04/09/07 Community and Economic Development Committee Minutes

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April 9, 2007 Community and Economic Development Committee Meeting Minutes Page 4 procedures are in place. Mr. Meyer stated that he is confident that the under the new systems which are in place that "there is a zero chance of another embezzlement". He noted that he believes that it is "time to move on"; noting that there are differences a# opinions. DTSB sees the downtown as the core of the city and its economic engine. It should be known far its hospitality, safety, and the many services provided by the ambassadors. Mr. Meyer stated that it is appropriate to respond to the Council Members concerns and is open to questions. He added that many members of the Board are present who broadly represent the community. Each are "committed emo#ionally and economically". Counci[ Member Dieter noted that a letter was sent to Mr. Meyer dated Apri[ 4t" requesting specific information and would like an update. Mr. Meyer stated that he would like to hear feedback from the Council. Upon further questioning by Council Member Dieter, Mr. Meyer stated that he would have the information requested in that letter in a week. Dr. Varner stated that he would like to see a detailed budget for 2007 rather than just the proposed fiscal plan. He noted that an "enormous amount of money is handed off with precious little oversight". In acknowledging the presence of many of the Board of Director members and the interim Directors, he questioned the policy of utilizing property to pay off debts and requesting copies of the Board's authorization to do so. Dr. Varner stated that he preferred that the monies be in the hands of the City subject to specific appropriations, and that this was not a reflection on the people standing here today. With regard to the civil actions, Dr. Varner suggested that a 1099 Miscellaneous Income form be given to the former DTSB employee so that the IRS could review the situation. He also questioned the various amounts charged for accounting fees of $29,000 and $30,000, Someone in the audience noted that a 1099 has already been sent. Mr. Meyer stated that a budget is predicated on the sources of income. He stated that he could not address the 2004 accounting fees today; however the 2006 accounting fees included the evaluation process related to the embezzlement. Council Member Kelly hoped that there would be as much money recovered as possible. Mr. Meyer stated that $50,000 has been received from their insurance company and they hope to garnish any future wages which the former employee may have, noting that this may be a challenge. Council Member Kelly noted that this has become a $150,000 lesson.