Same song, second verse. The State of Tennessee has again rejected HOPE Center's latest financial plan that was submitted to the State of Tennessee's Division of Bond Finance. Mary-Margaret Collier, Assistant Secretary with the Tennessee Local Development Authority of the State Comptroller's Office issued the letter to Ms. Marie Burzler, Chairman of the Board, and Ms. Barbara Gray, Executive Director of the HOPE Center on May 16. Since an audit of the Center's finances by the State in February, the State has advised the Center's directors and management to show proof that the Center is financially viable.

On Thursday, May 9, the Center's Board met to approve a plan of action and at that time heard a report that the Center was working through its financial problems. The Center's auditor, Charles McLain said the Center is operating at a financial surplus during the current fiscal year. Ms. Burzler said the Center was able to achieve the surplus by reducing a number of employees and reducing benefits, which affected the monthly financials by $30,000.

Ms. Collier's letter states that the April 30, 2002 financial report and the plan developed by the Center's board of directors (during the May 9 meeting) are unacceptable as proof that the Center is financially viable. "Your proposal does not provide a cash flow for determining when the HOPE Center will become current with its payments nor a specific date by which the Center will achieve its goal. We have further concerns based on the April financial statements that show a negative cash balance of -$138,589.49 and (accounts) payables overdue greater than 30 days totaling $10,557.94."

The letter states that Center's check in the amount of $23,472.44 to the Tennessee Local Development Authority, for a pooled loan payment, had been returned because of insufficient funds. That check was a partial payment on a loan that is in arrears. A second check totaling $25,114.88 for the remaining arrearage was to be written on May 15.

"We expected these payments to be included as part of your (financial) plan. Since that time the first check has been returned for insufficient funds. We have not received another check to replace that check although Ms. (Jennifer) Waldrup, promised to mail the replacement check to TLDA on May 15, 2002. Ms. (Barbara) Gray also has informed us that we would not receive the second check for $25,114.88 until June 1," wrote Ms. Collier to Ms. Burzler and Ms. Gray and copied to all the Center's board members, the Tennessee Attorney General, and Department of Mental Retardation.

"None of these facts or actions give us any assurance that the Center can become current and remain economically viable over the remaining life of the loan. Therefore, on behalf of the Tennessee Local Development Authority, I am notifying you that your plan has been rejected. The Center must provide us with a viable plan by next Friday, May 24, 2002; it must be a plan that the Center can adhere to and specifically provide the amounts that the Center will pay to the TLDA on certain dates to bring the loan current. No further extensions will be granted," wrote Ms. Collier.

The Center is scheduled to make monthly payments in the amount of $7,803.74 to the Board of Bond Finance. The Center is more than $32,000 in arrears on the payments, according to Ms. Collier.

Last month, Ms. Collier made a visit the Center's board to discuss the serious nature of the finances. She informed the board that a loan extension had been denied after it was learned that the Center owed more than $400,000 in federal income tax (payroll taxes), penalties and interest. The Federal government filed a second mortgage on the Center's real estate to secure that claim.
 

 
Weakley County Commissioners voted 19 to 1 Monday to ask Governor Don Sundquist to place a state prison in the county. The proposed prison would provide 440 jobs with an annual payroll of $10.8 million. The resolution noted Weakley County has lost many jobs in the past eight years. The discussed site is between Dresden and Gleason on State Route 22. The lone vote against the prison was Wendell Verdell from Gleason, who had promised his constituents he would vote as such.

During a special referendum in Carroll County on July 10, 2001, voters rejected the same prison proposal by a vote of 4,023 to 2,414. A total of 11,362 registered votes did not vote. Only two of 24 precincts voted favorably for the prison. Both precincts were in McKenzie. Since that vote, Carroll County has sustained a loss of more than 500 jobs when Murray Outdoor Products closed earlier this year.
 

In their regular session on Tuesday, May 14, members of the Huntingdon Town Council voted unanimously to allow the Public Safety Director to dispose of seized weapons by trading them for new SWAT (special weapons and tactics) weapons. The police department had previously gained court approval for the transaction, said Vice-Mayor Steve Bunn. The Huntingdon Police Department under the direction of Public Safety Officer Joe Parker has stepped up their tactical gear and weaponry since the September 11 attacks on the United States.

Centerstage Drama Camp at the Dixie Carter Performing Arts and Academic Enrichment Center

Council members approved unanimously a proposal by Kim Easley for the use of the Dixie Carter Performing Arts and Academic Enrichment Center in conducting a summer drama camp. Ms. Easley, who currently teaches drama classes at the center, will be the instructor for the one-week camp. Tuition for the camp is expected to be $125.00 to $150.00. All proceeds above the instructors' fees miscellaneous expenses will benefit the Dixie Carter Performing Arts and Academic Enrichment Center. Possible dates for the event include June 24 - June 28 or July 22 - 26 from 9:00 a.m. until noon.

In other business, the Council:

• Approved a request by the Carroll County Fire Department District I for the use of both fields at Edwards Park.
• Approved a request from the West Tennessee Bandits for use of the Kelley Sports Complex in a USSSA qualifying event to be held June 21-23. The Bandits had also requested permission to charge admission for the event at which they expect to host 12 to 20 teams. As policies governing the use of parks prohibit charging admission unless tournament rules specify such a charge, board members agreed the Bandits may seek donations at the gate in lieu of admission.

Phone (731) 352-3323 or Fax (731) 352-3322
washburn@mckenziebanner.com