City leaders in Reeds Spring say the were blindsided when they were informed that the city owes the Missouri Department of Transportation $54,000.
City Administrator Bill Bell says the debt dates back to an agreement that a previous administration made when the municipality filed for bankruptcy in 2003.
According to the bankruptcy agreement, MoDOT had a general unsecured claim for transportation fees for the relocation of some utility lines that were relocated by MoDOT when the new portion of Missouri 13 was relocated.
The lump sum payment was due at the end of the year, and MoDOT called the loan. Bell says current city leaders were never informed of the debt by previous administrations and they will only have $2,807 in the general fund project fund for 2014.
"Apparently, the previous mayor and board never discussed it with any new members," he said. "The city doesn’t have the same attorney as we did then, and it was never discussed."
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