Monday, 16 August 2010 09:31    PDF Print E-mail
Committee members replaced following dispute over funds

The City of Magnolia 4B Community Development Corporation ousted two members and installed two new ones following a dispute over a fund transfer.

At an Aug. 10 meeting, the city council unveiled a list of 4B members that were re-appointed. That list did not include former members Viren Vansadia and Mike Karm.

Karm said he felt he was not re-appointed to the committee after questioning a $100,000 transfer between the 4B and 4A Economic Development Corporation.

“We had a 4B meeting, it was a special budget meeting, so we could turn it in to city council and they transferred $100,000 and put it in 4A so they could pay construction bills on the park,” said Karm. “He (City Administrator Paul Mendes) didn’t ask anybody, he just did it on his own.”

According to 4B President Frank Parker, III, the money was transferred around July 28 and then returned Aug. 3.

“An invoice came in for the park and it was in the best interest of the city to transfer money to cover some of it and as soon as money was made available, it was transferred back,” said Parker. “As far as I can determine, we have done everything legally required to make sure the money was handled right.”

Parker added that the council and mayor appoint board members to the 4A, 4B and Planning Commission after an election occurs and there are no term limits.

At an Aug. 12 4B meeting, a resolution was passed ratifying the transfer, which City Attorney Leonard Schneider clarified was a “temporary loan” that had already been transferred back.

Karm addressed the board at the Aug. 12 meeting regarding the transfer.

“In July, $100,000 was moved from 4B to 4A without any notice,” he said. “The 4B knew nothing about it. I’d like to know why.”

Mendes said board members are not permitted to respond to questions or comments during the public comment portion of the meeting, but that the city was working on a Freedom of Information Act request documenting the transfer.

The two newly-appointed 4B members, Clyde Hunt and Gari Lynn Hessong, were sworn in at the Aug. 12 meeting.

“I don’t care if they don’t want me on there,” Karm said. “I don’t think they should be taking money and putting it where they want to and putting it back. It’s pretty simple, if they wanted to do that, they just call a special meeting and have it approved.”

Comments (3)Add Comment
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written by Jake Bolton, August 16, 2010
Interesting that if anyone questions the money in Magnolia those people are fired or removed. Too bad the people of Magnolia are so easily fooled by the incompetent people they elect to serve them.
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written by Tough Grit, August 16, 2010
Excuse me, do I understand this correctly ?? If you rob a bank, any town, any location and you return the money after it's found out then it's all right with the law ??? This is nothing new in Magnolia, that's how it's been going on for years ... Anyone remember the Court money that was removed ??? The money that the park was built with ??? Same old story, just a different month and a different day ... It's nice to know that it's legal though, proud of you Mr. Karm for standing up and asking questions... Sorry to hear that Parker was once again standing up for Williams
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written by Jake Bolton, August 16, 2010
Sounds like Parker so desperately wants to be important in Magnolia that he will go along with anything. If memory serves Parker wasn't well liked by most of the city officials or employees during his time as Mayor. Parker is just another Williams stooge, nothing new in Magnolia.

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Last Updated ( Monday, 16 August 2010 09:32 )
 
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