Council Discusses Water and Sewer Authority Reserve Fund

The Clayton City Council discusses the Clayton Rabun County Water and Sewer Authority’s reserve fund balance last night.

The focus of the discussion was whether or not the authority’s reserve is at the correct amount.

City Manager Cissy Henry says that from 2003 to 2012, the City paid the authority 1.1 million dollars with an agreement that 80% of that will stay in the reserve fund but that the numbers do not reflect that amount.

According to City Attorney Mitch Baker, that wording in the current contract states that 80% minus the cost of repairs has to stay in the reserve, which has possibly led to a misunderstanding between the Clayton City Council and the Water and Sewer Authority.

“What the authority I believe has done is they’ve interpreted that to mean that the 20% that doesn’t have to stay there is they are free to use that however they want and so they’ve taken that 20% out and used it for other purposes.”

After the city spent much time discussing the Water and Sewer Authority’s reserve fund balance, the city council voted unanimously to send a proposal of cost plus two thousand dollars to the water and sewer authority.

The proposal states that the city does not affirm or deny that the current balance in the authority’s reserve fund is the correct amount. City Attorney Mitch Baker said that wording could open up a discussion with the water and sewer authority regarding what the correct amount is, and what has happened to funds the city feels should still be in the authority’s reserve.

“I think there should be a letter that probably goes to them that says, ‘we’ve had ample discussion and debate over how much is supposed to be in there. Tell us what your position is, tell us what you’ve used the money for, and tell us what you anticipate using the money for.’ ”

All of this follows a veto by Mayor David Phillips of a proposal that was voted upon and approved by the council at their September meeting.