Action action on Leachville IRS settlement
Leachville city council met in special session on Thursday and took action of settling their IRS tax indebtedness.
The council voted to purchase certificate of deposits for the $108,844.43 in funds needed to cover a proposed settlement of the tax debt to IRS. The CDs will be purchased from Leachville banking establishments.
City funds making up the more than $108,000 were derived as follows: $10,000-General Fund; $10,000-Melody Theatre Fund; $3,307.66-Industrial Account; $10,622.76-General Fund CD; $15,939.43-General Fund CD; $5,286.04-Street Fund; $31,076.33-Industrial Fund CD; $5,045.91 and $2,566.50-Cemetery Fund; and $15,000-Water Department.
"Putting the money aside in a certificate of deposit would allow the city to draw interest while waiting for an answer from IRS," City Clerk Ruth Ann Keith said. "I divided the money for CDs between our two banks.
Mayor Ralph Wells and several councilmen voiced possibility of mortgaging city land and equipment to raise funds if needed. Several councilmen asked that the city look into potential budget cuts.
A letter was read to the council from CPA Stan Whitlow. He questioned the city's commitment to handling the tax matter. The letter read, "As a citizen of Leachville, I have concerns about the apparent lack of concern the city administration has shown in resolving these issues, which have been known for over two and a half years. If the city administration had taken an aggressive stance in settling the tax issues shortly after they became known, I believe that a much more favorable settlement would have been possible."
Whitlow also suggested the city use accountant Don Ray or Frank Heath in settling the tax matter.
The city had voted not to continue using Frank Heath as a tax consultant.
"Former city accountant Don Ray no longer does any work for the city either," Keith said. "He is retired now. He used to put together a quarterly report on the water department."
The next regularly scheduled council meeting will be at 7 p.m. Aug. 7 in city hall.