During the Jackson City Council meeting of June 28, two ordinances were introduced concerning the use of rents and rights of way as a way to bolster general fund revenues.
If the plan were to be used, a total of about $800,000 would go to the general fund with a big chunk of that money going to fund the operations of the Jackson Police Department.
At that time, Councilwoman Marva Colby said the city was told by state auditors to not use that method of funding. She felt the city has been overcharging electric customers and using the resulting money to fund other things.
The two ordinances, one approving additional appropriations in the amount of $800,000 in the Electric Utility Reserve Fund and the second to move that money into the general fund were read and received a first reading that night.
The ordinances came for a third and final reading and a vote during the meeting of Monday, July 26.
The idea of using rents and rights of way funds is a controversial one. While the issue was questioned by state auditors during the special audit of 2002, inquiries by Jackson Law Director Jack Detty have resulted in what he calls a "non-response" from the state. He feels the practice is legal as does Mayor Randy Heath.
When the two issues came to a third and final vote July 26, both were adopted with only Colby voting "No." She told The Telegram the city had been told to not use the practice and believes surplus money in the electric fund belongs to the people and should be returned to them instead of being used for other purposes.
