By Stephen Baldwin, RealWV, www.therealwv.com
Three months into his second tenure as Mayor of White Sulphur Springs, Thomas Taylor called an emergency city council meeting on Tuesday evening.
Notice was provided for the emergency meeting on Tuesday morning, citing financial concerns. While meetings ordinarily must be announced days in advance, state code allows “emergency meetings” to occur when “addressing an unexpected event which requires immediate attention because it poses: (A) An imminent threat to public health or safety; (B) An imminent threat of damage to public or private property; or (C) An imminent material financial loss or other imminent substantial harm to a public agency, its employees or the members of the public which it serves.”
Taylor began the meeting by saying, “The reason for this meeting is to discuss financial issues we have discovered within our city government.”
He then asked for and received a motion from council to enter executive session. As the mayor and council began to leave city council chambers, a citizen asked what the purpose of the executive session was.
Mayor Taylor responded, “When we come out, I’m gonna explain it to the public.”
Forty minutes later, Taylor and all six members of city council returned. Recorder Dave Dillion moved that they return to regular session.
Mayor Taylor then offered comments from a prepared statement.
“Over the past three months since being sworn in, my team and I have undertaken a thorough review of our city’s financial health,” he said. “What we have discovered is serious, and it demands immediate action.”
I was led to believe we were operating under a spending freeze imposed by the previous mayor effective July 1, 2023, through June 30, 2025. That info formed the basis of every budget discussion, every committee decision, and every assurance we offered to the public. I have since learned it was not true. The financial reports and statements provided to the finance committee were inaccurate and incomplete.”
Citing the need for transparency and honesty, even if feelings would be hurt, he continued, “To come before you tonight and tell you our city is financially sound would be misleading.”
‘Excessive spending’
Citing “excessive spending,” Taylor said city funds had been depleted on items which had not been approved by the city council.
Examples shared later in the meeting include: pay raises given to many but not all city employees over the past five years (including subsequent increases in employee-related expenses), $86,000 spent renting automated external defibrillators (AEDs), $250,000 spent on uniforms & rugs over more than 15 years, and $75,000 on computer services over the last two years.
A citizen asked, “Who made the purchases?”
Taylor responded, “This leads back to the previous administration.”
“It goes back several years, not just two years,” added Audrey Vanburen, city council member.
Taylor noted, “We (also) had an employee who is no longer with the city who stockpiled invoices for the last 6-8 months. We didn’t know we owed them.”
Plus, he said, “$6,000 worth of cubicles were bought without council approval. All of that has to stop.”
Another citizen asked, “Why wasn’t action taken previously?” citing the cubicles as an example.
Taylor said it should have been.
“Why wasn’t it?” the citizen responded to the mayor. “Weren’t you on council then?”
“I was,” he replied. “When I asked the question, I was told they were under the spending authority of the mayor.”
‘The $1 million fund’
As a result of these findings, Taylor said, “At this time, I am imposing an immediate hiring freeze. We cannot commit to additional payroll obligations until we fully understand the scope of our liability.”
He pledged to hire an independent auditor to conduct “a comprehensive review of every account, every line item, and every transaction over the past five years.”
“I will schedule regular briefings monthly for the second quarter so the council and our citizens can track our progress,” he said. “Once we have a clear picture of our finance, we can restore normal operations.”
A citizen asked how often the city’s financial accounts were audited.
“I figured this was gonna come up,” Taylor replied. “We are still waiting on the 2023 audit. That’s how far behind they are.” He then said hadn’t yet looked at past audits but would get in touch with the auditor who performed them soon.
“These budget cuts will not affect our essential services,” Taylor added. “But nothing will be bought without my review and my signature. Spending has gotten out of control. It will not continue.”
Taylor then referenced “the $1 million fund,” pledging to “find out why that was depleted the way it was.”
He was referring to a $1 million account accessed by the city in 2018 via state legislative action. (Author’s note: I was a state senator at the time and sponsor of the bill.) In the 1980s, the city made a land deal with CSX, then owners of The Greenbrier Hotel. In return for giving the land to CSX, the city received interest from a $1 million fund annually. The bill allowed the city to access the principal in addition to the interest, as a means to enhance flood recovery after the historic June 2016 flood which killed 23 people and caused millions in damages.
Taylor said the principal amount of the fund was down to $100,000, held in two certificates of deposit in a local bank. After pledging to determine how the money had been spent, he asked for authority to access the rest of it.
“I would like to ask for a motion to liquidate the two remaining CDs from the $1 million fund, in the amount of $100,000, $50,000 each, to move into the operating fund to ensure that we can get back on track.”
Council approved his request unanimously by voice vote.
As the meeting concluded, council members acknowledged Crystal Byer as the town’s new financial secretary and thanked her for work in the new position.
Stay tuned to RealWV for updates.
