OLD ORCHARD BEACH — Edith Belle Libby Memorial Library employees have agreed to fill out the necessary employment forms today that will allow the town to start processing the library’s payroll and keep the library in operation.

In March, it was discovered that there was an alleged embezzlement of funds from the library, which is currently under investigation by the police and the Maine Attorney General’s Office.  Shortly after, Town Manager Mark Pearson asked the library to hand over financial records so the town could administer the payroll and billing. It had been past practice for the library to use a bookkeeper and payroll service, and the town would give the library quarterly payments.

Library officials asked the town manager to first sign a memorandum of understanding that would assure the town would administer the payroll and operations, and the board of trustees would run the library. The library is a quasi-municipal organization with a board of trustees and bylaws.

The town manager had not signed a memorandum of understanding, and the library’s last payment from the town had been in early January. Library officials said funds could only sustain the library until May 9.

Library officials and the town council met Tuesday night to discuss financial matters.

“I think we are all in agreement that it would be good to have this memorandum in place, so we know where we are,” said Town Council Chairman Bob Quinn at Tuesday night’s meeting. He said revisions needed to be made, and it had to be reviewed by legal counsel before the council could vote on it.

Library officials handed over some financial documents Monday, but had not handed over the I-9 forms needed to administer payroll.

Toward the end of the nearly three-hour workshop, library officials agreed employees would go to the town hall this morning and fill out I-9 forms, which verify that employees are citizens or foreign citizens with the authorization to work in this county, and W4 forms.

Pearson said once the paperwork is in place, it should take a few days to get the payroll processed.

There was a question of whether the town should make copies of current I-9s or if employees should fill out new ones.

Pearson said he thought the proper thing to do would be to have employees fill out new I-9s and give a certified copy back to trustees so both entities would have same form in case of audit. If I-9s are not on file, there could be fines of up to $11,000, he said.

Councilor Robin Dayton said she didn’t understand why it was so difficult for the library to provide the forms to the town.

“It’s astounding to me that this is an issue,” said Dayton.

Library Board of Trustees President Jerome Plante asked the library’s board to do as the town asked and fill out the forms.

“It’s just a piece of paper,” he said. “And we can get it done tomorrow morning.”

There was concern among trustees on who would be listed as the employer on the forms.

“The I-9s need to be signed by the employer,” said Board of Trustees Treasurer Doris Harris. “The library is the employer.”   

Dayton and Councilor Michael Tousignant said they weren’t disputing that.

Tousignant got consensus from the library officials to have employees sign the document. He said the memorandum of understanding the town is considering confirmed that the board of trustees would continue to run the library.

— Liz Gotthelf can be contacted at 282-1535 Ext. 325 or egotthelf@journaltribune.com.