The City of Russellville received some good news recently as a settlement with Wachovia financial services wraps up and two checks totaling $43,820 are written to the city.
City Clerk Bob Riggs explains that the money received is actually back interest the city should have gotten from $442,000 the bank held relating to a large loan taken out in 1998 for water and sewer. According to Riggs, from 1998 to 2010, the city received zero interest, which they should have. Riggs said the city questioned the bank from the beginning but were told the way the money was set up they would get no interest.
“They were wrong,” said Riggs.
Legal action was taken against Wachovia from people that had been hurt by their investments and that is the reason the city became involved, said Riggs. The city was notified four months ago asking if they wanted to take part in the class action suit. City Attorney Neil Kerr provided all the necessary paper work to include Russellville.
“This is just another blessing on the City of Russellville,” said Russellville Mayor Mark Stratton. “When you try to be good stewards of your money, God will repay you, and that’s just how I look at things,” said Stratton.
The city received a check for $24,460 and one for $19,360.
“It was a surprise,” said clerk Riggs.
Stratton said he wasn’t sure what the city would do with the money at this time but thought it could be used on some needed equipment.
“We had a truck go down on us a little while back and we found a good one to replace it with. Now this money comes along around the same time. It just goes to show you once again how blessed we are,” Stratton said.
Back when we weren’t receiving any income on this were told that was the way it was set up and qwe wouldn’t receive anything but it was being done and that was wrong.
We got a notice if we wanted to participate we could about four months ago. We dodnt know if there would be anything for sure. You hear that you could. We were assuming because we knew we were not getting anything back on that money.
Kerr did at the request of the city send the paper work in.