on the Town of Wedowee. After reviewing the report, he recommended that all departments submit their financial information electronically to enable accountability and transparency. Huddleston said that although the report suggested council oversight over finances, he has not seen evidence of that. He suggested that documentation be presented to the board showing all checks and amounts issued by city departments.
The council discussed a measure to compile a notebook of bank statements for the council's use. The measure will be discussed further at the council's next work session.
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