CAVE SPRINGS -- The city attorney said Monday that the city and some of its officials face potential civil and criminal liability over recent City Council actions.
Tom Guarino said there may be multiple federal Equal Employment Opportunity Commission complaints pending against one city official involved in the firing of 10 employees Wednesday.
Guarino sent a memo Monday to the City Council that outlined his concerns and advised council members to let stand Mayor Travis Lee's Thursday veto of the council's actions to cut the city's budget and slash 10 employees from the payroll. Guarino detailed the council's decisions and his concerns about potential violations of local, state and federal laws regarding open meetings, city purchasing restrictions and hiring and firing decisions.
As city attorney, Guarino said, he is authorized to "file information" for the arrest of any person who violates city ordinances. Violation of the state's Freedom of Information Act would be handled by the Benton County prosecuting attorney, and Guarino said he has "briefly discussed this matter" with the prosecutor. Guarino also said Lee had discussed the council's actions with the Benton County sheriff's office.
Guarino said in the memo that the City Council's Wednesday actions "are at a minimum subject to legal challenge and are likely not in compliance with state law and local ordinances."
The council eliminated the positions of 10 employees as part of the city's 2017 budget, including Charlie Holyfield, the mayor's chief of staff; Nicole Ferguson, administrative assistant; B.J. Burney, building inspector; Craig Southern, planner; Nathan Coy, whom Lee described as a police officer who also does code enforcement; Gary Crews, a part-time police officer; Stephen Spann, a police clerk and code enforcement officer; Chris Burgess, a water and sewer employee; Jaci Hawkins, a deputy court clerk and water and sewer clerk; and Stephanie Wood, building clerk.
The council also approved requiring Lee to receive approval before any expenditure.
Lee has answered accusations of misspending by saying he wants an audit of the city's finances because he believes that it will vindicate him. He said he only wants Cave Springs to be healthy and to continue to grow, and that the "old guard" is trying to prevent that.
Lee did not answer his phone or immediately respond to messages left Monday at City Hall seeking comment on Guarino's memo.
Other city officials have denied Lee's claims. Mary Ann Winters said that as an alderman she is concerned for the city's financial condition. The city couldn't pay its bills and make payroll with the number of employees it had before the council voted in favor of layoffs, Winters said.
"I figured it out that between 80 and 85 percent of our revenue is being spent for salaries," Winters said. "There's no way the city can operate on 15 percent. It needs at least 50 percent. This is purely monetary, not in retribution as it has been said."
Guarino suggested ways the City Council can minimize the city's legal exposure, including accepting Lee's veto of its actions. Guarino said he was not advising city officials on their own personal civil or criminal liability.
The council can call a special meeting to discuss its goals for limiting spending, to consider what other cities do within state law and to develop a revised ordinance to meet those goals, Guarino said. The council could also adopt its working budget and then revisit reductions in spending.
State Desk on 01/10/2017