Greenville's woes worse than thought; town owes $100,000

The city of Greenville, Missouri, may owe more than $100,000 in unpaid state and federal taxes and penalties, city council members revealed during a meeting Friday.

The amount is four times greater than officials originally believed in May, when a new administration began reviewing city finances.

Council members want to hold a town meeting in about two weeks, where they plan to ask every resident to kick in an extra $20 a month on their water and sewer bills until the debt can be cleared.

The date and time of the meeting has not been finalized.

“This is the city’s bill. It concerns everybody in this town,” said council member Rendell Wills. “If we add $20 on the sewer bill a month until we get this paid off, then it can go back to the way it was.”

City officials announced in May low fund balances left the city unable to pay monthly bills or outstanding debt dating back to 2014.

It could take several more months before a Missouri State Highway Patrol investigation into city finances is complete, said Mayor Carrol Rainwater, one of three new council members elected in April.

Officials hope this will give an accurate picture of the city finances and how they reached this point.

The city has turned over seven years of records to Kraft, Miles and Tatum for review before an audit is completed, council members said.

Rainwater said the highway patrol wants to see the audit before completing its investigation.

Council members have said they are piecing together details from city records, which are missing or incomplete.

The city owes 11 months of state withholdings taxes at a cost of $500 a month, city clerk Judy Osburn said during discussion with council members.

Two and a half years of unpaid federal withholdings could add up to as much as $60,000 before penalties.

The city still is working with the Social Security Administration and compiling documents to determine the final tally, Osburn said.

The penalty for just two months of past-due federal withholdings was $745 earlier this year, she said, adding because the city received a penalty waiver in 2013, it is not eligible now.

The city also has not paid sales tax on the water and sewer collections in three years, Osburn said. This would have been between $150 and $190 a month.

Someone needs to be held responsible for the current problems, Rainwater said.

“I don’t care who’s guilty, who’s done what right now,” Wills said. “Right now, our concern is getting it paid off. We’ve got to get the city out of this.”

Wills, Rainwater and Larry Burchard were elected to the council in April, after which the city clerk, city attorney and police chief were replaced.

In May, the council provided residents with a list of $30,000 in unpaid bills.

In June, they said they believed the city had $25,000 in outstanding state and federal withholding taxes.

A loan was taken out for $40,000 from First Midwest Bank, but Rainwater said Friday this will not be sufficient. The city has spent about $18,000 of the loan, he said.

While many outstanding bills have been paid, the council said, the city remains unable to meet all its monthly obligations.

Council members made a motion Friday to pay the monthly bills if the city accounts could cover the amount. Osburn said it will not.

Last month, bills totaled $23,000, and the city had income of $20,000, Osburn said.