‘Where did the money go?’ Frustration boils over in Mount Olive

MOUNT OLIVE — The ongoing problems regarding the state-imposed sewer moratorium on the town and the recent release of a scathing audit by the N.C. Auditor’s Office, which discovered numerous mismanagement issues within town government, were front and center during the public comment period at the Mount Olive Board of Commissioners on Monday evening.

Mount Olive citizen Dan McPhail told the board that there had been a $5 million allocation toward the sewer problems in 2020, followed by an additional $15 million allocation two years later, to which the state contributed an additional $10 million.

“That’s $30 million, and we’re still under a sewer moratorium, which is increasing our taxes, and which is making new businesses not come to Mount Olive because they can’t attach to the sewer system,” McPhail said. “It’s creating a slack or deficiency in our growth.”

McPhail asked if the original engineering company contracted to repair the issues was under a performance bond to guarantee their work.

“If it was, why wasn’t the work completed and guaranteed?” he asked. Mayor Jerome Newton responded to McPhail’s question, adding that they will find more information, “and we’ll get back to you.”

Another town resident, Billy Wilkins, turned to the audience during his comment period and said, “I want to address you all.”

Wilkins added to the list of funds previously allocated toward the sewer issues.

“Back in the early 2000s, the town borrowed $13 million to build a tree farm,” Wilkins said. “A few years back, the tree farm was incinerated because it didn’t work. All the trees died.”

The tree farm was to be used to spray some of the sewage from the plant to utilize natural absorption.

According to Wilkins, the town signed an $8 million contract in December 2022, which was intended to address infiltration and inflow issues identified as the most significant problems at the troubled sewer plant.

Like McPhail, Wilkins questioned the town’s handling of such large appropriations.

Still addressing the audience, Wilkins concluded his remarks by saying, “I implore you to look at your next board that you have to vote for. These people are making million-dollar decisions up here.”

The recent N.C. Auditor’s report on the town was also addressed during the public comment period by resident Cindy Bell. She expressed frustration that the town had not addressed the airport finances in the report before now.
“In May and June of 2024, more than a year ago, during the budget process, it was pointed out to this board, not a previous board, inconsistencies in the airport budget,” Bell said. “They were asked (by the citizens) not to approve the airport budget until they understood the expenditures and what was happening there. They turned a blind eye to it and it was approved.”

Later in the meeting, the board approved a resolution requested by interim town manager Glenn Holland, authorizing TRC to prepare a funding application for water treatment system renovations. Holland told the board the new firm had already advised him of potential new funding sources the town could seek help from in tackling the ongoing sewage treatment plant challenges.

Mayor Pro-Tem Barbara Kornegay thanked Holland for his work in attempting to find a reasonable and effective solution to the sewage moratorium.

Gary Whaley, who operates a flight school at the airport in association with the University of Mount Olive, addressed the board and asked that everyone consider the good things happening at the airport and encouraged board members to visit the flight school to see its success. After the meeting, Whaley told Mayor Newton he was concerned the negative news about the airport could affect recruitment for the flight school.

In other business:

• The board approved a contract with CPA Beverly Stroud to reconcile the town’s bank statements and bring the financial records from July 2024 through June 2025 current.

• The town issued a proclamation honoring Greg Wiggins for his years of service to the town.

• The board also agreed to move the November board of commissioners meeting from Nov. 3 to Nov. 10 due to the elections.