VIDALIA — One Vidalia alderman said he doesn’t think the city is out of compliance with its ordinance governing the spending of hydroelectric royalties, while another said he was “uncomfortable on a personal level” with past practices.

The issue of how the city spends royalties from the Sidney A. Murray Hydroelectric Station was raised at the Louisiana State Bond Commission Thursday after commission members questioned how the royalties were legally governed.

The ordinance governing royalties, adopted in 1998, requires royalties first be set aside to pay for the city’s participation in the hydroelectric station. The second purpose allowed is for the satisfaction of any debt requirements incurred in financing of capital improvements.

The ordinance requires that the town have two public hearings to discuss any projects in which surplus revenue from the hydroelectric fund will be used. The projects will also have to be published, and the ordinance says the public hearing will include “public input concerning possible alternative uses of surplus revenues.”

The ordinance also allows for the rebate to customers of the city’s electric system. In the ordering of priorities within the ordinance, the rebate comes before the provision allowing for public hearings.

“As I read the ordinance, a rebate has to be specifically discussed, and that hasn’t been done,” Louisiana State Treasurer John Kennedy said Thursday after the bond commission hearing.

“However the city decides to spend the money is its business, but my job is to make sure the law is complied with, and that ordinance has not been complied with in my opinions. That is the straight up law, and if you don’t like the law, you can change it, but until then, it is the law.”

Alderman Jon Betts said he has in the past asked about having public hearings about the hydroelectric funds. Betts said he was told at one point the public hearings on the city budget were sufficient.

“I didn’t feel what we did was adequate,” Betts said.

“When I asked about that, I was told at our meeting that what we complied (with the ordinance). Whether I disagreed or agreed with it, that is what happened. As far as comfortability with it, I would have had public hearings on it.”

Betts said even if the public hearings aren’t required, it doesn’t take much effort to have one.

“Any time you are going to inform public, you can do more than what is required,” he said.

Alderman Vernon Stevens said the city has had a public hearing to discuss the rebates before, though it has been several years. Stevens said he did not think the city has been out of compliance with the ordinance.

“We have never been written up (by auditors) for being out of compliance with the ordinance,” he said.

Alderman Ricky Knapp said he would have to review the ordinance before he commented.

“But we definitely need to (have the hearing) if that is what the ordinance says,” he said.

Alderwoman Mo Saunders and Alderman Tron McCoy could not be reached for comment.