Spring Lake Town Hall closed, employees sent home on heels of possible state takeover
The doors of the Spring Lake Town Hall have been locked, and some employees were sent home on Thursday. While the police and fire departments are operating and residents can use the drive-thru to pay utility bills, Spring Lake's elected officials are nowhere to be found.
The closure comes after members of the state's Local Government Commission warned the town of a possible takeover to straighten outs its finances. The commission provides resources, guidance and oversight on topics including annual budgets, internal controls, debt management, pensions and health care to more than 1,300 local governments across the state.
Spring Lake has an estimated budget deficit of $1.2 million, but the town's proposed budget funds only $285,000 of that shortfall, state officials said.
Sandra Fritz has lived in Spring Lake for five years and said she doesn't have a clue why the doors to Town Hall have been shut.
"It just doesn't make any sense, to be honest. I have no idea what's going on," said Fritz.
Spring Lake Mayor Larry Dobbins did not return WRAL News' request for comment, while Town Manager Samantha Wullenballer referred questions about the closure to State Auditor Beth Wood.
Town leaders recently passed a budget to avoid state takeover. But State Treasurer Dale Folwell, who is a member of LGC, said it looked like the deal may have fallen through, and now an investigation into the financial disparities is underway.
"I would say that those citizens would be more desiring of making sure that the hard-earned money they sent for their property taxes is properly accounted for," said Folwell.
"They've got a not-for-profit out there that some of them started, and it's gotten them in a financial situation that's just terrible," added Wood.
While Spring Lake has had financial problems since 2014, the question right now is if there is any criminal activity going on.
"That's something that we would have to wait for the auditor and her team to complete their work. Obviously, we are preparing for the worst, but hoping for the best," said Folwell.
State leaders did not say how long Town Hall would be closed or when the State Auditor's Office will complete its investigation.
"I don't know if we've got any any place to go but to get involved and take them over," said Wood
