In Stevensville, paying off bill is a point of pride
By WILLIAM F. AST III - H-P Staff Writer
Published: Friday, April 9, 2010 1:08 PM EDT
STEVENSVILLE - "We paid off a bill," Stevensville Village Council President Lori Gibson proudly told the council on Thursday.
That may not be much of a boast in most municipalities, but it was a sign of progress in a village where a former manager has been accused of embezzling $297,000 from village coffers.
The council approved monthly bills totaling $33,923, well under the $35,000 a month spending limit imposed by an interim manager in wake of the alleged theft. Among the bills was $2,856 to Dell Computer, finishing at least one of the village's obligations.
The council also approved two policies demanded by the Michigan Department of Treasury - a privacy policy for Social Security numbers, and an investment policy.
"It puts into written policy what is good fiduciary policy," Manager Derek Perry told the council. "Essentially, you did not have a written policy to direct your officials how to invest ... The state wants these things in writing."
Once the village's problems came to light, the state stepped in to perform an audit of the village's past two fiscal years ending March 3, 2009. The audit confirmed the missing money, and the audit directed the village to enact a number of policies to help make sure that it won't happen again.
"We're checking them off as we go," Gibson told the council about the audit demands.
Former manager Todd Gardner is scheduled for trial in U.S. District Court in Grand Rapids on April 27 on the embezzlement charges. The audit showed that Gardner also allegedly failed to make some federal and state tax payments, and that got the village hit with interest payments and penalties it could ill afford.
Arrangements have already been made with the Internal Revenue Service. Perry on Thursday said state Rep. John Proos is helping the village work with the state to see whether state penalties and interest can be "reduced or forgiven."
At stake is $7,818, village Treasurer Dawn Rush said after the meeting.
wast@TheH-P.com