Snow Hill Commissioners Trying To Clean Up Financial Mess

Bad finances has a small town in Eastern Carolina reeling.

Snow Hill could be at risk of a state takeover if its management doesn't improve.

Nine on your side wants to know what happened.

Jim Niedelman is here with more on the town's problems.

Jim...

Allan, snow hill has seen the money available for spending in its general fund drop dramatically over the years.

The state is watching and says things have to change.

An audit report unveiled Monday night highlighted some significant financial problems for Snow Hill.

For years, the town's been spending more than its revenues.

What's worse is that the town's been spending money not included in the budget.

"It's messy and we've got to clear it up,” said Snow Hill Mayor Dennis Liles. “That's what we got to do."

Here's how bad things got in Snow Hill.

The General Fund contained roughly $53,000 at the end of last fiscal year.

That's less than 6% of expenses.

Why is that bad?

The state mandates a minimum 8% level while other governments this size average 65%.

A representative with the state treasurer's office sent a letter to the town noting weaknesses in its finances and internal controls urging town commissioners to take prompt action.

They responded by firing their financial officer last week.

Snow Hill’s independent auditor noted the town spent more than $100,000 for those financial services over 2 years and that the bookkeeping was done poorly.

Some also point fingers at Town Administrator Bob Clark who saw things deteriorate under his watch.

"Some people are wondering why you should keep your job?” asked this reporter.

“Well, I think that's certainly ultimately up to the town board,” answered Snow Hill Town Administrator Bob Clark. “I'm here to provide a service, but without good financial numbers, it's difficult to make good decisions. If I'm not getting that, I can't provide it either.”

“Do you feel you should keep your job?” asked this reporter.

“Yes,” Clark answered.

Mayor Liles expects the board to hold off on a decision regarding Clark until everyone gets a clearer picture of where things stand.

It's important to note that the mayor and three commissioners took their posts in December and inherited all of this.

They now face the challenge of raising revenues.

That could very well mean increasing water rates and other fees as well.

At this point, the state seems satisfied the town's taking steps to improve its position and is not likely to take things over.

Representatives from the state's local government commission plan to meet with Snow Hill's leaders later this month to guide them in the right direction.