Council OKs water bond issue

Weirton City Council passed the final reading of Ordinance No. 1661 authorizing the acquisition and construction of additions, betterments and improvements to the existing Public Water Works System of the City of Weirton and the financing of the cost through the issuance by the city in aggregate principal amount of water revenue bond, but council was not happy with the sweep resolution mandating automatic withdraws for bond issue repayments.

By a 5-1 vote, council members voted in favor of authorizing $2,496,208 in bond debt, with Councilman David Dalrymple voting against the ordinance and all resolutions regarding the disinfection byproducts project.

During the public hearing portion of the meeting regarding the bond issue, no residents came forward to comment on the matter.

However, council expressed displeasure before a vote on a resolution establishing electronic repayment of the debt to the West Virginia Municipal Bond Commission. The resolution authorizes the commission to automatically withdraw payments monthly from the city's account.

Ward 3 Councilman Fred Marsh suggested the city set up a separate account specifically for repaying the loan. John Stump of Steptoe and Johnson, bond counsel for the city, told council members the state would not allow that.

"I've made this argument many times with no success," Stump said.

City Manager Gary DuFour said the resolution gives the state "unfettered access" to the city's funds. He said in the event that a mistake would be made and funds would be overdrawn, it would be a headache for the city to wait for the correction.

Stump said he understood council's concerns, but added "whoever has the gold, makes the rules" and there have been issues with other Public Service Commissions and entities going default on their payments.

"I'm in favor of electronic payments," said Finance Director Tom Maher Jr. "However I am against it being taken as opposed to being given."

Maher noted the city would be given a few days' notice before the funds are electronically withdrawn.

Ward 4 Councilman George Ash moved to table the resolution until council members could gather more information, with Councilman George Kondik seconding. Ward 7 Councilman Max Fijewski asked if the funds would be jeopardized if the resolution were to be tabled or defeated with Stump answering "yes," convincing Kondik to withdraw his second in protest.

The resolution was put to a roll call vote, which led to a 3-3 tie - with Ward 1 Councilman Ronnie Jones, Fijewski and Kondik voting in favor of the resolution, and Marsh, Ash and Dalrymple voting against it.

Mayor Mark Harris was then put in the position to break the tie and cast the deciding vote.

"I'm not jeopardizing free money, so I'm voting yes," Harris said, later noting if the resolution had not passed it would slow down the process and the citizens of Weirton would then be forced to pay 100 percent of the project and water bills could then be doubled in order to have enough funds to pay for it.

Later in the meeting when discussing the department head reports, Marsh explained his vote for "no" was based solely on the payment process. He said he would like to know why the state can mandate what account in which funds can be taken.

Stump provided council members with a phone number for Chris Jarrett, executive director of the West Virginia Water Development Authority.

"I would encourage every member of council to call Mr. Jarrett and express their opinions," he said.

(Dickson can be contacted at adickson@weirtondailytimes.com)