SHIRLEY, Ind. -- State auditors are questioning the town of Shirley for possibly giving special treatment to a council member delinquent on his water bills for several years.

David Carnes owed $474.52 as of May 2010, according to the State Board of Accounts audit released this month, but his water has not been shut off.

6News' Kara Kenney learned Wednesday that town council members have the last say as to who has their water service cut.

"The practice for timely payments and shutting off customers for nonpayment has not been enforced consistently to all customers," read the SBOA audit. "We are unable to find a written policy concerning collection procedures for delinquent accounts receivable. Because there is no written policy, we were unable to determine if customers were being treated equitably."

Auditors said the problem has persisted for the past five years.

Clerk Treasurer Marla Kemerly said she was concerned about the audit's findings, but denied giving Carnes any special treatment.

"No, no that's something I can't do as a clerk," she said.

Utility Clerk Phyllis Hedrick also denied favoring Carnes, and said it's up to the town council to keep someone's water on.

"I have to do what (the council members) tell me to do," she said.

Carnes spoke with 6News over the phone while on duty with the New Castle Police Department on Wednesday.

"I requested to make payments to get caught up, and that's what I'm doing," he said, adding that other delinquent water users in town can also work out payment plans.

Carnes denied using his influence on the council to keep his water on.

Town officials said they are working on a new policy that will lay out when a customer's water can be shut off. One hundred customers in the town of 800 are delinquent, records show.

All three town council members were out of town on Wednesday.

The town of Shirley is in both Henry and Hancock counties.

More Information:

Town of Shirley 2006-2007 Audit

Town of Shirley 2008-2009 Audit