Local News

City of Creedmoor Owes IRS $1.2M

Posted September 17, 2007

Map Marker  Find News Near Me

— An accounting error could cost the city of Creedmoor nearly a quarter of its yearly budget. An audit revealed the city has not filed payroll reports properly with the Internal Revenue Service for nearly seven years.

“I don't sleep much at night worrying about this. This is not the legacy that I wanted to leave for my young daughter,” Mayor Pro-tem Tim Karan said.

City officials said nothing illegal happened, it was simply a big mistake by the former finance director, Eleanor Fowler. That mistake is going to cost the city $1.2 million.

“We never pressed issues with her simply because we knew that she was overloaded. We tried it a couple of times to give her additional staff, but it was always kind of put that it was harder to train someone,” said Karan.

Fowler retired in June. When WRAL called Fowler, she said she cannot tell her side of the story yet.

With an annual budget of less than $5 million, city commissioners have tough financial decisions to make, and some community projects could be delayed. The city planned to buy a new squad car for the police department and make renovations to city baseball fields. There was also a proposed water and sewer line extension to Oxford, which may be harder to accomplish due to the IRS penalties.

“We pay taxes like we're supposed to do, and there's so many things that's supposed to be done that's probably not going to be able to get done, and that's going to affect our community,” resident Sara Sherron said.

Karan said there is a good chance the IRS penalties will affect the community for a generation to come.

The city will present the state Local Government Commission with a response to the audit on Tuesday. The finance department was recently revamped to have three employees instead of one.

27 Comments

Please with your WRAL.com account to comment on this story. You also will need a Facebook account to comment.

Oldest First
View all
  • lizard Sep 18, 2007

    creedmoor's downtown is bigger than cary's

  • dukeblue Sep 18, 2007

    fuzzmom if you don't like creedmoor then just move somewhere else. i've been there 11 years and i don't have a problem with it. if the new foodlion is overpriced then go down the road about 5 miles to the other one that we have. and just to let you know they are building a walmart in creedmoor. start reading the paper. and to whoever who said downtown creedmoor looks like a ghost town, try riding through during the day and not just commenting on the picture. and if you want a "real" place to eat just drive to raleigh, durham, or chapel hill. it's not like we're that far from any of those places. yeah overcrowding is becoming a problem in the schools, that's why they just built a new high school in stem. if we really had the money to fix all the problems at once i think they would. most of the people complaining are the ones sitting around and waiting for somebody else to fix them, get out and make a difference yourself if it's that bad.

  • pleshy Sep 18, 2007

    Fuxxmom - If that is the case, why do you care? If you are going back from whence you came, what part of "It is obviously someone else's problem" gives you so much trouble?

  • iamforjustice Sep 18, 2007

    Why don't Butner/Creedmoor/Stem just merge into one city. That is the best thing for them to do and make 50 a 4 lane highway. And fix up downtown Creedmoor. It looks like a ghost town.

  • 2beornot2be Sep 18, 2007

    The local paper stated that Creedmoor would save money by purchasing water from SG water & sewer authority. They would also be able to keep the water plant closed. Lets see save money by closing the water plant, salaries for the water plant supervisor, and employees. I bet city TAXES / WATER still goes up in Creedmoor. Break open the wallets city residents you are the ones who will pay for these financial discrepancies.

  • fuzzmom Sep 18, 2007

    pleshy,
    my stint there is job-related and short-lived. My point still stands, stop building all the houses if you can't keep up with the growth!

  • iamforjustice Sep 18, 2007

    What has happened to Creedmoor. Is Darryl Moss still the mayor. The city now has accounting crooks, a lot gang activity, no money, no recreation, no entertainment. The town is dead. How much more can they take?

  • pleshy Sep 18, 2007

    Fuzzmom - this thing you are using called the Internet, it could have informed you of some or all of those "failings" of Creedmore before you moved there. Unless of course you drove the Packard until it ran out of gas at set up your puptent and slit privy wherever you happened to end up.

  • OLD PIRATE Sep 18, 2007

    Who audited their books? or cooked

  • TruthBKnown Sep 18, 2007

    "City officials said nothing illegal happened" Yeah, cheating $1.2M from the IRS is perfectly legal.

    The gestapo IRS organization has been running over people for years. This mistake doesn't bother me a bit. The IRS costs something like 5 billion a year just to operate.

    Vote for candidates that support the Fair Tax (see FairTax-dot-org for more information...)

More...