Archer residents clashed with each other and the city commission Monday night over the city’s financial problems.
The city in southwest Alachua County is three months into a forensic audit that examines its financial records for potential fraud, misconduct or other irregularities.
Archer’s account specialist, Cindy Thomas, manages the city’s financial records. Her responsibilities include tracking payments, maintaining financial records and ensuring Archer’s accounting is accurate and organized.
When Thomas stepped up to the podium to deliver an update on the audit, she revealed that Archer owes the Internal Revenue Service approximately $177,000 in employment taxes.
The Internal Revenue Service website states, “Individuals who serve as public officials are government employees. Therefore, the government entity is responsible for withholding and paying Federal income tax, social security and Medicare taxes.”
The shortfall in employment taxes represents a large sum for the city of 1,140 people. Its 2024-25 adopted budget totals just over $1 million.
After Archer’s city staff adopted a new accounting system, Edmunds Govtech, last September, Thomas has encountered major issues with the software. She has resorted to supplementing its use with QuickBooks, another accounting software.
As a result, the city failed to pay the IRS the taxes that were taken from the paychecks of city employees, including the commissioners.
Thomas said the employee’s taxes were never paid because of Edmunds, the new software system. Neither Thomas nor the commission specified how the issues created by their accounting software caused the oversight.
Commissioner Joan White said she believed Thomas.
“If it's because of Edmunds, the money should be there, and it’s not there,” White said.
Thomas said the city had already spent the money that should have paid the payroll taxes.
White told Thomas she should have informed the commission as soon as she realized they did not have the money to pay the IRS. When Thomas said she did inform the commission, White quickly turned to her fellow commissioners, who also said they were not notified.
Thomas nodded and shook her head as the commissioners spoke.
“This is on us,” White said, “As much as it is (on) her (Thomas) and the man that was sitting here before,” referencing former city manager Charles “Tony” Hammond, whom the commission fired last month. At the Sept. 30 meeting following Hammond’s termination, Deanna Alltop was selected as interim city manager. According to Commissioner Fletcher Hope, she has previously served in the interim role.
One involved resident, Karen Fiore, questioned whether the commission should continue to solicit costly services while the city grapples with its debt.
Fiore is a rates and economic analysis manager for Gainesville Regional Utilities and has over 25 years of experience in finance. Because of her background, fellow community members urged Fiore to assess Archer’s finances. When she did, she became concerned.
In a meeting on Sept. 16, Fiore volunteered to redo Archer’s budget. The city commission agreed to use her budget instead of Hammond's. Three days later, the city commission voted to terminate him.
During public comment on Monday, Fiore approached the podium to discuss the cost of soliciting services from the North Central Florida Regional Planning Council with regard to Archer’s extensive debt.
In response to Commissioner Fletcher Hope, Fiore said, “I'm not sure if we understand how bad that was. You stole over $87,000.”
Mayor Iris Bailey interjected, “We did not steal anything.”
“Yes, you did,” Fiore said.
The heated exchange ended with Bailey reiterating the city’s public comment rules to Fiore.
The 17 community members at the meeting watched Bailey and Fiore’s back-and-forth with wide eyes.
Lizzie Jenkins, a lifelong community member, addressed Fiore’s accusation.
“I love Archer. I just don’t like to hear the word stole,” Jenkins said. "We are here to help each other… Don’t come here and accuse my commissioners of stealing.”
White followed Jenkins’ statement to defend Fiore.
“She’s right,” White said. “We inadvertently stole from our employees.”
“Well, that is your opinion, and that’s her (Fiore’s) opinion,” Bailey said.
The third time Fiore approached the podium during the meeting, she said the commission did not like to hear the facts, which garnered applause and snarky remarks from the audience.
Others from the community stepped up to urge the commission to defend Fiore and urge the city commission to do something about Archer’s financial crisis.
Bailey then reiterated how city commissions in Florida operate.
Florida’s Sunshine Law prohibits government officials from communicating with one another on matters that could impact the people they represent. This means that any information revealed in a meeting is new to everyone, including the commission.
“We are hearing this. We are getting this information just like you just got it,” said Bailey.
Currently, the commission still needs a plan to pay off its debts. Thomas said she intends to create a payment plan; however, the commission and city accountant specialist cannot take action until the audit is completed.
“Don’t attack us as if we are pocketing money, stealing money,” said Commissioner Marilyn Greene, “… We are victims, not thieves.”
