SPRING LAKE — The Spring Lake Board of Aldermen voted Monday night to accept an interlocal agreement on sales tax collection that includes revisions south by Cumberland County.
The N.C. Local Government Commission also held a public hearing on the town’s 2023-24 budget.
The board said the revisions in the tax collection agreement are necessary.
Alderwoman Sona Cooper said the language in the agreement should be concise.
“The agreement currently states that the tax administrator, county manager and town manager may agree ‘from time to time’ as to how revenues collected for the town under this agreement shall be remitted to the town,” said Cooper, “With ‘time to time,’ they can hold our monies, collect interest on it, and decide when to send it or forget to send it. There needs to be a specific time period.”
The agreement was reviewed by both Town Attorney Michael Porter and Debra Mack, a director with Greg Isley CPA, who has been working with the Local Government Commission to correct financial mismanagement.
Mack said the county should do away with the language “from time to time” and remit payments to the town electronically, which is the current practice. She suggested if the amount due is $5,000 or more, it should be remitted the next day. At minimum, Mack said, the county should make payments weekly.
Porter suggested that the town approve the agreement because other municipalities had asked for similar changes that were denied by the county. He said county officials would not be able to review the agreement until August if it were not approved as presented.
“I understand what Debra Mack was trying to do because other municipalities tried to do the same,” said Porter.
Cooper said she understood that if the town did not approve the agreement, the county would refuse to share the tax revenue. However, she said, the proposed changes are important.
“I like what Debra Mack suggested. I’m not one of those people who say, ‘Well, the others have done it so we need to do it.’ That’s not the way we do business anymore,” said Cooper.
She also said the county is violating state law without having a pre-audit certification before entering into a written contract.
Cooper was the board member who first noted that the town did not have a contract on file. Since the last signing of the agreement, the rate from the county was lowered from 1.7% to 0.75%, which would save the town $20,000 in tax collection fees every year.
Alderman Marvin Lackman said the county has to do better.
“Mr. Porter, as our town attorney, you need to fight for us, to fight for the residents of Spring Lake,” said Lackman.
The board voted unanimously to approve the agreement with revisions, including having a pre-audit certification and with the process that Mack suggested.
Budget public hearing
The Local Government Commission heard a presentation on the fiscal 2024 budget and opened a public hearing for comment.
The proposed nearly $8.1 million budget does not increase the property tax rate although the water and sewer rates will increase for the third year. The water-sewer increases are due to rate increases by the Fayetteville Public Works Commission, one of the town’s main sources of water, and by town officials’ desire to follow the rate model put together in a water and sewer study by engineering firm MacConnell and Associates in 2020.
The budget also adds positions to address beautification, code enforcement and other compliance issues.
Two residents who spoke during the public hearing are both former members of the town board: former Alderwoman Fredricka Sutherland and N.C. House Rep. Marvin Lucas, a former mayor and alderman in Spring Lake.
Sutherland said she opposes the hike in water and sewer rates, citing residents who live on fixed incomes. Lucas praised the Local Government Commission for its work.
Mayor Kia Anthony, Alderman Raul Palacios and Cooper echoed Lucas’ sentiments.
Palacios said the Local Government Commission’s intervention in the town’s financial dealings has been a game changer for the town and brought back the stability that is needed.
“In 2021, Spring Lake’s bank account had $1.6 million, and today, there is $12 million. In 2021, Spring Lake was not balancing the checkbook, and today our bank reconciliations are up to date. In 2021, the town had taken $1.8 million from the water-sewer fund in order to balance its budget, and today, the town has replenished the water-sewer fund of all funds taken. In 2021, the state took over Spring Lake’s finances, and today, the state has been giving us great reports. We have optimism and the possibility that by the end of this year or early next year, we could have our town finances back,” said Palacios.
The Local Government Commission is expected to vote on the proposed budget June 26.
Honoring Fire Chief Jason Williams
With three-fourths of members of the Spring Lake Fire Department at the meeting, volunteer Chaplain Daniel Armagost, who has served the department for 32 years, presented Fire Chief Jason Williams a clear boxed replica of the town fire station to a rousing standing ovation.
“We are paying honor and tribute to our fire chief, Jason Williams. He has led us, improved the department and training, was instrumental in spearheading the construction of the new fire station and the two engines. He also assumed the position as interim town manager. We wanted to take this opportunity to let everyone know how we feel about the chief and give him this token of appreciation,” said Armagost.
Williams gave all the credit to members of the Fire Department.
A reception was held after the meeting. However, an emergency call came in, and firefighters had to leave before the meeting adjourned.
