On July 30, 2013, the Forney City Council and Economic Development Corporation held a special work session to discuss new policies and procedures for the distribution of Hotel Occupancy Tax (HOT) Funds.
The work session comes on the heels of allegations made by Forney City Council member Andy Parker of self-serving and insider profiting of previously distributed HOT Funds to a Forney Home Town Christmas event organizer. Specifically, Parker alleged event organizer Denise Bell served herself to advertising funds for her local website – $600 in 2012 and $800 in 2011. The allegations were followed by several council members agreeing more steps should be taken to ensure accountability.
RELATED: Council members allege insider profiting and mismanagement of HOT funds
In addition to the allegations lodged against Bell, Forney City Council Member Mary Penn also addressed the members of the work session and stated, “I have a situation here and I just kinda would like to share and get your thoughts on this whole thing. For the last two years I have face painted for the Home Town Christmas and the first year that I face painted I did it for free, I took tips.”
Penn continued, “Last year, I was told that there was someone that was sponsoring the face painting and that they were going to pay me $300 and I said, oh that's great, that's fantastic. As long as Im not getting paid by the city because I knew that the city made a contribution to the Home Town Christmas. I would see that as a conflict of interest.”
“I was told that State Farm sponsored the face painting and they paid me $300 and I accepted it because that's what I was told. But I found out that State Farm wrote the check to the Chamber and the Chamber wrote the check to me. That can have the appearance that the City of Forney paid me and if that is how it happened and State Farm didn't do it, I didn't know,” said Penn.
However, Council member Penn took and cashed the check from the Chamber of Commerce. Also, in their filing of required budget reports, the Chamber did not disclose the check paid to Council member Penn nor any earmarked contributions. Penn later admitted, “how the checks flowed through, I could see how that could be the appearance of something that its not … I don't feel guilty.”
Council member Ray Stephens said, “When in doubt, you go ask the right people, am I going to be violating something here? I'm big on integrity and being open.” Penn replied, “Well I am too and that's why I shared like I did." Penn mentioned "being up front about this" but failed to disclose receipt and negotiation of the check from the Chamber of Commerce after last year's event.
Forney City Manager Brian Brooks interjected, “The purpose of the caveat at the end of that is for a certificate of affidavit [for recusal] to be filed. We are talking about a fairly complicated measure to take on one very specific circumstance. My recommendation, if you're receiving any funding from an event and the city is the sponsor of that event, you need to fill out that affidavit and you need recuse yourself from the voting, that way there is no question. If on the other hand, there is some exchange of hands about how your getting paid, reality behind it is the event itself is being sponsored by the city of Forney. So I would caution you for trying to get around that rule or work around that rule and simply refer you to that certificate of affidavit for recusal.”
Forney Economic Development Director Kim Buttram gave an example of self-serving to which Penn swiftly responded, “Well I didn't vote on anything so I don't have a concern about that.” Brooks reminded Penn that she votes on the allocation of the HOT funds.
City of Forney Mayor Darren Rozell offered his opinion on the matter saying, “If you [Penn] are going to do it [face paint] and you want to do it, I think you should volunteer and not receive any funds.”
At the last Chamber of Commerce Board Meeting on August 8, 2013, Chamber Board Members did not hold a vote to seek HOT Funds for Forney Home Town Christmas although the members did vote to submit an application for the Tourism Committee to seek HOT Funds for a 140th Birthday for the City of Forney. The FHTC Committee, which is now an official committee of the Chamber for 2013, still has until the 20th of August to decide if they will seek HOT Funds. The Chamber of Commerce Board of Directors would then need to approve their HOT Funds application.
According to a source familiar with the event, if HOT Funds are not sought, additional funding will be needed to replace the shortfalls. Last year, Forney Home Town Christmas received $15,000 from the HOT Funds.
As a result of the previous mismanagement of Hot Funds, a new HOT Grant Agreement now includes a conflict of interest section that states, “None of the Local Hotel Occupancy Tax Revenue funds hereby granted shall be paid, directly or indirectly, to a Forney City Council member; the head of any department of the City; an officer of the Entity; a member of any committee managing the disbursement of Local Hotel Occupancy Tax Revenue funds; a member of the immediate family of any of the foregoing persons; or a business in which any of the foregoing persons has an economic interest.”
All other HOT Funds applicants were also asked to re-file their applications with the understanding that the new HOT Grant Agreement would need to be entered into for HOT Funds to be granted.
The agreement also requires a complete reporting of all funds including copies of invoices, receipts, and cancelled checks.
Full disclosure: The writer is related by affinity of the third degree to Forney City Council Mary Penn.