It took nearly six months, but Thursday Carson City Mayor Bob Crowell and city supervisors finally established new ground rules governing the way our Development/Redevelop-
ment Authority disburses public funds to local business people and developers.
Supervisors were responding to a November 2008 audit that questioned how the city was handling more than $1 million worth of redevelopment funds. After all, with our state facing a half-billion-dollar budget deficit and city officials scrambling to make ends meet, we should be following the money to assure that our hard-earned property and sales tax dollars are being spent wisely.
Former city auditor Sue Johnson found that the city lacked "clear and consistent (operating) policies and procedures" and that "controls over ... (redevelopment) programs/projects were not sufficient to prevent management from circumventing established policies and procedures." Translation: Joe McCarthy, Business Development manager and his staff were playing fast and loose with taxpayer funds.
In her 2008 audit, Johnson cited three questionable expenditures: (1) $67,780 to the First Presbyterian Church, (2) $41,398 to D'Vine Wine and (3) $30,328 to the Carson Mall, and said she couldn't locate properly completed applications for those projects. According to the new rules, the city can't disburse redevelopment funds without a valid application, and applicants must convince supervisors that they lack the money to complete their project and that private funding isn't available.
Ironically, shortly after approving the new rules, supervisors decided to spend $53,500 on a project that probably doesn't meet their own criteria. I refer to a proposal by Division Street Enterprises to renovate an older apartment building at 503 N. Nevada St., and congratulate Supervisor Pete Livermore, who called for "a much broader spectrum of oversight," for voting against the project. He also said some redevelopment procedures still are too secretive, and I agree.
I'm not casting aspersions against this particular developer, nor am I accusing anyone of anything. Rather, I'm using this case to reinforce the need for close scrutiny of the way Carson City spends our tax money.
With a 2009-10 development/redevelopment budget of $1.6 million, supervisors must make sure that office is transparent and accountable, especially as they struggle to fund adequate police and fire protection. It's also interesting to note that city budget projections are based on the assumption that property tax revenues will increase by approximately $1 million, putting an additional burden on property owners.
As one of those property owners, I urge Mayor Crowell and supervisors to exercise proper oversight over city expenditures as they prepare to raise local taxes.
- Guy W. Farmer has been a Carson City taxpayer since 1962.