EAST SPENCER — In an emergency meeting Thursday night, Mayor Kenneth Fox outlined a new plan to pay off the more than $200,000 outstanding balance on water charges owed to the city of Salisbury.
The Board of Aldermen also agreed that Fox should take over some of the town’s fiscal management duties as well as oversee all personnel matters.
According to the water repayment plan, East Spencer will send a $50,000 payment to Salisbury today.
With a $10,055.16 credit owed to East Spencer from Salisbury’s use of water to operate the Town Creek Wastewater Treatment Plant, the town’s outstanding balance will be $140,035.91 after today’s payment.
Within 30 days, East Spencer plans to apply $100,000 to the outstanding bill through the sale of town-owned property to The Empowerment Network, a non-profit community development corporation headed by Fox.
Fox says the organization will purchase the town’s troubled 11-acre landfill and 11 to 14 lots for redevelopment at a total price tag of $120,000.
After the $100,000 payment, East Spencer will face an outstanding balance of $40,035.94. But the town also will receive a June bill from Salisbury for its May water purchases.
East Spencer estimates that monthly bill at $40,000 and anticipates an outstanding balance owed to Salisbury of at least $80,035.94 as of June 30, the end of the fiscal year for municipalities.
Fox has proposed making sure that monthly bills submitted to the town from that point are kept current, while paying on the roughly $80,000 outstanding balance over the following 12 months.
The town says a separate account has been set up to collect water payments from customers and that revenues will be withdrawn weekly to pay Salisbury with cashier checks.
Fox said he spoke Thursday morning with Salisbury City Manager David Treme.
“I think they will be receptive,” Fox added.
Aldermen met in closed session for roughly 45 minutes Thursday before emerging and listening to Fox’s prepared statement, which included a separate sheet of paper outlining the repayment plan. Fox later took questions from a reporter and the audience.
“As mayor of the town of East Spencer,” Fox said, “I am none too pleased that we have allowed the fiscal management of our municipality to reach a point that elicited the recent newspaper headlines.”
Fox also announced that East Spencer would be sending a $1,253 check to Salisbury as a payment on its outstanding balance for a communications signal used by the town’s police and fire mobile radios.
Fox said it was imperative that the town maintain “a healthy relationship with other municipalities that have worked faithfully with us over the years.”
“These changes, I believe, will go a long way toward ensuring that,” he added.
Fox noted that the town has turned to Dixon & Odom for accounting and auditing services. It also will use Benchmark Inc. of Concord “to develop guidelines and procedures in the areas of administration, planning and budgeting,” the mayor said.
“An important project of that firm will be to oversee the rebuilding of the water and sewer infrastructure,” Fox added.
Fox said the town also has formed an important alliance with the U.S. Department of Agriculture to help the town with community development efforts.
Alderwoman Deloris High supported the mayor’s plan. She said some of East Spencer’s recent fiscal problems occurred after the town took back administrative duties from private contractor Business Partners USA, which continues to oversee garbage collection, park management, street repairs and water-sewer maintenance.
Alderman John G. Noble said the checks written as payments to Salisbury are legitimate, and he invited the public to inspect them. Mayor Pro Tem Ronald Hash credited Fox for working hard on “an excellent, realistic plan” to bring East Spencer current with its bill within 12 months.
Alderman Chris Sharpe said the plan can be accomplished with the mayor’s leadership. Aldermen also agreed that Fox would be the future spokesman for the town.
A citizen from the audience Thursday night asked whether aldermen would drop, as promised, the $5 extra charge that has been added to customers’ bills during the past three months.
Sharpe said May was the last month for the $5 charge, and basic rates should return to $35.89 a month.
Fox said dedicated employees, contractors and “a very capable board of aldermen” have been “working in the trenches to make East Spencer the type of community of which we all will be proud to live or be associated.”
He said their work has accomplished several things:
- Established the Community Development Corporation, which secured the loan to build an entrepreneur center off Andrews Street that will offer 18 professional suites.
U.S. Rep. Mel Watt will visit the center at 11 a.m. Wednesday, along with other invited guests, Fox said. An open house is planned for June.
- Received a $75,000 grant to assist emerging businesses.
- Developed a comprehensive growth plan.
- Improved the town’s physical appearance through aggressive zoning enforcement and town clean-ups.
- Contracted out services and decreased the amount of time for which work orders are completed.
- Reduced crime and improved the relationships of the fire and police departments with other county agencies.
On crime, Fox said the town hasn’t had a death due to violence in at least three years.
“No other municipality can beat that, I think,” he said.
He added that the current town board is the first to bring the Fire Department under the town’s authority.
Contact Mark Wineka at mwineka@salisburypost.com or 704-797-4263.
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