Aug. 8—ALDERMEN HAVE authorized an independent audit of the financial records of Intown Manchester after city officials reported they haven't seen financial records documenting the group's activities for several years.
"This isn't coming after anyone," said Mayor Joyce Craig. "It's not saying there's any wrongdoing. It's asking for financial information, that the contract that the city has with this entity be abided by. And, for whatever reason, the information has not been forthcoming."
Intown Manchester is a nonprofit private 501(c)(3) organization working in cooperation with the city to increase downtown's competitiveness and "affirm Manchester's position as an economic leader" of the region through business support efforts like marketing, communications and event production.
The Business Improvement District is funded by a surtax placed on properties within what the city designates as the Central Business Service District. Sara Beaudry is Intown's executive director.
Sharon Wickens, the city's finance director, said Manchester officials have been asking Intown for financial information "for quite some time, at least since May."
"Per RSA 31:123, we have a fiduciary responsibility to get an accounting of all expenditures," Wickens said.
Wickens said Planning Director Leon LaFreniere asked for that information, and "we have not seen it."
Wickens said she and others were initially told by Intown the city would have the information by the end of July.
"Friday (July 30) we received a letter saying they hired somebody (to perform an audit)," Wickens said. "They are asking for another 30 days to get the records in order. We're all in agreement that we want another set of eyes to go in.
"We have seen nothing for years, we can't seem to get anything...if they go in and say there's just a couple mispostings, excellent — we've done exactly what we're supposed to do. But if there's any type of a problem, again we're doing everything we're supposed to."
Alderman At Large Joe Kelly Levasseur said he spoke with Beaudry last week. He said she told him Intown had hired Nancy Lebeau, of EN Business Solutions in Lawrence, Mass., at a cost of $3,000 to audit the organization's records from 2017 to 2021.
"She said they found an auditor that is qualified, so there's no reason for us to deal with it," Levasseur said. "I don't know why we would be getting ourselves involved in that."
In a memo to LaFreniere dated July 29, Lebeau wrote that she discovered numerous bookkeeping recording errors during her initial review.
"Many of these errors have already been corrected by Sara Beaudry, (Intown board member) Norri Oberlander and myself," Lebeau wrote. "However, even though we have been working diligently to correct them within the original 30-day deadline, there are still numerous posting errors, primarily in the salaries and employee benefits accounts, that will take additional time to address and update the corresponding reports.
"It is important to note that in my professional opinion that these are strictly posting errors and I have found no evidence of misappropriation of funds or wrong-doing," Lebeau wrote.
Levasseur asked why Intown's board of trustees or chairman hadn't requested an audit.
Alderman Pat Long — who serves on the board — said the board has not met recently and currently is without a chair.
Long said board members had yet to be told an audit was being requested by the city.
"I recommended to Sarah that she notify the board that there's an audit coming," Long said. "The city's never followed the contact or the bylaws, so the mayor's office picked up on that and rightfully so.
"We looked at the contracts and the bylaws — which I've never looked at before — and there were a lot of things that weren't being followed, so we need to bring that up to date."
Craig and City Solicitor Emily Rice said Central Business District Funds can be used for the audit.
Aldermen voted to authorize an audit. Levasseur was opposed.
Parking waiver denied
Aldermen voted last week to receive and file a request from Hillsborough County Attorney John Coughlin to waive parking fees for employees of his office at 300 Chestnut St.
In a letter to the city, Coughlin wrote that 24 employees of the Hillsborough County Attorney's Office pay $60 a month to park in the Pine Street lot behind the federal building. One employee pays $55 per month for a downtown parking permit.
Alderman Ross Terrio warned that waiving the fees could set a precedent.
"My fear is that if we waive fees for these folks, everybody will want fees waived," Terrio said.
Others argued the county should cover the employees' parking costs.
"They should see if the county commissioners and delegation will foot the bill," said Alderman Bill Barry.
"This is $18,000...I think it's the county's responsibility," Long said. He noted that Hillsborough County has a surplus of $35 to $40 million and has $81 million in American Rescue Plan Act funds.
"So they can take care of $18,000," Barry said.
Tax cap debate
A request from the representatives of the Nature Conservancy for $68,000 in Community Improvement funds to finish a parking lot and connection to the trailhead at the All Persons Trail at the Manchester Cedar Swamp Preserve was denied last week.
Alderman Kevin Cavanaugh blamed the city's tax cap for a lack of available revenue.
The Nature Conservancy recently announced a $700,000 plan to improve access to the preserve — a 640-acre conservation area in the northwest corner of the city.
The trail will be just over a mile in length and include six benches, a 200-foot boardwalk through a globally rare Atlantic White Cedar Swamp, and an observation platform at a large patch of wild giant rhododendrons.
The Nature Conservancy has raised enough money to construct the trail itself. The $68,000 funding gap to finish a parking lot stems from the loss of anticipated funds from a joint application to the Land and Water Conservation Fund. The project would expand the parking area to accommodate anticipated additional visitors and more ADA-compliant parking space.
In denying the request, aldermen cited a lack of available community improvement funds.
"I think they're doing a great thing, I just don't know where the money's going to come from," said Alderman Jim Roy. "Things are pretty tight. It's a slippery slope when you start to give money out to build things on private property."
"I would love to fund this, but I just don't know where we're going to find $68,000," said Alderman Tony Sapienza.
Cavanaugh put the blame squarely on the tax cap.
"The sad part is that we're just handicapped with this tax cap," Cavanaugh said. "I said it before at the budget meeting — we have revenues that we could use on the city side, we have great partners and have great resources for residents of the city. It's important to be able to grab those revenues, but we just couldn't do it this time."
In June, city aldermen for the second year in a row failed to muster enough support to override the city's cap on property tax revenue and expenditures. The vote was 8-5, with nine votes needed to pass.
At Large member Dan O'Neil said he hopes officials keep looking for a way to fund the request.
"There is — override the revenue (cap)," Cavanaugh said.
"I know. That's not gonna happen until next June now," O'Neil responded.
Paul Feely is the City Hall reporter for the New Hampshire Union Leader and Sunday News. Reach him at pfeely@unionleader.com.
