WM City Council tables money to boys, girls clubs

WM City Council tables money to boys, girls clubs

Concerns over accountabil-ity, financial reporting spark move to halt money disbursement

news@theeveningtimes.com

Funds from Southland Park Gaming & Racing money earmarked for the city's four boys and girls clubs, traditionally split four ways among the two boys clubs and two girls clubs in West Memphis, were unanimously tabled after a motion made by Councilwoman Helen Harris during the March 16 West Memphis City Council meeting.

“There are a few of us that want better reports,” said Harris. “We know a few of them have not been accurate.”

Tabling the distribution effectively froze $72,000, putting the $18,000 for each club on ice for at least three weeks until the first council meeting in April.

The Crittenden County Boys and Girls Club, the J.W. Rich Girls Club, L.R.

Jackson Girls Club and the Wonder City club must wait and see what decision the city council ultimately makes.

“It’s your decision to make, if you want to continue with it in those percentages,” said Mayor Bill Johnson. “It’s traditionally been split four ways.”

In the last two years proposal to improve accountability and financial reporting from the clubs to the city has been proposed.

Some city councilors doubt the veracity of the reports.

Even so city council has thus failed to take action to improve acceptability and restore trust.

One proposal was written up by City Attorney David Peeples at the request of City Council but it never saw public discussion.

The city leases the ground or the building to each club for one dollar a year.

Agreements vary by club.

Peeples has discussed with city council bringing each club agreement up to date and more uniform if it revises the current ordinance. Peeples last distributed the current ordinance governing fund distribution to the youth clubs at city council in October of 2015. It called for timely, quarterly reports and statements, and for each club to hold a $10,000 bond. The ordinance is outdated, as recent quarterly distributions have amounted to $18,000 to each club and changes made in 501(c)3 requirements.

Peeples proposal called for clubs to hold million dollar liability insurance, and moved reports to twice a year. Reports due in June would include daily attendance and total club membership. Audited financial reports and tax form 990 rounded out the required annual information.

One club, The Crittenden County Boys and Girls club already files reports exceeding the proposed changes at the insistence of it’s board and bylaws.

Currently the city leases the ground or the building to each club for one dollar a year. Other agreements vary by club.

“It would tell us who is on the board and in charge and who is making money and how much,” said City Treasurer Frank Martin. “We don’t know that right now.” Martin’s plan would offer two pay outs per year. The clubs are used to four distribution times now but the amount disbursed is still based on the total collected from Southland.

Sometimes clubs have banked on future proceeds and stopped paying for city utilities. One club in particular, the L.R. Jackson Girls club established this as a habit. Martin docks the overdue utilities and then issues the balance of the share to the club. It’s procedure born of necessity as by law utilities cannot be offered for free. That way of operating is not on the books and the option disappears under Martin’s option to the plan. With two pay outs every six months, utilities coming at 90 days past due, L.R. Jackson would have to pay it’s own light and water bills.

Because of the current reporting is so vague its tough for the city to know who the key holders are and who works at the club and how to contact the club.

“I couldn’t tell you who is in charge at certain clubs except they show up for the check,” said Martin.

Recently an unprecedented situation arose concerning club operations when the L.R. Jackson director Chancey Rainey was arrested June 9 on felony drug charges for allegedly falsifying prescriptions for Xanax and Lortab. Rainey remains as club director and daily staffs the center, opening it to children. In the meantime her next court appearance is scheduled

March 24 with a subsequent trial date beginning

April 17.

On going controversy at the L.R. Jackson erupted during a community meeting in the spring of 2014 when parents complained the club wasn’t regularly open after school. At that time parents had major concerns about the use $18,000 dog track funds distribution.

The two incidences served to create mistrust on city council.

“I want to know where the money is going,” said Councilman Wayne Croom. “ I want to know what kind of money is there and what is being distributed, where it is going.”

By John Rech