The meeting commenced with an acknowledgment of Jeff Taylor’s resignation and the necessity for the election of a new chair. It was decided to defer the election of a temporary chair and vice chair until the next meeting, allowing the council to focus on more matters such as the Finance Director’s report and the town’s financial health.

The Finance Director’s report highlighted several issues. Firstly, the potential replacement of accounting software was discussed to improve financial management efficiency. Secondly, preparation for the fiscal year 2023 audit was underway. Thirdly, the council reviewed emergency expenditures and the status of a FEMA Public Assistance bridge loan. The most concern addressed was the unapplied payments and outstanding receivable balances in the Utility Billing department. Plans were laid out to investigate each case thoroughly and make the necessary adjustments to rectify these issues.

The financial review revealed an estimated $300,000 loss in collections resulting from the town’s closure in the previous year, and the possibility of substantial accruals for potential write-offs was mentioned. An error in the cash flow statement was acknowledged and corrected; the error was due to an incorrect start date. However, expenditures were trailing the budget by $1.7 million. The council also reviewed a comparison of revenues to the pre-hurricane budget, which illustrated a $200,000 shortfall.

In a display of fiscal responsibility, the council discussed the $5 million loan received from the state intended for FEMA projects. The discussion extended to the budget calendar, marking important dates for the budget preparation process, including strategic planning sessions and public hearings.

The council also contemplated whether to show a summarized view of funding sources and expenditures. During this discussion, the external auditor provided insights on the proposed forensic audit, emphasizing its cost and time-consuming nature and the improbability of uncovering fraud. The council deliberated and ultimately decided not to pursue the forensic audit. Instead, they voted to create an anonymous tip line to enable the confidential reporting of financial and legal concerns.

The council considered the policy for this tip line and the potential role of the town attorney in dealing with the matters reported through this channel. Additionally, the council awaited a response from the attorney regarding the risks and costs associated with upcoming demolitions.