Comptroller: Jackson, Tenn., city spending questionable

JACKSON, Tenn. — A Tennessee Comptroller’s Office investigation has found millions of dollars in questionable spending by the city of Jackson, although a grand jury has declined to take action, according to the comptroller.

The payments included reimbursements to the Jackson Generals baseball club and expenses for waste disposal that the city continued to provide despite a contract with Waste Management for those services.

The investigation began after current city officials reported questionable transactions that occurred during the tenure of former Mayor Jerry Gist and his administration, according to the Comptroller.

They include a payment of more than $526,000 for the Jackson Generals baseball club for goods and services the club received through barter transactions.

“Essentially, the club was paid twice: 1) once when the club received a good or service from a vendor during a trade deal; and 2) when the club presented an invoice to the city and received a reimbursement payment,” according to a news release from the Comptroller.

Other questionable payments came after the Jackson City Council approved an amended lease agreement with the baseball club in June 2011 that obliged the city, at the club’s request, to reimburse the club for expenses including field preparation and maintenance and pre-stadium event preparation.

Council members were unaware of the significant changes to the contract, according to the Comptroller; a day later, the former mayor signed a letter assuming $500,000 in annual payments without the council’s review or approval.

Beginning with the amended lease approval in June 2011, the city’s payments to the club grew substantially, according to the Comptroller. In fiscal year 2010, the city provided the club $352,215. By fiscal year 2019, the city was providing $1,105,168 in payments.

Although the City Council approved payments to the club as part of the annual budget, some of the payments to the club were misclassified. “Council Members told investigators they were unaware of the ‘true financial picture’ the city provided to the club over the years due to these and other nontransparent techniques,” according to the Comptroller.

In addition, the Comptroller’s Office found the city continued to use its own Health and Sanitation Department for most bulk waste removal despite a contract with Waste Management for the service. The duplication caused the city to incur more than $5.2 million in additional costs between August 2016 and October 2019.