Newspaper Page Text
WEDNESDAY, JULY 28, 2010
THE JACKSON HERALD
PAGE 9A
Hoschton pays development company $247,029
Move follows Supreme Court ruling
BY KERRI TESTEMENT
HOSCHTON HAS written a check to
a development company after the Georgia
Supreme Court ruled against the city in a legal
battle over a sewer pump station.
The city issued a check on July 14 for
$247,029 to Horizon Communities, LLC —
which had built a new sewer pump station in
the Brook Glen subdivision that was capable
of handling wastewater from other develop
ments.
The check includes the $191,631 that the
courts said Hoschton owed the development
company, $38,340 in legal fees and $17,058
in interest.
The Supreme Court ruled on July 12 that
Hoschton “acted in bad faith’’ for refusing to
pay Horizon for the sewer system improve
ment.
Jackson County Superior Court Judge
Currie Mingledorff had also ruled against the
city in May 2009 and ordered the city to pay
the development company for the sewer pump
station, its legal fees and interest equaling
$38.38 a day until the judgment was satisfied.
Hoschton appealed that lower court’s deci
sion to the state’s Supreme Court, which heard
oral arguments from attorneys representing
the city and Horizon in June.
In its ruling, the Supreme Court said
Horizon has “a clear legal right to reimburse
ment, a right violated by the city’s steadfast
refusal to reimburse Horizon.’’
If Hoschton wanted the Georgia Supreme
Court to reconsider its decision, it had until
Thursday to file that motion. The payment to
Horizon on July 14 ends the legal battle on
the issue.
To pay the development company, Hoschton
tapped into a portion of a $746,300 legal
settlement with its former engineer, whom the
city sued over faulty design of its wastewater
treatment plant.
Some of that money had been earmarked
to pay one of two state loans that Hoschton
received to expand its sewer treatment facil
ity.
Hoschton was given a loan from the Georgia
Environmental Facilities Authority (GEFA)
totaling $3 million in 2004 to fund the initial
expansion at the wastewater treatment plant,
and a second state loan of $3.05 million in
2006 to fund another round of improvements
after the city learned that its new facility was
inoperable.
The city was slated to start paying that sec
ond GEFA loan in 2010, but the state agency
later said Hoschton didn’t have to start repay
ing that loan because it was still using it for
improvements at the facility.
Had the city started payment of the second
GEFA loan — which was initially budgeted
to begin in February — Hoschton would have
been paying $22,000 a month, according to
city clerk Cindy George. The six-month delay
has saved the city $132,000.
George said she’s now taking the steps to
get the final withdrawals from the second
GEFA loan, although she doesn’t know how
long that process will take.
Once Hoschton stops withdrawing from
that account, it’ll soon have to start making
loan payments.
The 2009 legal settlement with its former
engineer — Armentrout Roebuck Matheny
Consulting Group — is helping Hoschton
offset its costs, George said.
“The Armentrout settlement is our cushion,
as all of this shakes out,’’ she said.
Hoschton officials also said Tuesday in a
statement sent to newspapers that the city had
money available from a $500,000 project that
was once planned at the wastewater treatment
plant. That project was scraped after the city
received second opinions recommending that
the project wasn’t necessary.
The original 2010 budget adopted by the
previous council had $300,000 cash-on-hand
stemming from the Armentrout settlement that
was earmarked to pay for half of the project,
according to the statement. The additional
money was slated to come from the second
GEFA loan.
When the wastewater treatment plant proj
ect wasn’t necessary, city officials set aside the
cash from the Armentrout settlement to fund
future operations, according to the statement.
Mayor Erma Denney said in the statement
that “in the end we used one lawsuit to pay
for another.’’
“Thankfully we had the foresight to hold
these funds in reserve,’’ she said in the state
ment.
BUDGET REPORTS
On Thursday, the city issued a press release
announcing its payment to Horizon and its
second quarter financial results.
“The administration’s conservative fiscal
policy made it possible for the city to ful
fill this obligation immediately,’’ the release
stated. “This cash was slated for future debt
payments, and will need to be replenished.’’
Overall, the financial reports do show a bet
ter fiscal picture thus far in 2010 than during
the same period in 2009.
In its water and sewer fund, expenses
topped $299,200 during the first two quarters
(January through June) for 2010 — compared
to $375,100 for the same period in 2009.
Hoschton had estimated that expenses would
top $539,800 for the first two quarters of
2010.
Also in its water and sewer fund, income
for the first two quarters for 2010 totaled
$342,180 — compared to $376,170 for the
same period in 2009. However, the city had
budgeted revenue to top almost $575,700 in
the first two quarters of 2010.
The bottom line leaves Hoschton with
$42,900 above its expenses — compared to
$ 1,080 after the first two quarters of 2009.
The profit and loss reports prepared by the
city, however, don’t show the principal pay
ments for its first GEFA loan.
George had previously said that the reports
only have to show the loans’ principal pay
ments.
Hoschton is paying the monthly $18,000
principal amount for the first GEFA loan,
George said. The financial reports do show
interest totaling $39,700 for that loan during
the first two quarters of 2010.
In the general fund, Hoschton has reduced
its expenses by 61 percent from 2009.
Income in the general fund topped $274,150
for the first two quarters of 2010 — while
expenses reached $109,000. The difference
leaves Hoschton with a $165,150 surplus.
During the same period in 2009, income
reached $270,800, while expenses were
$281,000 — leaving a $10,200 shortfall.
For its 2010 budget, Hoschton had antici
pated that income would total $281,800 for
the first two quarters of the year, with expens
es reaching $162,000.
But in order to reach that surplus, Hoschton
has had to cut some services and contract
other services.
Hoschton closed its police department in
January, contracted the management of its
wastewater treatment plant with the Jackson
County Water and Sewerage Authority, and
hired McFarland Dyer and Associates to han
dle its planning and development projects on
an as-needed basis after eliminating a position
for a city planner.
Meanwhile, the city has depended on
law enforcement services from the Jackson
County Sheriff’s Office, with assistance from
the Braselton Police Department. The neigh
boring town is also providing an as-needed
code enforcement officer in an agreement
between the cities.
In a statement issued on Thursday, Denney
thanked those groups, along with the West
Jackson Fire Department, in helping Hoschton
“function efficiently and effectively.’’
Hoschton mayor reports city’s greater financial stability
BYBENMUNRO
MIDWAY THROUGH the
budget year, Hoschton is run
ning in the black for expenses
in the general fund, and water
and sewer fund, according to
mayor Erma Denney.
“We spent less than we
budgeted, and we made a
little more than we thought
we would,’’ Denney said at
a recent meeting. “So every
thing is going wonderful for
us. It is not a huge amount,
but it is on the positive side.”
Denney said the current bud
get does not include antici
pated reimbursements from
GEFA for a few water and
sewer projects.
Denney also noted that
Hoschton’s sewer system is
in compliance, despite the
city not going forth with
the Siemens project, a near-
$500,000 waste-water treat
ment improvement plan
approved by the former coun
cil. The Jackson County Water
and Sewerage Authority,
which now runs Hoschton’s
water system, said the project
wasn’t necessary.
“This is what we were look
ing for,” Denney said of the
city’s current financial state.
“Pretty soon, we’ll have to
start working on the 2011
budget, but we now have a
little more information to go
on.”
In other business conducted
at the July 12 Hoschton meet
ing, the council:
•agreed to relinquish its
local issuing authority (LIA)
rights. By doing so, the EPD
will be responsible for polic
ing soil erosion and sedimen
tation issues and fining those
not in compliance. Forfeiting
its LIA rights won’t prevent
Hoschton from renewing
them in the future if the city
so wishes.
•agreed to assess a $100
fine for those paying their
business license fees after Jan.
15 in place of the current $19
penalty. Business licenses are
$100, but many owners aren’t
paying them on time. Also,
any home-based businesses
face an additional $45 fee
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(Located past HOME DEPOT on the left, next to Christian Bookstore)
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FREE CHEESE DIP WITH
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after Jan. 15. Those licenses
cost $45. “Maybe it will get
everybody’s attention,” coun-
cilwoman Theresa Kenerly
said. “We don’t have the time
or staff to go out and hunt
people down.”
•signed an intergovernmen
tal agreement with Jackson
County for Special Purpose
Local Option Sales Tax
(SPLOST) and an agreement
with the rest of the munici
palities. Hoschton will desig
nate 75 percent of its money
to pay off the principal on its
GEFA loan for its wastewater
treatment plant, five percent
to parks and recreation and 20
percent to roads. Over a six-
year period, Hoschton will
receive a projected $699,464
for water and sewer proj
ects, $186,413 for road proj
ects and $46,603 for parks
and recreation. The city also
authorized the mayor to sign
off on House Bill 489, an
intergovernmental agreement
between the cities and the
county for their service deliv
ery strategy.
•met in closed session for
35 minutes.
PUBLIC HEARING NOTICE
The City of Jefferson and Jackson County are
considering applying to the Georgia Department of
Community Affairs (DCA) for an Employee Incentive
Program Grant of up to $300,000. These funds must
generally be used for the following purpose:
1. to benefit low- and moderate-income persons; or
2. to aid in the prevention or elimination of slums or
blight; or
3. to meet other community development needs
having a particular urgency because existing
conditions pose a serious and immediate threat to
the health or welfare of the community where other
financial resources are not available to meet such
needs. The applicant must certify and the Georgia
DCA must concur that such conditions exist.
The activities for which these EIP funds may be used are
in the area of economic development. More specific
details regarding eligible activities, plans to assist
displaced persons and the estimated amount of funds
proposed to be used for activities to benefit low- and
moderate-income persons, and the rating system will be
provided at a public hearing which will be held at the
Jefferson Civic Center, 65 Kissam Street, Jefferson,
Georgia 30549 on Monday, August 9, 2010 at 6:00 p.m.
The purpose of this hearing will be to inform citizens
regarding the development of the application and to
review progress on the previous CDBG/EIP grant(s) (if
applicable). Persons with special needs relating to
handicapped accessibility or foreign language shall
contact Jefferson City Manager, John Ward at (706)
367-5121 prior to August 9, 2010. This person can be
located at 147 Athens Street, Jefferson, Georgia 30549
between the hours of 9:00am and 5:00pm, Monday
through Friday, except holidays.
Georgia’s outdoor burn ban
in effect through Sept. 30
THE STATE’S outdoor
burn ban in 54 Georgia
counties started on Saturday,
and will end on Thursday,
Sept. 30.
The Georgia Environ
mental Protection Division’s
(EPD) open burning ban pro
hibits citizens and businesses
from burning yard and land
clearing debris. The rule is
in addition to the year-round
state ban on the burning of
household garbage.
The burn ban includes sev
eral counties in Northeast
Georgia, including Jackson,
Banks, Barrow and Madison
counties.
Citizens may access more
information on the open
burning ban by calling the
EPD district office in their
area. For the Northeast
Georgia district office in
Athens, call 706-369-6376.
Small businesses may
obtain help and informa
tion by calling EPD’s Small
Business Environmental
Assistance Program toll-free
at 877-427-6255.
For more information on
the open burning ban and
exemptions to the rule, visit
www.georgiaair.org and
click on “Hot Topics” to
visit the open burning ban
page.
For more information
about alternatives to burn
ing — such as composting
and chipping — call Joe
Dunlop at the Department of
Community Affairs at 404-
679-1598 or email at joe.
dunlop@dca.ga.gov, or call
Roy Edwards at Georgia’s
Department of Natural
Resource’s Sustainability
Division at 404-657-7449 or
email him at roy.edwards@
gadnr.org.
Debris can also be hauled
to a commercial process
ing/grinding/composting
operation or to an inert or
construction and demoli
tion landfill. For a list of
area landfills, call EPD’s
Solid Waste Management
Program at 404-362-2692.
Food bank hours listed
THE HOURS of operation of the Banks-Jackson Emergency
Food Bank, located at 111 Atlanta Avenue, Commerce, are
from 9:30 a.m. to 1:30 p.m. every Monday, Wednesday and
Friday. The phone number is 706-335-5143.
The food bank provides one-time emergency food supplies
for individuals and families referred by churches or social
service groups.
The Humane Society of
Jackson County presents
PETS
OF THE
WEEK
For a complete listing of our animals available
for adoption, please visit our website at www.hsic.com.
Humane Society of Jackson County photographs animals available for adoption located at Commerce
Veterinary Hospital and Jefferson Veterinary Hospital. These animals are not part of HSJC foster care.
Please call Commerce Veterinary Hospital at
706-335-5111 for the pets below:
Please Don’t Litter, Spay and Neuter
Time is of the ESSENCE
Hurry to adopt one of these great pets. Please call to spare a life - call to adopt or
become a foster home. For more information, call 706-367-1111 or see a full list of our
pets on Petfinder.com under shelter and rescue groups. Adoption fee is $100.00 per
dog and $100.00 per cat - this includes their spay/neuter and all up-to-date shots.
‘Pet of the Week’ is made possible by these community-minded sponsors:
Jackson
County
Animal
Control
A magazine celebrating the people,
places and lifestyles of Jackson County.
www. living/'ackson. com
www.FunopolisFamilvFunCenter.com
Located at 40155 Hwy. 441 Sin Commerce -
south of exit 149 off 1-85 past Walmart
‘ c . North Georgia
* Pet Cremations
v
Jackson County's
! i‘,.. Only Pet Crematory
* www.naaD6lcrenialions.com
* (770)540-2078
www.petmechanics.org
706-654-3291
ADVERTISE
your business
here and show your
support for the Humane
Society!
Call 706-367-1111