The Starke County Council held an extended discussion at Monday’s meeting in regards to funding and financial transparency of the Starke County Economic Development Foundation.
Council Vice President Dave Pearman stated that he had been asked to represent the Foundation during the discussion, and provided a copy of the agreement between the Starke County Commissioners and the Foundation. Pearman said the Foundation’s board had asked him to approach the Commissioners regarding questions surrounding the agreement, but the Commissioner’s meeting hadn’t happened yet. Pearman stated that because the agreement is between the Foundation and the Starke County Commissioners, action regarding the agreement should be directed through the Commissioners rather than Council.
Council members argued that the Council has an interest in the Foundation’s finances because taxpayer money is being provided to the organization.
Council member Todd Leinbach stated that he had been requesting for 229 days that someone from the Foundation attend a Council meeting and explain how the county’s money is being used. It was also stated that when funding was previously approved, it was done with the understanding that the Foundation would come before the Council and provide occasional reports.
When Pearman asked whether the Foundation had received an official request for someone to attend a Council meeting, the response was that it had been a while since a formal request had been sent.
Council members specifically questioned $110,000 in county funding provided to the Foundation, including discussion on whether the Foundation needed the full amount.
Leinbach made a motion to discontinue funding the Economic Development Foundation. The motion was seconded by Council member Bruce Bennett, but discussion continued before a vote was taken.
During that discussion, the Council reviewed provisions of the agreement concerning access to the Foundation’s financial information. During the meeting it was shared that the agreement provides access to the Foundation’s annual audit and allows its financial records to be examined by the Starke County Auditor or the auditor’s staff, agents or designees.
Starke County Auditor Michaelene Houston said she had reviewed the Foundation’s records and had provided Council members with a written report. Houston shared that she was not permitted to take a copy of the Foundation’s underlying records from the office.
The discussion then turned to what information from that review could be shared. It was argued that while the Foundation had placed limitations on what Economic Development Foundation members could disclose under its bylaws and NDAs, nothing in the county’s agreement appeared to prevent the auditor or other authorized reviewers from discussing information they learned while examining the records.
Pearman continued to maintain that because the agreement is with the Commissioners, the Foundation wanted the Commissioners to determine what additional information or action they wanted from the organization.
Council members also discussed the possibility of having an agent or designee review the Foundation’s records and report the findings back to the Council. It was stated that nothing in the agreement appeared to prohibit such a designee from discussing what was found.
During the discussion, it was also noted that the Foundation has reduced its staff and moved to another building as measures to save money. It was argued that the Foundation had complied with other requests from the Council, with the continuing point of disagreement involving access to its balance sheet and financial information specifically.
Bennett ultimately withdrew his second to Leinbach’s motion to discontinue funding. When the Council returned to the outstanding motion near the end of the meeting, no other member offered a second. The motion died without a second, and ultimately, no action was taken in regards to the Foundation’s county funding.
