State auditor’s findings, projected $1.5M shortfall prompt Hope Mills residents to press board for answers

A state auditor’s presentation that outlined a projected $1.5 million decline in Hope Mills’ fund balance drew sharp public scrutiny at the Town of Hope Mills Board of Commissioners meeting on June 1.

A recorded statement from the Office of the State Auditor said the town spent roughly $1.7 million from reserves in the last fiscal year — significantly more than the roughly $500,000 the town typically budgets from reserves — and flagged instances of budget amendments that limited transparency and several personnel pay increases that lacked required documentation. The auditor’s office recommended adopting a formal fund-balance policy and strengthening internal controls.

“What we found raised serious concerns about the town’s financial health and oversight,” the auditor’s recording said during the meeting. The video added that not all tip-line allegations were substantiated, and that town leadership had acknowledged the findings and committed to corrective actions.

Public commenters at the meeting said they wanted specifics on how the town will cover the shortfall without imposing further taxes. “Please tell the taxpayers where this money is going to come from without burdening our taxpayers with a third tax increase,” Elise Craver told the board after the auditor’s statement was played.

Ron Kasinyak urged the board to protect public land and questioned why the town would assume maintenance responsibility that may primarily benefit a private developer under a previously signed memorandum of understanding. “Leave our green space alone. No pavement, no additional traffic, no taxpayer-funded roadway for private developers,” Kasinyak said.

John Martinson, who reviewed historical tax rates at the meeting, urged officials to consider budget cuts rather than raising the tax rate. Several other residents said committees and discretionary items should be pared back before asking taxpayers to pay more.

Town staff and the mayor told residents the board had acknowledged the auditor’s recommendations and would work on corrective steps. The mayor also reminded residents that the board will continue budget workshops and hold a public hearing on the operating budget on June 8.

The board took no formal action tied to the audit at the meeting; it approved routine consent items, authorized an audit contract for the coming fiscal year, and scheduled additional budget work sessions as it develops its response and a proposed budget for adoption later in June.