The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Friday, October 13, 1995               TAG: 9510130559
SECTION: LOCAL                    PAGE: B3   EDITION: FINAL 
SOURCE: BY KAREN JOLLY DAVIS, STAFF WRITER 
DATELINE: CAPE CHARLES                       LENGTH: Short :   33 lines

CAPE CHARLES VOTES AGAINST SPECIAL AUDIT

In a vote taken at 1:30 a.m. Wednesday after an executive session, the Cape Charles Town Council reversed its decision to hold a special audit.

Vice Mayor Libby Thomas declined Thursday to discuss the reasons for the council's change of heart. Earlier, during a regular meeting Tuesday night, the council voted to pay an added $5,000 to have a quick, more thorough look at the municipal books because of unexpected cash-flow problems.

``We will get sufficient information from the usual audit to know the status of the town's finances,'' Thomas said Thursday.

The council initially voted for the special audit after a roofing contractor complained that Cape Charles wasn't paying its bills for the repair of a school that is being converted to a municipal center. The town had received $69,000 as a proffer from a Houston company, Brown & Root Inc., specifically to repair the roof. Brown & Root is planning a recreation-retirement community at Cape Charles.

In recent weeks, council members have questioned $16,000 spent for a new police office that was built by contractor Ken Miller, a Town Council member. They also asked about $135,000 in certificates of deposit that were cashed and added to the water and sewer revenues. On Thursday, Town Manager Dick Barton said the auditors promised that the regular audit would be completed by December. by CNB