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Sunday, December 15, 2013

City of Alexander agenda deceptively slim

With no mention of lawsuits, ordinances or a budget on the City of Alexander's agenda for Monday night's meeting it would appear to be the makings of a quick and dull meeting. But, residents may want to attend this one anyway.

The agenda does include City Attorney Carla Miller. It is assumed she will be providing an update on the city's repossessed fire truck.

The latest in that saga is the fire truck has allegedly been sold for about $75,000 by the owner of the lease-purchase agreement, Paul Anthony Graver. It was sold on November 14 after he was ordered three times by two judges to return the truck to the city.

The dispute is over a 1999 Freightliner fire truck. The truck was repossessed in October while sitting in a restaurant parking lot. It was then taken to a lot in Memphis, Tennessee.

The City of Alexander entered into a lease-purchase agreement with First Government Lease Company and its owner Paul Anthony Graver in May, 2008. Graver lives in Chicago and his business is located in Northfield, Illinois.

The amount of the lease-purchase was $50,000 for the truck and an additional $24,325 in interest. The agreement is for seven years at $884 per month.

Apparently, Graver bundled that loan with two other loans he had with the city and sold them to First State Bank in Oklahoma. Alexander Mayor Michelle Hobbs stopped making the monthly payments in March of this year claiming the lease-purchase agreement for the fire truck was illegal under the Arkansas Constitution, which restricts how cities can take on interest-paying debt.

Graver bought back the lease-purchase agreement for the fire truck from First State Bank October 10, then filed a lawsuit that same day in Illinois court. The fire truck was then repossessed October 11.

Also on the agenda is a report from the finance committee. Council members have been holding special meetings to hammer out the 2014 budget.

The next city council meeting is Monday, December 16, at 6PM in city hall.


4 comments:

  1. So.. Now that they don't have a fire truck to pay for. Why not fix the roads in St. Joesph Glen Subdivision, or exempt us from paying taxes to the city of Alexander. Just a suggestion.

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    1. Paying off loans, or any other expense, has nothing to do with repairing streets. Municipalities and counties receive monthly payments from the state's fuel tax. The cut is based on population. That revenue must also be kept in a separate bank account and can only be spent for street related items, such as street repair, street lights, etc..

      In the case of St. Joseph Glen, however, your streets have not been turned over to the city. If you have any complaints go to your subdivision group and ask why they are not being maintained.

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    2. Alex good answer ! why should they not hold the people who put the POA into effect, and require the problems be brought to court and resolved, so the issues they have can be put in the open view, and maybe X Mayor Johnson could be brought in, and her kickback from the developer, who built it, exposed. Possible?

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