Witkowski says it will take the village 17 to 27 months to catch up on its debts
By WILLIAM F. AST III - H-P Staff Writer
Published: Friday, March 12, 2010 1:10 PM EST
STEVENSVILLE - The Stevensville Village Council on Thursday made numerous budget adjustments that take into account an alleged embezzlement of $290,140, and other bills that hadn't been budgeted for.
The adjustments include budgeting $17,050 to pay for the village's now-abandoned suit against the Lake Michigan Shoreline Water and Sewage Treatment Authority. Previously no money had been budgeted for this item.
The council is limiting itself to paying no more than $35,000 a month for bills until the arrearage is paid off. The council on Thursday approved paying $34,526 on bills current and past.
"We're keeping tight to that budget, aren't we?" Trustee Don Meyer said.
"Yes, we are," council President Lori Gibson replied.
Former interim manager Bret Witkowski said it will take from 17 to 27 months for the village to catch up on what it owes. The 17 months will be "if the insurance policy kicks in" on some of the lost funds, he told the council.
Former village manager Todd Gardner has pleaded not guilty in U.S. District Court in Grand Rapids to charges that he took the funds. He was manager from April 2006 until May 2009.
Gardner's jury trial has been set to start April 27. In response to a question from the audience, Gibson said she has no plans to attend the trial as she'd have to take vacation days from her job to do so. But Trustee Pat Arter said she hopes to go.
The village has a schedule to pay off the unpaid bills. But Witkowski has said for months that a much bigger problem is the $691,435 in loans that the village's Downtown Development Authority owes for buying lots to expand the downtown.
The council voted 4-1 to extend its revolving line of credit on those loans to Dec. 27 at 1st Source Bank. Currently the village is making interest payments only.
Meyer cast the lone dissenting vote on the extension.
"I voted 'no' on the loan extensions because I do have a contention with the payment of interest on those loans," Meyer said after the meeting. "I think that there is an issue of blame shared in part by council but also by the bank, that there was equal opportunity for them to understand the loans weren't proper, and until that's resolved I prefer that we just not pay at all."
Voting in favor were Gibson, Arter, and trustees Steve Slavicek and Kim Peters. Trustees Ken Hansen and Don Schlipp were absent.
The council also adopted some policies demanded by the Michigan Department of Treasury, such as one on electronic transfers of funds.
This was the first council meeting for new Village Manager Derek Perry. He's also deputy city manager and public works director for St. Joseph, and will work part time at Stevensville.
"You've got a good staff now," Witkowski told the council. "It's been a long nine months - I'm not going to lie to you - knowing what we've known since August or September."
Witkowksi is also Berrien County treasurer.
After the council did not extend Gardner's contract, it quickly became apparent the financial books were in disarray.
The village hired a certified public accountant to reconstruct the books, and the state treasury department then performed an audit of the previous two fiscal years. The audit said money had been taken.
Gibson thanked Witkowski for his help, as well as others. She said once news of the problem broke, St. Joseph City Manager Frank Walsh was "the very first caller" and offered any help he could.
wast@TheH-P.com
