State reins taken off Lynchburg finances

By RANDY BURNS
Item Staff Writer
rburns@theitem.com

LYNCHBURG — Lynchburg is once again receiving state revenue from the Office of the State Treasurer.

Since February, Treasurer Converse Chellis has been withholding aid to municipalities that have not submitted a proper financial audit to the state.

Lynchburg was one of 20 towns and cities in the state that did not meet the deadline for submitting its audit for fiscal year 2007. The Clarendon County municipalities of Manning, Turbeville and Summerton were also late in submitting their audits but managed to comply with the requirement before their revenue was cut off.

In an Aug. 27 letter from Chellis, Lynchburg Mayor Thompson Isaac was informed of the state's action to release checks to the town totaling more than $41,000 for Local Option Sales and accommodation taxes, reflecting money generated from January through July.

The town will receive almost $11,000 less in annual revenue from the state as part of an agreement it has with the treasurer's office to repay about $85,000 in back traffic fines.

"Please know that we will continue withholding the quarterly payments of $2,699.89 from your Aid to Subdivision to apply towards your delinquent court fines as previously agreed and the difference is also being released to you," Chellis wrote. "I appreciate your cooperation and look forward to working with you in the future."

Isaac said the state has treated the town fairly. The mayor said the town must take responsibility for its financial condition.

"We're paying our debt," Isaac said. "We're going to be fine. The liens against the town have been removed. The money is flowing again. And we not only have submitted the 2007 audit, but we have submitted our 2008 audit as well."

Isaac commended Town Council for its efforts to establish fiscal responsibility for the town.

"We're a small town," he said. "And we must work together. I feel real good about how the council is working as one body. We are working together right now."

In recent months, Town Council has been embroiled in controversy as Isaac and some council members have bickered over a variety of issues, including Lynchburg's failure to comply with state requirements.



Contact Staff Writer Randy Burns at rburns@theitem.com or (803) 491-4533.