SILVERHILL, Ala. — The Silverhill Town Council voted down a measure at its meeting on Monday to refund overpayment of a collected tobacco tax from 2006.

Ferris Youmans, former president and majority stockholder of HB Paulk Grocery Company of Opp, made the appeal to Town Council members on Monday, stating that an overpayment of $4,848.48 was made to the town through Alatax, now known as RDS, which contracts to collect taxes for the town.

The overpayment, which was made because of a mistake made by an HB Paulk employee, was discovered by another employee in 2008, Youmans said. Another city, who received an overpayment of $21,000, has agreed to pay back the charge in 12 monthly installments, Youmens said.

"We have been in constant contact with RDS since that time and have been assured on numerous occassions that the money would be refunded to us," he said. It wasn't until March of 2011, after a three-year appeals process that, Youmens said, they were told the statute of limitations had run out and the money was not going to be refunded.

"I have been tracking this for three years," Youmens said. "It has been a very frustrating thing."

Initially there is a two-year statute of limitations for remittance of the overage. The mistake was made in late 2006 and was discovered in June of 2008, well within the statute of limitations period, Youmens said.

The statute of limitations was extended in 2008, Youmens said. The town was contacted in June of 2011, informed that the statute of limitations had run out in March of this year.

"My feeling on it is this," said Council member Jared Lyles, who is a practicing attorney in Silverhill, "these time limits are in place for a reason and if we go back and deviate from the system that is in place, we are opening ourselves up for problems in the future."

The town received a letter earlier this year from RDS, recommending the town not pay the overage because of the lapsed statute of limitations. Upon the recommendation of town attorney Josh Myrick, the Council voted unanimously at an earlier meeting to deny the payment.

At Monday's meeting, Council member Shirley Stevens made a motion to pay back the overcharge, seconded by Wayne Gruenloh. Stevens and Gruenloh voted for the measure. Lyles, Bert Jones and Steve Brooks voted against the measure. All council members were present at Monday's meeting.

Youmens said Monday that they have since sold the family business, but he still does business as general manager of HT Hackney Company, who bought the business.

"I would certainly not recommend any municipality use RDS to collect their taxes," he said. "I am very disappointed. I really thought you would want to do the right thing without having to get attorneys involved."

In other business Monday, the Council passed a resolution setting up a checking out to receive donations for the "Save the Little Hall" committee.

According to the terms of the resolution, Town Clerk Patricia Bankester was authorized to make deposits through the account. Deposits must be co-signed by either the mayor or mayor pro-tem and either the chairman or treasurer of the committee.

Representatives fromt he committee were present at Monday's meeting and said $969 in donations was raised at Saturday's Heritage Day Festival.

It was also stated at Monday's meeting that the town could donate the $17,500 received for demolition of the building to help with moving the facility, but it was recommended that payment be made directly to the mover.

The Town's Planning Commission also requested another public meeting be set to discuss moving the Little Hall. Issues have been raised over set-backs at the proposed location for the building. Opposition has also been expressed over placing the Little Hall in Paul Anderson Park across from Town Hall.

Mayor Tim Wilson said Monday that an alternative location on property next to the Oscar Johnson Library has been discussed. If the building is attached to the library, the library facilities could also be used, he said.

There are also issues with the cost of moving power lines in order to move the facility and Riviera Utilities has requested remittance of funds because the power grid for the entire town would have to be shut down in order to move the facility.

After several meeting dates were discussed and rejected for the meeting, Town Council members agreed to meet at 5 p.m. Monday, Oct. 10, to discuss the issues raised at Monday's meeting.

In other business Monday, the council:

* Tabled discussion of a contract with Goodwyn, Mills and Cawood for planning the Community Center Building which would replace the Little Hall at the town's park.

* Took no action on a proposal from BIS for a town website, asking Superintendent of Utilities Steve Williams to get additional quotes to be brought before the council at a future meeting.

* Heard from Police Chief Kim Wasdin regarding a $3,000 grand from the U.S. Attorney General's Office through FEMA for the purchase of camera equipment for a town police vehicle. The grant is part of an $89,000 grant being distributed throughout Baldwin County for gang control.

* Discussed moving the annual Chief's Breakfast, which will be held Oct. 26, from town hall to the Silverhill Baptist Church multipurpose building. The breakfast will be catered by Magnolia Blossom Cafe and Wasdin said she would discuss the matter with them before making a decision.

* Heard from Bert Jones on the success of Saturday's Heritage Day Festival and received a report from Jared Lyles regarding Saturday's Little Miss Heritage Pageant at Silverhill Elementary School. Several Council members also praised town workers for their work during the festival.