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NC treasurer rejects new manager for troubled Spring Lake, says he won’t pay for hire

North Carolina Treasurer Dale Folwell said Thursday the state will not approve money to hire a new town manager for financially troubled Spring Lake, saying the town’s choice “does not generate confidence.”

On Monday, the town’s board voted 3-2 to hire Justine Jones, who was recently fired from the same job in Kenly after the entire police force quit.

Spring Lake has numerous ongoing financial problems and came under state control last year. Folwell said as treasurer he will not authorize the funds to hire Jones.

“Our primary goal is to save Spring Lake from drowning and return the town to financial health and operational stability,” Folwell said in a Thursday news release. “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.”

Kenly controversy

Controversy erupted in Kenly, a small Johnston County town about 45 miles outside of Raleigh, in June after several police officers and two town administrators said Jones had created a “hostile” and “toxic” work environment.



The Town Council and the town’s attorney investigated for a month and found no evidence of anything hostile or toxic under Jones’ leadership.

In August, the council took a 3-2 vote to terminate Jones, causing some residents to cite racist undertones. The former employees who made the claims were all white, and Jones is Black.

A scene outside the Spring Lake Municipal Building Friday March 25, 2022.
A scene outside the Spring Lake Municipal Building Friday March 25, 2022. Travis Long tlong@newsobserver.com

Spring Lake hired Jones shortly after its former finance director, Gay Cameron Tucker, pleaded guilty to embezzling more than $500,000 from the small Cumberland County town. Spring Lake hired Tucker to the position despite numerous bankruptcies, tax liens and unpaid bills.

Tucker’s plea came after a state audit showed not only the missing money, but several vehicles purchased in Spring Lake without any records on the books.

‘Town does not need a distraction’

In his statement, Folwell wrote that Jones also had a rocky employment relationship with Richland County, S.C., where she was also terminated. After Richland County terminated her employment, Folwell said, Jones filed an Equal Employment Opportunity Commission complaint, which was dismissed, and then sued the county.

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

The treasurer chairs the Local Government Commission, which monitors the financial health of Spring Lake and 1,100 other units of local government.

Spring Lake provided a list of town manager candidates to LGC staff, but none of them approved a hiring decision.

“We expect the Board of Aldermen to act like professionals and to serve their constituents with the high degree of stewardship and accountability expected of elected officials,” Folwell wrote, adding, “Due to the town’s past inability to stay on course, they are under our power of the public purse, and I believe it is necessary to oppose this selection in the best interests of the community.”

This story was originally published October 13, 2022 at 4:11 PM.

Josh Shaffer
The News & Observer
Josh Shaffer is a general assignment reporter on the watch for “talkers,” which are stories you might discuss around a water cooler. He has worked for The News & Observer since 2004 and writes a column about unusual people and places.
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