A prominent Fayette business owner who formerly served as both alderman and mayor disagrees with the city’s consideration to remove a series of sinking funds. J. B. Waggoner advocated against the removal of the sinking fund system, especially with regard to the electric fund, during the council’s regular meeting on March 2.

The Fayette City Council in February opened discussions about the removal of some or all of the city’s nine sinking funds which contain more than $3.3 million.

The change would overhaul the city’s budget process and potentially allow monies currently sequestered for specific uses to be placed in the city’s general revenue fund. Nathan Nicholaus, the city’s attorney, said during the council’s previous meeting that sinking funds act as limitations placed by former city councils on future councils. “Councils from the past were trying to set aside money that you all, as the new council, wouldn’t be able to touch. They can’t do that.”

In addition, former interim city administrator, John Hancock, suggested that the city moves from a system of sinking funds to a more modern budgetary process.

Waggoner disagreed with that assessment. “I would ask you for an extra measure of caution,” he said. “And maybe ask why they set up these proprietary funds.”

While the accounts have long been referred to as “sinking funds,” Waggoner said he preferred to call them “proprietary” funds. “Sinking funds sound like something you lose. A proprietary fund is put there for a purpose,” he said.

Waggoner said that when the funds were put into place the city’s finances were a mess, and this system solved a lot of problems. He also warned of eliminating the city’s electric sinking fund, which had $2,370,988.51 as of Jan. 31.

“I can guarantee you have every bit of that liability in that distribution system,” he said. Liabilities include new lines, poles, and transformers. He also revived the idea of adding a second transformer to the north side of town that could be turned on in the event a disaster took out the city’s main transformer. The idea came about during an electrical study that was performed in the early 2000s when Waggoner served on the council.

“What if we had a tornado roll through there? We wouldn’t be able to turn the town on for weeks,” he said.

Danny Dougherty, the city’s public works director, agreed with Waggoner, specifically with regard to the electric fund. “I don’t think we should touch that for anything but electrical,” he said.

Dougherty outlined a series of immediate expenditures projected for the aging system such as new linemen, tree trimming around electric lines, and meter and pole replacements. “I would hate to touch any of that reserve electrical fund because we’re going to need it,” he said.

Northwest Ward Alderman Pat Roll took it a step further when he suggested the city seriously consider selling the electric department. The city has been unable to attract new linemen because it can’t match the pay rates of other nearby communities and co-ops.

Grafton Cook, Southwest Ward Alderman, motioned for the city to order a study of the entire electrical system. “It would educate the council and the city on exactly what the condition of our grid is.” The measure was given unanimous approval.