City finances topic of special meeting in Cave Springs

CAVE SPRINGS -- A Cave Springs alderwoman questioned the city's financial stability and was concerned that hundreds of thousands of dollars were missing from two city accounts.

Mary Ann Winters reported Tuesday evening at a special council meeting that the city had overspent with the Police Department and payroll. She said there was another area where money was overspent, but she could not remember that area.

"We just kept spending," Winters said about spending more money than was budgeted.

Winters also questioned whether the city was missing nearly $900,000. She reported that she could not find $650,000 that was set aside in a reserve account and $250,000 in an emergency reserve account.

"I can't find that money," Winters said.

Mayor Travis Lee said he did not have access to the money and that he's been trying for months to review financial documents and see reconciled accounts with the council.

Lee said after the meeting that an audit will give a correct showing of the city's finances.

"We don't know if money is missing or we're over budget because the accounts have not been reconciled," Lee said. "I have personally caught mistakes about where money was being put."

Mark Hayes, director of legal services for the Arkansas Municipal League, suggested the city have an audit done during a recent special meeting held to address controversy between Lee and Kimberly Hutcheson, the city's recorder and treasurer. Lee sent Hutcheson home Sept. 1 for "workplace harassment and discrimination" and blocked her from online city activity. Lee said because Hutcheson is in an elected position, he can't fire her, but he can send her home.

The mayor said he started pulling duties from Hutcheson because she wasn't paying the bills, the insurance had almost expired and the city was months behind in paying taxes.

"Who is responsible for managing all the money?" Lee asked as he discussed the duties of the treasurer/recorder.

Alderman Jay Finch said the council could not move forward until they have reconciled accounts, which he said he had not seen since May or June. He also placed the blame on Hutcheson.

"Only one person is responsible, and she's sitting right here at the middle of the table," Finch said.

Hutcheson countered that those duties were taken away from her, prompting Lee to tell her she was out of order.

"I'm on the council and you work for me," Finch replied, drawing boos from the crowd. One person said Finch worked for them.

Lee threatened to have people removed from the meeting, and at least three people got up and left the room.

Hutcheson reported that the city had $201,000 in its general fund with a bill for $75,000 and two salary payments of $48,000 due in the coming weeks.

Winters said some people were being overpaid and the mayor had his assistant complete the most recent payroll at $58,000. She said arrangements should be made with people who were overpaid so they can return the money.

Winters was worried that the city was running out of money and would need $450,000 in order to be able to pay salaries and benefits for the remainder of the year.

Lee said they overpaid two people and they wrote a check and refunded it, but Hutcheson claimed that several other employees had also been overpaid. She did not specify the number or how much money was involved.

Winters also claimed that $55,000 had been transferred from the water department to buy two police cars and that Lee had outfitted his city vehicle as a police car despite aldermen's request he not outfit the vehicle with lights and police equipment. She also said Lee or the police chief used $10,000 from the water department to buy office furniture.

Lee said he would not authorize anymore spending unless necessary, but Hutcheson said Lee had already authorized a $600 payment for a conference table that isn't needed.

Finch said Hutcheson's comments concerning the table was an example of a power play between Hutcheson and Lee.

Hutcheson then accused Lee of pulling her duties and not allowing her to do her job.

One man yelled out, "Tell the truth Travis. Look at your heart."

Mike Martin, a Cave Springs resident, said he was shocked by the meeting, and he said the council has the responsibility to look after the money.

"I'm embarrassed for our city," Martin said. "I'm embarrassed for you guys."

Terri Ray of Cave Springs said she was in agreement with having an audit. She wanted the mayor to give Hutcheson her duties back. She also encouraged the mayor and city council not to "fuss like kids."

NW News on 09/28/2016

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