Alma Webb, a Sumner County resident, told the county commission on June 5 that adopting the county’s so-called 1981 Financial Management Act could require restating 12 years of annual reports and prompt investor litigation under the federal Securities Act of 1933 and the Securities Exchange Act of 1934.

Webb said the 2012 Financial Management Act already applies and cautioned that switching to the 1981 law now “could affect our credit ratings by trying to restate 12 annual report[s],” a change she said could let bondholders seek repayment or other remedies. She added the county should avoid a national search for a finance director and instead hire candidates familiar with Tennessee accounting and law. “If you guys wanna send up a $60,000 grant,” Webb said, “so they will not be the first government to waste money.”

Webb also urged the county to follow the 2012 Financial Management Act’s procedures if that is the governing statute and said the mayor would oversee any search for a finance director under that law. She warned that a restatement could create a mismatch between previously issued bonds’ interest rates and current market rates, potentially creating investor demand to unwind past transactions.

Her remarks were made during the meeting’s public-comment period; commissioners did not take a formal vote or direct staff to adopt the 1981 Act during the meeting. Webb recommended local hiring and said county staff such as David Lyon have practical procurement experience she considers valuable, even if they are not attorneys. She concluded by urging commissioners to “look at the approach of how this is happening because I think that we just claim the fire and we . . . mess[ ] with our credibility and the quality of our annual report.”

No formal action was recorded on Webb’s suggestions at the June 5 meeting. The commission’s subsequent agenda items addressed minutes approval, payroll implementation timing and a sheriff’s purchasing exception.