An attorney representing Wilcox County State Bank has notified the city of Rhine in a letter dated December 12, 2011 that a loan in the amount of $200,000.00 is delinquent and must be paid within 10 days.
The loan was initiated to pay expenses for calendar year 2010 regarding a new water/sewage facility prior to receipt of a guaranteed USDA loan. Disbursements included professional fees in the amount of $110,650.00 to Rindt McDuff and Asssociates, Inc.; land purchase for 18.61 acres in the amount of $43,631.02 to Duane Conley ($2,344.49 per acre); land purchase for 33.9 acres in the amount of $41,272.81 to Robert Lowe and Roger Laster ($1,217.49 per acre); survey fees in the amount of $3,221.75 to Mike Moore; and attorney fees in the amount of $1,060.00 to Joseph I. Marchant. Disbursements totaled $199,835.58. The disbursements began on January 7, 2011 and concluded on August 25, 2011.
Questions arose over the loan at an October 21, 2011 city council meeting concerning a resolution authorizing the issuance of the loan.
The resolution was dated June 16, 2010 and signed by mayor Carter Clements and attested by former city secretary June Sheffield for the City of Rhine. The resolution specified a loan would be issued by Wilcox County State Bank with an interest rate of no more than 5%, calculated on an actual 360 day basis, payable 12 months after closing.
Former city council members Wayne Hilliard and Dena Barrows questioned the resolution and the issuance of the loan at the October 21 council meeting. Barrows stated that city council did not vote on nor approve the resolution. Barrows stated that she served on the city council for the past four years and had no knowledge of the loan.
There were no minutes or records available to the new city council members from prior city council meetings to validate any questions or inquiries regarding the loan. Current and new council members Eddie Cravey and Allen Parrish questioned Clements regarding the loan during the first regular council meeting of 2012 that was held on Thursday, January 5, 2012.
Clements informed the new council members that it was no secret regarding the loan and that the former city council members knew about the loan. Discussion was held and council members questioned attorney Marchant regarding prior minutes. Marchant told council that he has not personally researched prior minutes regarding the loan and resolution.
Former city councilperson Kaye Spires, who was in attendance in the audience, spoke to the council regarding the loan and informed the council members she had knowledge from phone calls she received while on council to approve the payment of invoices over the phone.
Attorney Marchant advised the council of several options regarding the loan that is past due including an option to sell the land that was purchased by funds from the loan. Questions were asked by council members concerning the no collateral loan. Clearly frustrated, councilman Parrish stated, “We’ve only been in here 5 days and we’ve been handed this!” Cravey stated, “That’s Carter’s business. He borrowed that money.”
The new council members including Cravey, Parrish, Jo Ann Hamilton and Jacqueline Clements asked Marchant to research the minutes and to research the law concerning the loan and to provide information at the next meeting.
In other business, the city contracted with Terry Hardeman to perform water tests for the city. Council heard concerns regarding the city cemetery and voted to have additional lighting placed in the cemetery along with cameras, as there have been damages to the cemetery and items stolen. Council voted to have the city audit put up for bids and advertised in The Dodge County News.
Finally, council voted not to move forward with the proposed water/sewage facility and return the grant funds to the state.
Where is Carter and does he have the money to give back since Cravey says that he borrowed it? Why put this on one man to take the blame, if the money is not available to be returned to the state and by the way this is one way to keep the state out of a small town's business and that is to not get money from them.
This is a laughing matter about a council who is suppose to be running a city but no one seems to know what is going on and the sad part about is, that it's all about money and the residents have to bear the consequences of their council action. With the bottom line being for them to return the grant funds to the state that was for the proposed water/sewage facility.
Forgive me folks for laughing at your small towns but I am a just a big city girl who has never heard of such mess. I hope these adults get things straighten out before the next generation come along to take their place or else things will continue to be in a mess.
Is he implying that Carter "borrowed" the funds for his personal use???? Sounds like the whole city is corrupt..excuse me..I mean the TOP officials in the city. Maybe Cravey's activities -(as in Kip)- was to help make the money to pay back the loan b 4 it came due?
Something really SMELLS bad in Rhine.