JOHNSONVILLE, S.C. (WPDE) — The Florence County City of Johnsonville is facing some pretty serious financial hurdles that could lead to the closure of the town’s golf course, which reopened nearly three years ago.
Johnsonville city council members have met four times this month.
At their April meeting, members really learned of the severity of their financial woes.
The minutes from that meeting state that Johnsonville has been essentially moving funds from one department to another.
Here’s an excerpt from the minutes:
“A breakdown: General fund owes the water fund $987,279.00; Golf Course owes the water and sewer fund $955,601.00, municipal; Complex owes the sewer fund $282,560.00 and capital projects owes sewer fund $67,966.00 total internal debt of $2,293,406.00. Marc Wood made it very clear to me that we had to figure out in this budget how we are going to pay it back. The water fund is owed in total $1,810,131.00 sewer fund is owed $483,275.00. The water and sewer funds owe on the 2017 Revenue Bond $4,040,000.00 this bond is being paid back by the water and sewer funds. And the Municipal Complex/Golf Course owes $2,475,000.00. This is what we have been doing and will continue to do freeze nonessential spending, hiring, travel and capital outlays. Require administrator approval for all purchases above a defined threshold that is defined in the ordinances. Suspend new contracts unless essential for health, safety or compliance, review current cash position and 90-day projections, prioritize payroll, utilities, debt service, and public safety, this is the most important one according to Marc, we have got to service the debt., delay any discretionary projects and equipment purchases., Ensure all required audits/compilations are complete and submitted for state fund withholding. Implement corrective actions from prior audit findings. Those are things we already knew about.”
However, the Interim Johnsonville City Administrator Jimmy Brown said that may not have been the best option.
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Brown said their accountant has suggested possibly closing the city’s golf course as an option to save money. That option is pretty troubling to community members.
“I am surprised on that because I thought the golf course would stay open forever. Really,” said Abraham Brown.
Interim Administrator Brown said the town isn’t doing any excessive spending and everything is on hold to help save money.
ABC 15 asked what projects the city has halted or stopped to help balance the budget during this financial crisis.
Brown said upgrades to a lift station won’t happen right now and they’ve downsized improvements to the wastewater treatment plant.
The news doesn’t get any better for the small town.
ABC 15 learned the city hasn’t filed its 2024 yearly audit to the South Carolina State Treasurer’s Office, which is required every year.
Officials with the Treasurer’s Office tell us they’re withholding $311,439.81 for Johnsonville.
Brown said the accounting firm advised that they would have to take a very close look at the Johnsonville Police Department to determine how much of it the city could afford to operate.
Some community members are just in disbelief at the town’s financial situation.
“How does it happen if the if the money’s being done, spent right. And used right, then they shouldn’t be in, in financial trouble. I that’s the way, I think, I don’t know,” said Tonya Richardson.
Johnsonville Mayor Dipen Khambhaita said they met today with their legal counsel, and he’ll get back with us regarding the town’s financial status.