State board that controls Spring Lake finances won't pay to hire new town manager; choice 'does not generate confidence'

The state Local Government Commission, which controls the finances for the troubled town of Spring Lake, will not approve funds to pay for the hire of a new town manager.

On Monday night, the Spring Lake Board of Aldermen voted 3-2 to hire Justine Jones, who was ousted from a similar position in Kenly after a little more than a month on the job.

State Treasurer Dale Folwell said, “Our primary goal is to save Spring Lake from drowning and return the town to financial health and operational stability. New and unsettling information has come to light about the past employment history of the individual who was offered the job. That information does not generate confidence that she is the right fit at this time to lead Spring Lake.”

Jones left Kenly in August when the town council there terminated her contract. The Kenly chief of police, four officers and two town administrators accused her of creating a toxic work environment.

Folwell noted that Jones' employment history included being terminated by Richland County, S.C. She sued that county after her dismissal.

“The town does not need a distraction from the important work they are doing to return the town to fiscal health,” Folwell said.

Jones told WRAL News, "I won't be ready to make any statements until after the town and I secure an agreement, if one is secured."

The Local Government Commission took control of Spring Lake's finances in October 2021, citing concerns that the town would default on debts. At the time, the Spring Lake budget showed an estimated deficit of $1.2 million.

The budget crafted by the Local Government Commission that took effect in July for 2022-23 is balanced at a little more than $8 million, with $544,994 going to service debt.

Just last month, a former finance director for the town of Spring Lake pleaded guilty to embezzling more than $500,000 between 2016 and 2021.

Last summer, town offices were closed temporarily and State Auditor Beth Wood said there was leadership lacking on the board of aldermen.

Neither Jones nor her critics has offered specifics about her time in Kenly.

She has said, "The allegations made against me were timely and thoroughly vetted by independent sources and there was no such finding of wrongdoing by me or my office. The decision to not communicate the entire story and publicly share the findings of the report is most unfortunate."