Eastville officials assessing town finances amid resident concerns

Eastville Town Council members said Monday they are working to determine the full scope of the town’s financial problems after residents and business owners raised concerns about rumors involving cash flow, bounced checks and the town’s overall financial condition.

During the June 1 Town Council meeting, several speakers said they had heard troubling reports about the town’s finances and urged council to be more transparent. Eyre Baldwin told the council that investors and business owners in town need clear information, not rumors, as they consider future projects in Eastville.

Council members acknowledged they had been surprised by some of the financial issues recently uncovered. They said they are reviewing records, working through budget questions and trying to determine exactly how serious the situation is.

Mayor Eleanor Gordon said the town is preparing its budget for the coming fiscal year and must adopt it before July 1. She said the town plans to advertise the proposed budget, hold a public hearing, wait the required period, and then vote on the spending plan.

Gordon also said the town would seek guidance from the Virginia Municipal League, legal counsel and state officials. Council members discussed contacting Delegate Rob Bloxom’s office after speakers said assistance may be available through the Commonwealth to help Eastville address its financial challenges.

The discussion also included the town’s revenue sources. Gordon said the town once relied heavily on bank franchise tax revenue, but that source has declined over the years as banking ownership changed. She said other revenue sources, including meals and cigarette taxes, have not generated enough money to solve the town’s budget challenges.

Council members also discussed whether to release or make available an internal financial summary prepared by the town treasurer. Some members said the public should be able to review the information, while others said the town should consult legal counsel before distributing it.

Officials also questioned the cost and need for a formal audit, saying the town is not required by state code to conduct a full audit because of its size, but has done so in the past. Council members said they would seek advice on what level of financial review is required or advisable, especially for grants and other funding opportunities.

The town has scheduled a budget work session for June 15. Gordon said the full budget document is expected to be available with the meeting agenda, and residents will have a chance to comment during the required public hearing before council takes final action.