Legislative auditors report town of Gilmore's highway turnback withheld for nonpayment; funds to remain withheld until repaid

The standing committee on counties and municipalities reported that the town of Gilmore failed to comply with Arkansas Code regarding repayment of street turnback funds and that the state treasurer will continue withholding the town's highway revenues until the balance is paid.

The matter is significant for local governance because turnback funds are highway revenues distributed to municipalities, and continued nonpayment may lead to further administrative or legal steps to recover balances.

Senator Stone, delivering the committee report, said the treasurer will withhold the town's highway revenues because Gilmore had not repaid funds as required. Senator Love asked whether the turnback had been held for two consecutive periods and where the town stood in the escalation process. Joe Archer, staff, replied that Gilmore's funds were withheld in January, the town had not responded, and the treasurer would continue to withhold funds until payment in full. Archer also said the town had previously entered an agreement for repayment but failed to comply with that agreement.

The committee voted to adopt the counties and municipalities report by voice vote. The committee also noted continued oversight of other entities for compliance with water and sewer audit requirements and that some deferred reports would be reviewed at the July meeting, with subpoenas requested for absent officials in specific cases.

The committee's direction was to withhold highway turnback funds to compel repayment and to request further documentation or attendance by municipal officials at future meetings where required.