Council Meeting Minutes 07-08-2025

CITY OF SOUTHSIDE
COUNTY OF ETOWAH
STATE OF ALABAMA

The City Council of the City of Southside convened in a regular meeting in Council Chambers at City Hall on Tuesday, July 8, 2025. Prior notice of this meeting was given in compliance with Resolution No. 0-035-2005 of the City of Southside, Alabama, and the Alabama Open Meetings Act. Mayor Dana Snyder called the meeting to order at 5:00 p.m., with Councilman Keith Clay leading in prayer.

The following were present: Mayor Dana Snyder, Council Members: Keith Clay, John Hatley, Don Steward, Joseph Hutchins, and Danny Garnett. With a quorum present, the meeting was called to order for business transactions.

Mayor Snyder asked the council if there were any corrections or additions to the minutes for the regular council meeting held on June 24, 2025. Don Steward motioned to approve the minutes, and Keith Clay seconded the motion. The Roll Call Vote was ALL AYES. The motion was approved.

Ms. Marsheila Anderson was on the agenda by submitting a request. She wanted to make the Mayor and Council, as well as the public aware of a planned block-party on River Oak Drive South, to be held Saturday, July 19, 2025 from 12-3 p.m., with a rain date of July 20, 2025 from 3-6 p.m. Ms. Anderson stated this would be a family friendly event, and stated that she had put out flyers in the neighborhood to encourage participation. She stated that residents participating were encouraged to furnish sealed, packaged snacks and drinks, and set up family-oriented yard games or contests. She requested no pets, and parents would need to supervise their minor children.

At 5:06, Mayor Snyder then opened the Public Hearing regarding the re-zoning of the property at 4979 Green Valley Rd from part AG (agriculture), Part B-2 (general business) to the entire property being B-2. The request was submitted by the current owners of the property, the Mid Central District of the NAL Conference of the United Methodist Church. The church is seeking the re-zoning of the property to facilitate its sale to local attorney, Jared Dunn, who would like to put his law office there, and possibly offer office space rental to other professionals. This rezoning petition was approved by the City of Southside Planning Commission at a Public Hearing on June 19, 2025. The mayor asked if there were any questions from the Council. Councilman Steward inquired if this was the old church building, and Jared Dunn, who was in attendance, responded that it was. There were no questions from the audience. The mayor stated that this rezoning was on the agenda to be voted on tonight.
The Public Hearing was closed at 5:11, and the council proceeded to its work session.

Councilman Garnett was recognized to present his Emergency Fund Ordinance for its required second reading by the council. He stated that he had discussed with Councilman Clay, Councilman Hutchins, and Councilman Steward the specifics of the Ordinance, and he recommends the council approve the Ordinance as it is written with the stated funding, and any future issues to increase funding can be addressed at a future date. The mayor asked if there was any discussion. Councilman Clay stated that he thinks this is a good idea.

Mayor Snyder presented proposed Financial Policies for discussion. She stated that when Councilman Garnett brought the emergency fund to the table, she had done some more research on the financial policies and found that emergency fund language generally refers to financial policies in their verbiage, and had combined the two into one document. This document has restrictions and funding requirements for the disaster recovery fund proposed by Councilman Garnett, and it also adopts City of Southside Financial Policies formally, which the mayor stated that the city is already doing, it is just not an adopted formal policy. She stated that it is just a sound, legally compliant framework in financial management for disaster preparedness, and safeguards the emergency fund for state and federal assistance, which would allow for FEMA funds for anything declared an emergency. She asked the council to open a discussion on this. Councilman Clay stated that he was against the financial policies when they were originally presented, and is still not in favor, and that the first time he heard about financial policies was at a meeting with Investment Banking Firm Frazier-Lanier, when they were presenting a plan to the council that involved an 8 million dollar bond issue proposal, and having financial policies would improve the city’s credit rating for securing that debt. He stated that he does not think that is a good reason to adopt financial policies, except for the emergency fund. He stated that he feels if it were for legal issues or transparency, it should have been done in year 1, not year 5. The mayor stated that in every audit that she had been involved with, both as a council member and as mayor, the auditor had made notes that the city did not have adopted financial policies. (both the previous auditor and the new ones) She said that even after review of the proposed Emergency fund Ordinance, they said it would still be noted that there are no adopted financial policies. She stated the policies lay out clear principles for budgeting, debt, and emergency reserve funds. She stated that she agrees with Councilman Garnett’s emergency disaster fund, but the city also has monies that need to be kept in reserve, with policies that state how that money can be spent going forward.

The mayor asked the council if anyone else had any discussion. Councilman Garnett stated that he would prefer that the Emergency Funding Ordinance be considered separately from the financial policies. He stated that in the past 20 years, he has not heard an annual auditor’s report that the city was not following accepted governmental accounting practices. He stated that he had not heard until the most recent audit that there were no written policies. He stated that there was nothing prohibiting the council from creating an additional fund as an undesignated reserve. He stated that he had found that the general rule was that municipalities should maintain an undesignated reserve between 5% and 10% of its annual budget in his research of other bond companies. He stated that this means that the council could create that undesignated reserve without adopting any formal policies, because the city’s annual audits show no discrepancies, that the city is in full compliance with all government and accounting regulations, so he feels that the city does have financial policies, and if the council wants to create another fund to protect the city to be able to fund operations in an emergency, you can create that with another Ordinance, and that is what he would prefer to see. He stated that he thinks there is no reason for financial policies, that the city has been following the same unwritten policies as long as he has been around, and it would give the option to create other funds, designate them like they want to designate them, and contribute what they wish to each fund.

The mayor stated that nobody had claimed the city was not following its financial policies, but rather that the council should formally adopt the financial policies that the city follows as written policies. She stated that it is noted every year in the audits that the city does not have adopted financial policies. She stated that all she is asking is for the council to formally adopt the policies the city is currently using. She stated that the council had been provided with a summary of the proposed policies, with an explanation of what they are and what they do. She then went through the explanation of the proposed policies. She stated that the proposed financial policy reflects her belief that cities should plan ahead and not just react, and the policies set expectations of how public funds are handled. She stated that it is common practice for a city to have written financial policies, and all the proposed policies are doing is laying out how the city operates financially.

Councilman Steward stated that he had been asked how the city handles grant money. He said that if there were written financial policies, he could provide an exact answer as to how grant monies are handled. He posed the question to City Attorney Richard Rhea: Do we have anything in writing of the city’s financial policies? Councilman Steward then stated that he understands that the city complies with expected accounting procedures, but does the city have a policy in writing anywhere? Counselor Rhea stated that he is not privy to all the city’s books; however, the city would have a pattern in practice of how financial matters are handled historically that you could present, however, it is his experience that auditors do point out if you do not have written adopted financial policies, and it is his experience that investment bankers offering bond issues do encourage written policies, which help a credit rating, enabling an entity to get better rates in the borrowing process. His experience is that if you have a discussed and debated on policy in place for anything, police, fire, or streets, it makes actions more legally defensible, to a point, that even if they are bad policies, the fact that the municipality has been through the process of adopting policies, it makes the actions of a municipality, hypothetically, standing in front of a federal judge, more defensible. He is not privy to past policies, but since Councilman Steward asked, he believes that past practices do not necessarily create policies; rather, they establish patterns in practice, which are still referable. Councilman Steward then asked if this offered an opportunity to deviate from the prior methods and do something different? If there were written policies in place, would there be a set policy that the action was required to follow?” Counselor Rhea stated that yes, a written policy would force things to go through a set process, but it does not prohibit the making of changes. Councilman Steward stated that he thinks the council should pass the Emergency Fund Ordinance. He also thinks there should be something in place to cover the city in the event of an emergency that isn’t necessarily a declared state of emergency.

Councilman Garnett stated that he had looked over prior audits, and nowhere had the city been criticized for not having oversight or control. He stated that it is the greatest liability of the council to be reviewing financials every month, to ensure they are spending money under the approved budget, and also to question any irregularities. He stated that he had seen companies with great policies, but still failed in procedure. He stated that it was not the case here. Mayor Snyder stated that adopted financial policies would hold everyone involved accountable to the same standard. Councilman Garnett stated that under a ruling by the Alabama Supreme Court, with or without adopted financial policies, it still boils down to the council being held responsible for the financial affairs of the municipality. Mayor Snyder agreed and said the people of the city need to know how the finances operate, so they can hold the council accountable. Councilman Clay stated that the council has been transparent, all meetings are open to the public, and any time there is a grant, that information is open to the public. The mayor stated that the policies were not about transparency, but they were about accountability.

Councilman Garnett stated that he found it very coincidental that when this first came up, it was at a meeting with Frazier-Lanier, talking about an 8-million-dollar loan, and these policies and procedures were provided as part of that meeting, which is what makes him very leery. The mayor stated they were present at that meeting because the council had been talking about the sports complex. She stated that she had Frazier Lanier come in to talk about bond money. She stated that she brought Frazier Lanier in so the council could make a decision on the possibility of a bond, and the financial policies were presented at that meeting after recommendation from the auditors. Councilman Clay stated again that the meeting with Frazier Lanier was the first time he had heard of financial policies. Mayor Snyder said it was, and Frazier Lanier did say the city needed to adopt financial policies; however, going to the bond market to secure a loan would be a separate vote for the council than approving formal financial policies. She stated that the bond market was not part of the request to pass financial policies. Councilman Garnett stated that the city is already employing sound financial policies according to the most recent audit.

Councilman Steward asked if the city had policies and procedures in place, and had an emergency requiring them to go to the bond market immediately, it would get the city a better credit rating. He stated that a council (this or next) would still have to vote to go into the bond market to secure money. he also stated that the city auditors had assisted in the writing of the policies and procedures and had stated that the city should adopt formal written financial policies. He then repeated that yes, the Frazier Lanier people had said it would get a better credit rating, resulting in a better interest rate, but he re-stated that nobody was trying to go to the bond market and get 8 million dollars at this time, either, and that he would not support going to the bond market at this time. He stated that he feels like the council is turning a blind eye to recommendations from both the current and previous auditors. He stated that he only has 6 meetings left on the council, and he will not vote for a bond issue, but he would vote to adopt formal written financial policies to ensure a better credit rating.

Councilman Hutchins asked if the main concern for Councilman Clay and Councilman Garnett was a potential bond. Councilman Clay stated that it was one of his concerns, also he was also concerned about is that the reason for doing it. He stated that they had 5 years and months before an election, they should not adopt new policies, he feels that it is driven by Frazier Lanier’s suggestion for a better credit rating. He stated that there is money sitting in CDs that could be used in emergencies.

Mayor Snyder stated that the financial policies were not brought up in year one, due to there not being a finance director yet, and there was not one until the former City Clerk/Treasurer of 32 years, Cynthia Osborne, who had done a tremendous job and a tremendous amount of work, announced she was retiring. The Finance Director position was created and filled, then there was a transition to a new, updated software, and transfer of data, before there was time to consider anything regarding financial policies. There was discussion back and forth regarding council approval of the hiring of a financial director. Councilman Garnett pointed out the recent tornado outbreak in surrounding areas and noted it was a catalyst for the need for the emergency fund Ordinance. He cited the tornado that hit the south end of the city in 2018, and the struggle to fund the recovery effort until help from FEMA was provided. Councilman Hutchins stated that he had been contacted and asked if the need for financial policies was related to the desire to secure a bond. He stated that he would not support going to the bond market this late in the term, and he mentioned the courtesy extended by the prior administration in leaving some decisions for this one relating to the waterfront property, and stated that he feels that at this point, this administration should do the same. He stated that at the time the financial policies were initially proposed, it was last September or October of 2024, and the city had 2.6 million dollars sitting in an account, which was essentially in a reserve. He stated that the council and finance director had discussed paying off all the city’s debt, except for the fire hall, which would have left 1.2 million dollars. The discussion at that time was to establish a 15% reserve fund, which is designated and is outlined in the proposed financial policies, which is very similar to Councilman Garnett’s proposed Ordinance. This would have been the 1.2 million dollars. The council decided not to pay off all the debt, and 2 loans were paid off. In February, the finance director brought up the fact that there were still monies sitting in low-interest-earning accounts, and the council approved for them to be put in higher-yield CDs. He stated that he had brought up financial policies at that time, and had felt like 15% was a good starting point, but 20% would be better. This would have addressed what Councilman Garnett has presented, which would be more restricted. He stated that he feels what Councilman Garnett is proposing is good; however, the city needs additional funds in case of a situation that does not meet all the restrictions of Councilman Garnett’s Ordinance. Councilman Garnett’s emergency fund would not cover payroll, taxes, insurance, and operating expenses for the city; it would only cover immediate needs in the first 72 hours of a declared disaster. Councilman Hutchins feels like the city needs additional reserve funds to provide for the city’s operating costs in an emergency, maybe a 2-month reserve. He thinks the part of the financial policies that specifies the fund balance is a very good thing. He reiterated that he is not looking to go after a bond right now; however, he thinks the overall financial policies give a road map to follow, which could be changed if needed. He thinks that if the entirety of the financial policies can’t be passed, at least the emergency Ordinance and the reserve fund portion of the proposed financial policies should be passed. He thinks there needs to be something in addition to Councilman Garnett’s emergency Ordinance that is less restrictive that needs to be passed that could support the city’s expenses for at least 2 months in an emergency. There was more discussion of undesignated funds and criteria regarding their use.

Councilman Steward asked if everyone could explain the specifics of the procedures for the revenue job.

The mayor asked that the Emergency Ordinance and the Financial Policies be put on the upcoming work session agenda for discussion. She feels that if the reason for not passing financial policies is the closeness of the upcoming election, there is no difference in passing the Emergency Ordinance, either, and the two need further discussion.

Councilman Garnett requested that the Emergency Ordinance be voted on separately tonight. Citing information from the National Weather Service, predicting an active weather pattern for the area.

The mayor explained that the financial policy Ordinance would take care of the 300,000 in Councilman Garnett’s emergency fund, the undesignated reserve, and would also provide the recommended, formally adopted financial policies.

Councilman Garnett stated that the emergency Ordinance was a stand-alone Ordinance based on State Law.

The mayor asked if there was any other discussion. There was none

The council moved to the New Business portion of the agenda.

Southside Athletic Foundation has asked if the city wishes to continue its sponsorship of the football stadium jumbo Tron. The mayor stated that the banner for this year would be $5,000. This was a non-budgeted item, due to the sign not being in existence yet at the beginning of the fiscal year. Councilman Don Steward made a motion to approve the sponsorship. Joseph Hutchins provided a second. The Roll Call Vote was ALL AYES, and the sponsorship was approved.

The Ordinance to rezone the property at 4979 Green Valley Road to B-2 General Business was presented. This was previously approved by the planning commission, and there was a Public Hearing regarding this earlier in this meeting. Councilman Hutchins thanked Jarred Dunn for wanting to bring his law office to Southside, and made a motion to approve the Ordinance. A second was provided by Councilman Garnett. The Roll Call Vote was ALL AYES. The Ordinance was approved.

In Old Business:

Mayor Snyder stated that Councilman Garnett had done the first reading of the Ordinance to establish a restricted emergency fund, with a designated minimum balance at the last council meeting. Tonight, will be its second reading. Mayor Snyder suggested that there be more discussion due to the proximity of the upcoming election. Councilman Garnett made a motion to approve the Ordinance tonight; Councilman Clay provided a second. Roll Call Vote Was ALL AYES. The Ordinance was approved.

At this time, Councilman Steward made a statement: He said that last fall these same things were presented, and all that was needed was some discussion and adjustment. He stated that the council has waited until right before the election to discuss it. He stated that it was needed by the city, and he was going to vote yes, but he wants people to understand that things are being held back for the wrong reason.

Mayor Snyder also stated that she was going to vote yes, but she was going to reiterate what Councilman Steward had said, and that for a strong foundation, everyone on the council should be held accountable by policies and procedures adopted by the council, and since the election keeps being mentioned, that everyone should remember that passing the financial policies was the foundation for a good financial future for the city.

Councilman Garnett voted yes and thinks this is a good day for Southside and its financial future. He complimented Finance Director, Nickie Pylant, on her management and investment of the city’s funds, and on keeping the funds working for the city.

The vote was unanimous.
The mayor stated that she did want to discuss the financial policies at the work session on July 14.

Mayor Snyder made the following announcements:

The next Planning Commission meeting is scheduled for July 14, 2025, at 6:00 pm in Council Chambers at City of Southside City Hall.

The next City Council Meeting is scheduled for July 22, 2025, at 5:00 p.m. in Council Chambers at City of Southside City Hall.

The mayor asked the council individually if they had any comments.

Keith Clay Stated that he would be out of town for the work session. He has been in touch with school and Board of Education officials, and they are excited about the prospect of some type of tennis and pickleball courts, and maybe they could attend.

The mayor stated that they were all supposed to attend the Wednesday Work session.

John Hatley: none

Joseph Hutchins: Stated that obviously a heated discussion has taken place, and with what we see online and in the general public, it is the council’s responsibility to be respectful. He stated that each member of the council feels strongly about issues, and it is good that they can sit and discuss and disagree. However, it needs to remain professional. He said he was sorry to everyone who was in attendance and watching online. He stated that the way things are handled in the council meetings dictates the way they are handled in public. He stated that everyone here is neighbors, and we need to do a better job, even in disagreements, to be respectful so it doesn’t come across negatively.

Danny Garnett: Stated that he thinks tonight’s discussion is what the Council and Mayor are supposed to do. He feels they did this in a professional manner, and everyone has a stance on everything. He said he felt no offense from anyone; they just had differences of opinion, and he felt that the council had to show the ability to think for themselves, and tonight was an example of that.

Don Steward: Southside Resident Courtney Washington is one of 8 women nationwide competing for Team USA Obstacle Course Racing in Sweden at the world championships. There is a fundraiser for her at the Rail, and flyers about it are in the lobby. If you see her or her family, wish her luck. Then he stated that the council is all elected by the citizens of Southside, and they are elected to do what they feel is best. The discussion that just took place there was strong feelings. I didn’t get what I felt was needed, but I voted for what we know needs to take place, and it is a step forward. Hopefully, the council can fine-tune the recovery fund, and maybe the auditors can come re-explain the need for financial policies.

The mayor then asked if anyone in the audience had anything to say.

Finance Director Nickie Pylant was recognized and took the podium.

Director Pylant started by stating that the auditor did not say that the city doesn’t have policies and procedures; it was stated that we do not have formal, adopted written policies and procedures. The way the policies work at this time is, the auditor comes to the finance director, asks how she does various things, then the auditor verifies that is how the finances are being handled. She is, again, just stating that there are no written, formal policies.

Second, the city has money sitting in a paving account right now that the director would like to put in another CD. The only way she can do so is with council approval. There is $590,000 currently in the account, and it will not be used for at least 6 months. She would like to move $575,000. Danny Garnett made a motion to approve the Finance Director to move the money to a CD. Joseph Hutchins provided a second. Roll Call Vote was ALL AYES. The move of money to a CD was approved.

The Last Item presented by Director Pylant was that, when this year’s budget was discussed and approved, all the SSUT tax money (internet sales) was directed to an overfunded account for the waterfront property loan. The loan was 1.5 million, the remaining balance is just over 1 million, with 2.5 million in the account. This is part of the money planned to be used for the emergency fund. 714,000 was budgeted in this year’s operating budget for expenditures. She asks for the council to approve this money to be directed into a general fund savings account, so it is earning interest, and she has access to pull it into the general fund for operating expenses. The funds were originally directed by council instruction only on 09-11-2019 to go into the GO2019 debt account. Director Pylant would like to direct the funds into a general fund savings account going forward. Don Steward made a motion to move the funds. Joseph Hutchins provided a second. The Roll Call Vote was ALL AYES. The request was approved.

The mayor then asked if anyone else in attendance had anything else:

Southside Resident, Anita Hestor, was recognized and stated that she had spent over 30 years in management with large corporations (Honda, Bridgestone), and they all have policies and procedures for everything they do, and it is all documented. It is a living document, which is easily changed, unlike having to re-create something. She does not understand why it got so emotional trying to adopt policies. She stated that it is easily amended. It is part of a normal business model. She also asked where to find a list of candidates. It should be on the City Website. She then asked how the city is set up as far as “districts”. The mayor explained that the City of Southside, due to its size, is at large, and not one council member is “over” a particular department. Each new election, as long as the city is under 12,000 people, it remains at large. Councilman Garnett explained that the council has no authority over city employees; that is one of the duties of the mayor as CEO of the city. The council approves financial matters.

An out-of-town visitor stated that one of the biggest secrets in Alabama is the date of the election. It is August 26, 2025

A new Southside resident, who has moved here from Louisiana, was recognized and pointed out several differences about the form of Government in Alabama. He also stated that in the 6 months that he has been a resident, he loves everything about Southside, and he is glad to be here

Southside Resident, Tim Fuhrman, was recognized, and asked how many residents there were currently in Southside. the mayor answered about 9500 at the last census. He then asked why Southside only had 5 council members. The Mayor stated that it is dictated by state law, relative to population.

The question was asked, due to comments on Facebook, is there an issue with the Johnson’s deal? Is this true? The mayor stated that the entire deal was pending on the sale of the property, and all she knows is that the probate hearing is scheduled for August 11, 2025.

The mayor thanked everyone for being in attendance.

Don Steward made a motion to adjourn. Keith Clay provided a second. The meeting adjourned at 6:20 P.M.

SIGNED:

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Dana Snyder, Mayor
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Cindy Beshears, Acting City Clerk