LIVERMORE — The Livermore Board of Selectpersons met Monday night with the town’s auditors and lawyer to discuss the municipality’s financial issues, but no action was taken after more than an hour of executive sessions.
Prior to the closed-door sessions, Ron Smith and Ed Warren with RHR Smith & Co. of Buxton shared what they had found since Smith met with the board Nov. 23.
A four-page letter was sent to the board Dec. 11 detailing the firm’s findings and concerns.
Smith said certain municipal practices have led to some residents being overtaxed or undertaxed.
“For the last three years, the Town of Livermore has made errors in its preparation of the certificate of assessment,” according to the letter. “In Fiscal Year 2018, the town overassessed … by $20,249. This error was the result of the ‘municipal appropriation figure’ of $1.48 million being $20,249 higher than what was approved at the annual town meeting.”
The source of the variance could not be resolved, according to the letter, which noted that in fiscal 2019, a similar error was made, raising $3,000 more than approved at the annual town meeting.
“In FY2020, the Town raised $87,425 under its approved figure at the annual town meeting,” according to the letter. “This was most likely the result of excluding the article for debt service in the amount of $89,425 as well as another unknown $2,000 variance.”
Timely reconciliations of general ledger asset and liability accounts such as cash, payroll liabilities, and taxes receivable were other items noted in the letter. Submission of retirement contributions, untimely submission of Form 941 Employer’s Quarterly Federal Tax Returns, payment of sick leave and vacation time record-keeping were specific items mentioned.
“This is the third year in a row there were problems with the certificate of assessment,” Smith said, adding selectpersons must be able to tell taxpayers they understand the information provided. “There have been struggles with that. We don’t really know what you know.”
Smith said the IRS has sent letters to the town, which went unanswered for 120 to 150 days.
“In your business, you need to be able to tell the story,” Smith told selectpersons. “That story you tell needs to be transparent and stand the test of time. Some of the stories we’ve looked at, we’re not there. Have a lot of problems with the math.”
Administrative assistant Aaron Miller asked if there should be a reassessment of the $89,000 or should the town eat that amount.
“You can do a reassessment, but that would cause more angst. It would not be popular,” Smith said. “You have the ability to afford this.”
“What got us here,” Selectperson Brett Deyling asked.
Smith said that information was sensitive and should not be shared in open session.
The meeting included lengthy executive session with the auditors and lawyer Matt Tarasevich from Bernstein Shur and with only Tarasevich.
After those private sessions, the meeting was adjourned with no action taken.
“The discussion is not over,” Selectperson Benjamin Guild said.
Miller said more discussion is expected on the town’s financial issues, probably in January.
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