On Monday night, Anmoore's town council revealed the town is in outstanding debt due to unpaid taxes.
Council members discussed an audit done from 2008 to 2012, in front of a packed council chambers.
They said it showed Anmoore currently owes an estimated $250,000 in unpaid taxes, insurance and penalties to the IRS and State.
Members also said Town Manager and Police Chief, Christopher Magee told them he will resign in September.
Officials are waiting on documentation and receipts to see just how bad the financial situation is.
"As a council person it's my job to represent the town and I don't feel that I can do that without knowing where our money is. We just want it fixed," said Council Member Heather Gillespie.
Anmoore Mayor Eddie Hardman said, "I don't feel there is any kind of wrong doing. It was just a matter of filing the taxes incorrectly."
The town was cited for 22 violations. Council will continue to discuss the issue at its next meeting on August 19.