County asks Archer for full accounting after audit finds $738,000 in commingled surtax funds

Alachua County commissioners voted Thursday to ask the City of Archer for a full accounting after a county staff presentation described an independent audit that found more than $738,000 in infrastructure surtax disbursements were commingled with general operating funds between 2017 and 2024.

The county manager's office presented the audit findings and staff recommendations during the meeting. The board approved a motion that asks Archer to provide a full accounting of all infrastructure surtax receipts since 2017, recommends a reasonable timeline for repayment (staff recommended three years) and asks the county's infrastructure surtax oversight board to conduct enhanced monitoring of the city's surtax accounts.

Why it matters: the surtax is voter‑approved money restricted to capital or infrastructure uses. The audit's finding that surtax receipts were spent on general operations prompted county staff to push for an accounting and stronger oversight to preserve voter intent and to ensure future projects can be funded.

What county staff told commissioners Gina Peoples, assistant county manager, told the board Archer had been transparent about the audit and pledged corrective action. Peoples said staff had recommended three steps: (1) request a full accounting of infrastructure surtax receipts from Archer going back to 2017; (2) set a reasonable repayment timeline (staff proposed three years); and (3) ask the infrastructure surtax oversight board to carry out enhanced monitoring.

Dallas Lee, the City of Archer's contracted accountant joining by Zoom, told commissioners the city was taking steps to segregate surtax receipts into a separate bank account and to establish a distinct fund. Lee said Archer had just completed its 2023 audit and was working on 2024 figures; he also told the board the city faces multiple fiscal pressures, including roughly $233,000 in unpaid federal taxes and other accrued obligations.

Board discussion and next steps Commissioners pressed for clarity on repayment mechanics and for evidence the city would take concrete steps to demonstrate progress. Several commissioners asked staff to confirm whether the state would provide financial assistance under provisions for municipal financial emergency and whether the Department of Revenue or legislative auditors (JLAC) would assert oversight. Vice Mayor Bailey (City of Archer) told the board Archer was preparing a letter for the Department of Revenue and that the city welcomed state review.

The board's vote directed staff to request the accounting from Archer and to ask the infrastructure surtax oversight board to recommend enhanced monitoring measures, potentially including additional audit checkpoints and preapproval steps. Commissioners also discussed deferring any county financial assistance until the state's response to the city's request for help is known.

Where this goes from here County staff said they will report the results of the accounting back to the board and bring any recommended oversight measures to the infrastructure surtax oversight board. Commissioners said they would consider extending or modifying the repayment timeline after the city provides full detail and the state sets any regulatory or financial conditions.

Ending: what the city said Lee said Archer staff had begun segregating surtax receipts and planned to provide the county and the state a formal accounting. Archer's local officials asked for patience while they finalize the 2024 audit and pursue state help.