Fairfield County Council hires audit firm to negotiate lions share of $1.4M fines, fees

Speakers Call for Reinstatement of Second Public Comment Session

WINNSBORO – Fairfield County is expanding its effort to combat its seven-figure IRS bill.

On Monday night, council members voted 5-0 to authorize interim administrator Clay Killian to negotiate an amended contract with Mauldin & Jenkins “due to the expanding scope of work regarding the county’s IRS appeal.”

Council members Dan Ruff and Shirley Greene were absent for the vote.

The vote followed a 15-minute meeting behind closed doors during which council members received legal advice about the contract.

There was no discussion on the motion, which was made by Councilman Clarence Gilbert.

Fairfield is already paying $40,000 to Mauldin & Jenkins, a Columbia accounting and financial firm, to appeal various fines associated with previously unfiled tax forms dating back to 2017.

It was not immediately clear as of press time how much more Fairfield will wind up paying Mauldin & Jenkins.

All told, Fairfield learned last December that it owed the IRS $1.4 million in unpaid taxes, penalties, and interest. The county has repaid approximately $780,000 of that debt.

Earlier, during public comment, Ridgeway resident Randy Bright thanked council members for publishing monthly financials online, saying it was long overdue in light of the county’s IRS woes.

“If we would have been reviewing those (financials) publicly, we never would have been so deep into this IRS issue,” Bright said.

“And including a review of the payment register would show the payment to the IRS of almost $400,000 almost six months before it was publicly announced,” Bright continued. “That’s just the tip of the iceberg of why it should be reviewed.”

Fairfield discovered in the spring of last year that IRS forms relating to county healthcare had not been filed dating back to 2017.

Killian’s predecessor, interim administrator Laura Johnson, paid hundreds of thousands of dollars in fines months before she announced that she had done so. Her contract was not renewed in January.

Over the past several months, Fairfield has scrambled to file the unfiled forms while also negotiating reduced or waived penalties.

Three speakers addressed the light agenda considering the pressing financial issues the county faces.

Councilwoman Peggy Swearingen later asked staff about future plans for monthly review of county financials. Killian said his team is working on ways to simplify for public consumption.

“We are trying to work on a document that would be simpler to present rather than our regular budget performance report,” Killian said.

In other business, council members unanimously approved second reading of an ordinance establishing a millage rate of 190.3 mills. Three readings are required for the ordinance to take effect.

According to the draft ordinance, the total millage is broken down into General Fund (178.7 mills), County Debt Retirement (7.5 mills), and Library Operations (4.1 mills).

The total budget is $46,463,064 with $40,235,762 appropriated to the General Fund. County Debt Retirement consists of $1,103,781 while the Library Operations budget stands at $677,731, according to the ordinance.

Also at Monday’s meeting, Council Chairman Doug Pauley tried to shut down public comment for some speakers who called on the council to reinstate a second public comment session that Pauley abruptly discontinued last year after one speaker became frustrated and used profanity after some council members laughed and talked during his comments. The second comment period allowed speakers to talk about other issues in the county besides items on the agenda.

Speaker Don Goldbach called for the second comment period to be reinstated.

“Mr. Goldbach,” Pauley interrupted. “We aren’t going to keep going over this. The second comment period is not on the agenda, so you need to speak to what’s on the agenda.”

“I’m speaking to the agenda, which is on the agenda,” Goldbach said.

“But the second public comment session is not on the agenda,” Pauley countered.

“Well, the agenda is on the agenda,” Goldbach said. “And I’m speaking on the agenda.”

“Well, we’re not going to keep referencing the second public comment period,” Pauley countered.

“Well, I would still like to know how [the second comment period was removed] when the bylaws do not give the chairman the right to [remove it]. If it does, then I would like the attorney to show me where it is. I do not see where in the bylaws it gives you, Mr. Chairman, the right to remove it without the majority vote of council.”

County Attorney Tommy Morgan didn’t answer, and Pauley said nothing more.

Speakers have said reviving the second public comment session provides added accountability and transparency.

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