Town’s Future Uncertain; No One Kept Records

Officials are scrounging for receipts and other papers that will give them an idea of this city’s financial status. It appears that for the last two years, no one remembered to keep records on such things as water bills, insurance and personnel.

“We found the books, but there were no entries in the books,” Reeves County Dist. Atty. Jack McGowen said.

At worst, McGowen said, the lapse could lead to legal dissolution of Balmorhea, a town of 575 residents about 100 miles southwest of Odessa. “If they’re not careful, they’re not going to have a city anymore,” he said.

The municipal secretary, Julie Campbell, submitted her resignation to the City Council in early June, and the record-keeping problem was discovered later that month, Councilwoman Dora Machuca said.

“There were a few things missing when I left, but I understand they found them,” Campbell said Saturday. “No city officials have contacted me.”

Information on payment of city water bills was not kept, insurance coverage of all but one of the city’s vehicles was allowed to lapse and employee records, including job descriptions, are non-existent, McGowen said.

If an uninsured city vehicle is involved in an accident and the city is found liable, “real estate owned by the taxpayers within the city limits could be liable for a pro rata share” of the judgment, McGowen said.

“If the city gets in a position where it is insolvent, it can be forced into bankruptcy just like an individual,” he said.

Campbell said she worked for the city for 3 1/2 years and resigned “because I wanted to leave.”

As to whether she kept records, she said: “I have nothing to say. My husband and I just want to leave this behind.”

Machuca said she and other council members asked McGowen in June to investigate whether any laws were broken in the failure to keep records.

“We found no criminal intent on anybody’s part, but we found what possibly is a whole lot of negligence on somebody’s part,” McGowen told the Odessa American.

The council has asked C. T. Gray, the city water commissioner, to establish a new accounting system and to piece together the old one.

“We’re working with the old bank statements and all the records that we have,” he said. “It can be done, but it’s just going to take some time.”