Former homeowner's unpaid bill costs purchaser $1,500 to reconnect

Dwayne Hodges got a rude shock when he purchased a new home in Bell Buckle. After paying his earnest money and signing the contract, he discovered that there was no water. Due to unpaid utility bills, the tap had been repossessed from the previous owner and it was going to cost Hodges $2,500 to reconnect.

"Is there anything you can do," he asked Bell Buckle Board of Mayor and Aldermen at its Tuesday night meeting, "to keep this from happening to someone else?"

The town had agreed to cut his tap fee to $1,500 because of a clerical error on the town's web site that has since been corrected, but denied Hodges' request to prorate the fee over six months by paying $300 down and adding $200 to his regular water bill until it was paid off.

Alderman Frank Reagor and Alderwomen Annie Rooney and Jenny Hunt expressed concerns over the possibility of setting a precedent that could hurt the town later when someone else requested the tap fee be split into separate payments.

"It's bad business," said Hunt. "I'm sorry, Mr. Hodges."

Alderman James Anderson argued for Hodges, saying he felt the board made good decisions and would continue to do so every time the request came up.

"In my opinion, one of the advantages to living in a small town rather than a big town is that we can be flexible," said Anderson. "I don't think Mr. Hodges was in the wrong. I think the [previous] property owner was in the wrong and I think we can be flexible."

Hodges wasn't as upset over the payment schedule being turned down as he was about he possibility of the same thing happening to someone else.

"It doesn't show up if you do a title search," he said. "If there's not a lien on the property, you can't tell until you come in to turn your water on."

Rooney said she thought the real estate agent would have to tell the buyer under full disclosure laws but no one present could verify that. Hodges said the cost of hiring an attorney to try and recover the money from the previous owner would cost more than he was owed -- if he cold get the money at all.

"You can't get blood from a turnip," he said.

The member of the board said they weren't sure if there was anything the town could do to notify prospective buyers unless they came in and asked, but Mayor Dennis Webb said he would consult with Don Darden of the University of Tennessee's Municipal Technical Advisory Service to see what options there might be.

Loan paid

The board also approved a motion to pay off the town's Rural Development loan. The money to pay the unpaid principal, $218,293, will come from surplus funds in the Water Board checking account and from a certificate of deposit that matures this month.

Anderson told the board the unless interest rates on CDs drastically increase over coming years, the board can save approximately $180,000 with the move. He said he arrived at the figures after comparing the interest earned from the CD and the interest paid on the 33 years remaining on the note.

Hunt said the excess money in the checking account had hurt the town on several occasions when it came to applying for grants, especially ones concerning the Webb Basin.

Other business

The board voted to initiate a project putting solar-powered lighting on the road in front of Webb School. The project will be completely funded through a federal safety grant and will increase visibility for the safety of those crossing the road. The maintenance would be minimal, said Hunt, and Webb would consider sharing the maintenance fees with the town.

Residents of Fosterville Road approached the board about the possibility of extending the water line all the way to the county line, adding about a mile and a half of pipe. The existing line is currently being replaced. Mayor Dennis Webb told them it was not likely to happen at this time because the town made a decision not to add any new water lines and because the cost would be prohibitive. Hunt said the recent decision to increase the Fosterville line from 4 to 6 inches may be postponed because the price of the pipe would nearly double. She said she was exploring the possibility of not bidding out the installation of the meters, but doing it in-house, which would negate some of the cost difference between the pipes.