Grand Jury Releases Scathing Report On Town Of Century, Calls For Utilities To Be Sold, Finds Misappropriations, Financial Emergency

An Escambia County grand jury has issued a scathing report as the result of their investigation into the Town of Century.

The Town of Century is in a state of financial emergency and numerous improper actions have been taken by administration, staff and the town council, according to a grand jury report released Tuesday afternoon.

The Grand Jury is calling for additional investigation by the State Auditor General, State Attorney’s Office and Escambia County.

The grand jury found that the town of Century is a state of financial emergency, and the current administration and council have failed to act in the best interest of the community. It is recommending that the town sell its water, sewer and gas operations, and only remain responsible for roads, parks, and land use programs.

The grand jury found numerous serious financial problems within the town….a gas system that has lost over a half million dollars in two years, a water and sewer system that lost $465,000 in two years (2016-2018), payroll checks written on an account without sufficient funds to cover those checks, and routine bills that are regularly not paid on time because sufficient funds are not available.

The grand jury also found loans made in previous years to business owners dating back to 2003, but the loans did not appear on the audit as owed to the town until 2017.

The town also amended a budget improperly and borrowed funds improperly from a restricted account, including $306,134 that must be repaid from 2017. The town previously wrongly borrowed about $2.7 million from the Special Revenue fund and approved a repayment plan of $300 per month — a 750 year repayment schedule.

The grand jury found a “lack of understanding of the requirements of both the Sunshine and Public Record Laws, digital recordings of at least one meeting were lost, numerous public records requests were not responded to in a timely manner, paperwork for an economic development loan to one council member has been lost and cannot be located, and three council members were previously charged with non-criminal violations of the Sunshine Law.

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The grand jury findings were as follows:

I. We find that the Town of Century is in a state of financial emergency. The current administration and Council have failed to act in the best interest of the community. Town officials have shown a clear lack of knowledge and understanding as to the operations of a governmental organization.

2. The current administration and Council have failed to prepare and approve a budget that is realistic or financially solvent.

3. We find that the administration and Council have improperly borrowed funds from the gas tax account and the Local Option Sales Tax account.

4. We find that there has been a lack of accountability between the Mayor and supervisors and between supervisors and employees.

5. We find that the Mayor has failed to follow proper procedure when approving the use of Town equipment and manpower on private property. This appears to be as a result of a misunderstanding of public purpose and the definition of private and public property. Regular consultation with the Town’s attorney may prevent this type of misunderstanding in the future.

6. We recommend that Century sell the assets of its utility services, sanitation, natural gas, and water and sewer, and use the proceeds to repay the amounts borrowed from the restricted fund. The loss of

customers and problems with the operation of these services make it unlikely that they can ever consistently produce a profit for the Town in the future.

7. Amendments should be made to the Charter or ordinances to provide that the Town will be solely responsible for roads, parks, and land use programs.

8. We recommend that this matter be brought to the attention of the State Auditor General’s Office and that forensic financial audits be done for the past five years. Any irregularities should be referred lo the appropriate agencies, including professional licensing boards if such action is warranted. All contracts for third party professional services should be audited as well.

9. We recommend that Century seek the assistance of a municipal consulting firm to assist in the development of policies and procedures. As part of this process we recommend that an operational audit be done. These policies should provide both job descriptions and salary ranges. All employee benefits should be consistent with industry standards. Employee handbooks should be updated and should contain an anti-nepotism provision. The Florida League of Cities may be able to assist in this matter.

10. All loans by Century should be clearly listed on all appropriate financial statements. No person who has an outstanding loan from the Town should be able to run for any Century public office. Loans should not be made to any Town employee or official.

11.We have heard testimony that there is a lack of written contracts and that contracts do not have expiration dates. All contracts should be reviewed and amended as necessary. All businesses or individuals providing professional services to the Town should have written contracts containing appropriate expiration dates.

12.We recommend additional training in the area of Sunshine and Public Records. This may be done by the Town’s attorney, the First Amendment Foundation or the Attorney General’s Office. We request that the Office of the State Attorney continue to investigate allegations of missing public records as well as the failure to properly respond to public records requests.

13.We recommend that before funds are spent that they be clearly allocated and approved. We have heard testimony that economic development funds may have been spent without proper county approval. In addition, all expenditures must comply with the limitations set forth in the Town Charter.

14.The State of Florida and Escambia County should investigate the misappropriation of gas tax and LOST funds.

15.Spending restrictions should be placed on any funds provided by outside governmental entities that are not otherwise limited in their use. Prior approval should be obtained by the Town before these funds are spent. Specifically, before any funds provided to the Town of Century by Escambia County can be spent, the County should review the proposed expenditure and determine that such expenditure is appropriate.

Pictured top: Century Council members (L-R) Luis Gomez, Jr., Ann Cofield Brooks and Sandra McMurray Jackson at a December 17, 2018, meeting. The three received civil fines last month for non-criminal violations of the Sunshine law. NorthEscambia.com photo, click to enlarge.