Neosho City Manager Jan Blase has acknowledged that the city used a state loan provided to the city solely for the construction of new hangars at the airport a couple years ago to finance its operations.
Blase also acknowledged that the city nonetheless still faces cash-flow situation and at times is “scrambling” to make payroll.
The city received a loan of $895,100 from the Missouri Department of Transportation in 2008 to construct the hangars. The city did not put that loan into its a separate restricted fund, but instead put it into its general fund that it uses to finance its operations.
“I felt morally obligated to make payroll and pay our bills,” he told the Globe this afternoon.
He initially said he thought the move was legal, although when later pressed about how that could be possible when the city’s contract with MoDOT required it to be used for the hangars, he said he was “no lawyer” but that he thought it “was the right thing to do”.
The Neosho City Council is expected to meet in an emergency session Saturday to discuss personnel issues.
Members of the council have declined to give specifics, citing the personnel exemptions.
Blase, though, said he suspected it would center on him. He said he did not plan to attend the meeting.
Local News
<img src=" http://www.joplinglobeonline.com/images/zope/new.gif" border=0> Neosho city manager says city used loan money to pay bills
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