The mayor of Whitesburg responded to findings in a audit report taking the city to task over several finance issues.

Mayor James W. Craft told EKB News that the report, released Wednesday, does not accurately reflect the city’s financial situation. He added that several of the findings in the audit report released by State Auditor Mike Harmon’s office are misleading and not entirely factually-based.

Among the findings were that Craft operates his law practice out of his City Hall office. Craft said that issue is a well-known fact in the city, and one the city council has approved. He said he pays the city a monthly rent for use of the office and certain equipment in the operation of his law practice.

Craft also said he earns less than $10 per hour in his service as mayor, and that the city council approved his and his family’s health benefits due to his low rate of pay coupled with his standing as an “officer” of the city. The audit report said Craft had received money from the city to cover the cost of a family insurance plan, while other city employees were limited to single coverage.

Craft said the audit’s finding regarding delinquent utility bills is inaccurate.

The report said the city’s water and sewer service currently has more than 1,500 delinquent accounts, owing more than $350,000. Of those, 20 percent are 90 days or more past due, and 29 bills were for over $2,500 each. Those owing past-due accounts include one city council member and three city employees.

Craft said many of the past-due accounts are for customers no longer connected to the city’s water system, and many of those accounts are for individuals who are now deceased. As for the city council member with an alleged past due amount, Craft said the business property alleged to be the responsibility of council member bears that person’s name, but is not owned by them.

Craft was also unapologetic about the city’s use of $35,000 in funds collected through licensing fees for the city’s Alcohol Beverage Control for the purpose of holiday celebrations, including $19,000 for fireworks and entertainment for Whitesburg’s 2015 Independence Day celebration. Craft said the money helped pay for events that brought visitors into the city who patronized city businesses and promoted tourism, while also honoring the nation’s birthday.

Craft said areas cited in the audit warranting fixing will be addressed by the city.

The original story featuring a digital copy of the audit report can be found here.

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