By: Leela Xie

Shortly after carmaker Ford announced a major project nearby, the state of Tennessee formally took over Mason’s finances. For months, Mason battled for its own financial control after the town refused to give up its charter.

Mason, Tennessee faced losing its ability to govern its own finances in a fight with white state officials earlier this year, bringing a spotlight to the majority Black community of fewer than 1,600 people over a situation that town advocates called discriminatory.

But in May, Mason officials dropped a lawsuit they brought to Tennessee’s Chancery Court against state officials, after agreeing to more favorable terms, signaling the lengthy feud between the town and the state over racial discrimination and autonomy is ending.

According to Mason’s financial records, the town has borrowed money from its Water, Sewer, and Gas Funds primarily to support general government operations. These improper transfers have continued to occur since at least FY 2007. The town did not complete two, five-year corrective action plans (2013 and 2016) to repay these borrowings. The General Fund currently owes its utility funds $584,723.

The conflict started in February, when Mason was faced with the choice of either giving up its right to govern itself or keep control and at once start paying off almost $600,000 in debt that it could not afford.

The decision was forced onto the town by Jason Mumpower, Tennessee state comptroller, soon after the announcement that the Ford plant would be built nearby, predicted to open in 2025. The project is expected to bring $1.8 billion to the state of Tennessee and create about 18,000 jobs. Since Mason is the town closest to the plant with a sewer and wastewater system, it will be financially beneficial. This is one reason, according to Mason Vice Mayor Virginia Rivers, that the town chose to take on the debt in March.

As a result, Mason was forced to pay almost $600,000 of debt through monthly payment plans of approximately $22,000, owed to its water, sewer and gas funds that had gained since at least 2007, according to Mason’s financial fact sheet. In addition to paying off the debt, the town could not apply for grants or pay bills over $100 unless they were approved by Mumpower, who began financial oversight in March.

“We were being set up to fail,” Rivers told NBC News in March about the original repayment plan required by the comptroller.

The lawsuit the mayor and the Board of Aldermen of Mason filed against the Tennessee comptroller of the treasury accused Mumpower of racial discrimination, misuse of financial power, and violation of the Tennessee Constitution.

“This was a power grab, not a path to support the citizens,” NAACP President Derrick Johnson said. “They were seeking to dissolve the town,” he said, as the result of Mason being put under the financial control of majority white Tipton County.

Johnson said that the comptroller’s actions had racist undertones, since majority-white municipalities that were in debt, like neighboring Jellico County, were not forced to face the same ultimatum, reflecting the state’s history of targeting Black leadership.

For Mason, prior to the lawsuit, Johnson said, “democracy was not working.”

Now the town must pay back $5,000 per month, which is a more manageable payment plant than the $22,000 previously required. And instead of needing approval for every expense over $100 each time it takes place, the spending threshold increased to $1,000 and is approved monthly.

The town also managed to pay off a portion of its almost $600,000 debt, lowering it to approximately $248,000, which will be paid off over four years.

In a statement in March, Ford acknowledged the tensions but said that the situation was between the state and Mason and denied any involvement. Rivers said representatives from Ford met with her administration in April to hear Mason’s side of the story but did not offer any aid to help.

“We’ve had several conversations with Mason officials to ensure they are positioned to benefit from the economic growth we are bringing to the area, and we’ll continue to engage with Mason and other West Tennessee communities to help them prepare for potential jobs and investments for their residents,” Ford said in a statement shared with NBC News in June. “Ford is committed to being a good neighbor and providing equitable opportunities.”

During the conflict, many people on social media also called for action, starting hashtags, petitions, and fundraisers. Their efforts have succeeded in raising almost $18,000.

While this new deal may seem like a win for the town, not everyone is rejoicing. Rivers said that if Mason Mayor Emmit Gooden had not signed off on dropping the lawsuit against the comptroller, the town’s repayment terms would have not changed. She also said that the comptroller’s financial oversight will cease if the town’s budget for 2023 is approved by August.

“I am not totally satisfied but it’s better than what we had,” she said.

Mumpower released an updated corrective action plan in May with terms of agreement, one requiring the town to keep regular contact with the comptroller’s office, or it will be considered in violation of the plan.

“Mason’s agreement to a new corrective action plan is a significant step in restoring the town’s financial health,” Mumpower said in a statement released in May. “By agreeing to change its practices and work with our Office, Mason will run on a balanced budget, work toward correcting its audit findings, and cut improper borrowing. Most importantly, if Mason follows this plan, taxpayers can know their leaders are being good stewards of their money.”

When asked about Mason’s accusations of discrimination from Mumpower, the comptroller’s office said that it “proceeded diligently and in good faith to improve the financial condition of the Town of Mason so that its citizens can benefit from the services they receive from the Town,” according to a statement given to NBC News in June. The statement also said that the comptroller’s office “has a responsibility to ensure that Tennessee local governments do not fail without regard to the local government’s demographics.”

Now that the lawsuit has been dropped, the town will work to meet its financial obligations and continue paying off the debt. Mason will also move forward with investing in its infrastructure and economic development to bring business into the town for “Mason to be a beautiful place,” Rivers said.

“Hopefully, it doesn’t happen again,” she said. Because of the state’s correction action plan, the comptroller can exercise his financial authority if Mason gets “out of line at all in any way,” she said. “But hopefully we don’t have to get to that point,” she added.