By JOY HAMPTON
May 06, 2008 05:13 pm
—
Rogers County commissioners voted Monday to move $666,666 from a certificate of deposit to cover an outstanding paving bill in District 3.
District 1 County Commissioner Dan DeLozier was the solitary “nay” vote in Board action.
The certificate of deposit is held by the County Treasurer’s office.
Cathy Baker, county treasurer, cautioned commissioners that the action may not be legal.
The fund transfer is needed to cover the shortage created by money management problems in District 3 under Commissioner Kirt Thacker’s charge.
Thacker said Monday he is short $600,000 in his one-cent road tax account and wants to borrow from future funds to pay an outstanding asphalt debt owed to APAC Oklahoma Inc.
Legal council, Assistant District Attorney Barry Farbro is investigating the legality of cashing that CD early. He said he received the written request for an opinion last week and was still gathering facts.
“I couldn’t recommend releasing the full amount,” said Farbro. He suggested contacting the taxpayer (Latshaw Drilling) to get a waiver or release. Last August, the tax commission and the state auditor’s office advised holding the funds until the tax protest period had passed. Farbro said that period is three years.
Farbro told commissioners in the case of an emergency the Board could authorize the release of Thacker’s share.
“I need more than my share,” said Thacker. He turned to County Purchasing Agent Marilynn Gibson for confirmation.
“Around $600,000 give or take,” said Gibson.
Thacker said he needed all three shares, $666,666 but that he would pay it back.
Baker asked the Board to consider other options.
“Let’s pretend the money wasn’t there, what would the county do?” said Baker. “Why not borrow from each other? If you gentlemen have the money, why not spend it?”
Thacker said it wasn’t on this week’s agenda to borrow money from the other districts. He made a motion to move all three commissioners’ shares of money from the CD so that he could pay his asphalt bill.
District 2 Commissioner Mike Helm seconded the motion.
DeLozier voted “nay.” The motion passed 2-1.
DeLozier has the funds in his one-cent account to loan Thacker the money D3 needs.
Asked whether he would share the money as a short term loan, DeLozier said, “Yes. I would have. It had to be paid this fiscal year.”
DeLozier has made it clear in recent weeks that he will not give away any money due to his district, but in the case of an emergency where Rogers County becomes liable, he would have made a short term loan to D3.
District Attorney Gene Haynes said his office was still investigating the matter and “any ancillary legal issues concerning their opinion.” He said the Board had been asked to table the matter for a week, but Monday’s vote allows the funds to be transferred from the CD to District 3’s access.
Baker has been in negotiation with RCB Bank. Cashing in the CD early could cost the County thousands of dollars in penalties and in future earnings potential. She said the bank would allow for a grace period in case the money could be replaced immediately. It might be possible to waive the penalty.
Neither Thacker nor Helm asked about additional cost to the county for cashing the CD early prior to voting for the measure.
Helm said his vote was simply to “force the hand of the DA” to obtain a legal opinion.
“Kirt may still be in position to ask Danny,” said Helm. “I think the chairman can go over there and negotiate with RCB.”
At first, Thacker did not want to comment. Later, he reconsidered.
“Some mistakes have been made and corrected,” said Thacker. “And I guarantee you, I’ll leave the County better than I found it.”
When Thacker asked to borrow the funds from the other commissioners last month, they suggested the District Attorney’s office look into the legality of using the funds in the Latshaw CD.
SEE RELATED STORY D3DollarDilemma
Copyright © 1999-2008 cnhi, inc.