CullmanTimes.com - Cullman, Alabama

Top News

Discussion

July 24, 2008

Board seeks loan to cover debts

By Patrick McCreless

PATRICKM@CULLMANTIMES.COM

Due to the loss in revenue caused by last year’s record drought, the Hanceville Water and Sewer Board will request a $100,000 loan from Merchant’s Bank to cover various debts.

During a special meeting Tuesday the board agreed to ask for the loan, which if approved, would be added to an existing $300,000 Merchant Bank loan. The board acquired that loan several months ago to cover the balance for a tertiary filter for the Hanceville Wastewater Treatment Plant.

Sally Alexander, co-manager of the Hanceville Water and Sewer Board, said the $100,000 would specifically cover two bond payments, which are due every February and August. The board shares one bond with the city, while the other covers the cost of 13 miles of recently replaced water lines.

“We can easily add $100,000 to our existing loan at Merchant’s Bank to pay off those two,” Alexander said.

Alexander told the board the loan would fill the gap in revenue created by last year’s extreme drought.

“In 2007, our well reached a level of 9 feet and we had to reach an agreement with the city of Cullman to purchase water,” Alexander said.

Typically, Hanceville’s well holds around 90 feet of water.

Alexander said the water purchases, which ended about a month ago, totaled $264,000.

“For a small system, that was a tremendous amount of debt,” Alexander said.

A secondary impact of the drought was Hanceville’s search for another water source. Alexander said the preliminary work and assessment on the new water source cost $223,000.

Though the board does not have the funds now to cover the bond debts, Alexander said that would soon change. She said apart from last year, the board’s water revenue is typically solid.

“Normally, we put in $20,000 to $25,000 in savings every month,” Alexander said. “This will be the first month that we will not have to buy water from Cullman and we will be able to put money back into our savings.”

Text Only
Top News
  • JUSTIN MARCELL BROWN Man charged with trafficking pot

    Suspicious traffic complaints to the Cullman Narcotics Enforcement Team (CNET) from citizens about the area around Highway 91 in Colony led to the arrest of a local man Tuesday morning.

    February 8, 2012 1 Photo

  • Two women injured in accident in Dodge City

    Two Cullman women were transported by separate helicopters to UAB Tuesday to receive medical treatment following a two-vehicle accident at Dodge City.

    February 7, 2012

  • CANDY RGB PHILLIPS.jpg Candy Phillips Thomas seeking probate judge seat

    Longtime public school teacher Candy Phillips Thomas has announced she will seek the Republican nomination for Cullman County probate judge in the March 13 primary election.

    February 7, 2012 1 Photo

  • 3 arrested in connection with church burglaries

    Three people were arrested over the weekend in connection with a church burglary that took place at Seventh Street Baptist Church in June of last year.
    Eric McMillian turned himself into the Cullman Police Department Saturday and was charged with burglary and receiving stolen property according to officials. A female juvenile was also taken into custody.

    February 7, 2012

  • Hanceville church vandalized; 'Hail Satan' written in cross' place

    Hanceville Police are working on several leads to find out who vandalized Center Hill Baptist Church sometime between Thursday night and the early morning Friday.

    February 6, 2012

  • UPDATED: Woman injured over weekend dies; autopsy shows injuries consistent with fall

    A state forensics autopsy has concluded that a Cullman woman who died due to head trauma over the weekend, after being found unresponsive in the parking lot of her apartment complex Saturday morning, was likely caused by a fall.

    February 6, 2012

  • Drinkard Development Drinkard announces new retail development

    Retail in south Cullman is about to expand again, with the announcement of Drinkard Development’s new Willkommen Center.

    February 5, 2012 1 Photo

  • Public trust at stake in 2012 legislative session

    It’s tough to carry the momentum from an unprecedented wave of election-season support through a full term in office, especially in a year that will ask members of Alabama’s legislative class of 2010 — an effective Republican supermajority with built-in party consensus — to tackle some of the most challenging big-picture issues the state has faced in decades.

    February 5, 2012

  • Lawmakers look at harsh cuts, place hope on private sector growth Lawmakers look at harsh cuts, place hope on private sector growth

    Tuesday will mark the beginning of what is expected to be a trying, and likely contentious, journey through the murky pits of state funding procedures.

    February 5, 2012 1 Photo

  • Police investigate injury to Cullman woman

    Cullman police aren’t yet sure how a local woman, currently hospitalized, ended up lying unresponsive next to her car over the weekend, but they are cautiously treating the incident as though violence could have been involved.

    February 4, 2012