Council members reimburse city funds
Four pay back amount totaling nearly $4,000 in inappropriate charges
NEWPORT NEWS — A more than $700 flight to Indiana to watch a Christopher Newport University basketball game, a $200 a night hotel reservation, and roughly $1,100 in meals were among the inappropriate charges some City Council members made on city-issued credit cards earlier this year, according to an internal city review.
The credit card expenditures were detailed in a legal memo sent May 1 from Newport News City Attorney Collins Owens to City Manager Cynthia “Cindy” Rohlf. Owens said Rohlf had asked him to review whether specific credit card uses complied with federal and state law as well as the city’s travel policy.
Owens wrote that many of the expenses did violate the state code and the city’s travel policy. He said he believed city council members and city employees, such as the director of finance and the city manager, could face criminal penalties under state code if the city didn’t seek reimbursements and the council members did not return the money.
Ultimately, four did pay back the charges.
The Daily Press obtained a copy of Owens’ 8-page legal memo as well as credit card statements from all council members, and documentation of reimbursements through a Freedom of Information Act request. The legal memo did not name which council members made specific charges, but the credit card statements from members correlate with the expenses discussed in the memo.
Six city council members had city-issued credit cards. Owens said the Internal Revenue Code allows employers to pay business expenditures incurred by employees as long as there is a clear business connection to the spending, adequate accounting by the recipient and excess reimbursements or
advances are returned within a reasonable period. But several charges made by four council members came under review and were found inappropriate and not allowable under the city’s policy.
The council members required to pay back expenses: Vice Mayor Curtis Bethany, in the amount of $2,756; Councilman John Eley ($1,050), Councilwoman Pat Woodbury ($35) and Councilman Cleon Long ($33). Bethany, Eley and Long took office in January.
Mayor Phillip Jones, who did not have to reimburse any expenditures, said when the new council members began their terms they were told city-issued credit cards were for “city business.” But after the Jan. 6 Richneck Elementary School shooting, he said many planned briefings were “pushed to the side” as the council dealt with the fallout from the shooting.
Jones said Rohlf and Owens made him aware about the improper use of credit cards and that he told the other council members they should pay back the money. In response to the review, Jones said everyone on council — both old and new — will get training on appropriate use of city money. He also said because of the situation, the council will from now on only use purchasing cards, with the exception of the mayor — who can keep the credit card due to the frequency of his travel.
Rohlf is leaving her position as city manager on Aug. 1. The council voted Tuesday to approve a severance package for her that provides 18 months pay. She did not return calls this week seeking comment.
Curtis Bethany
The biggest offender was the vice mayor, who had to reimburse the city more than $2,700 in inappropriate charges.
He used a city credit card to purchase airfare to attend the NCAA Division III Basketball Tournament in Indiana. Bethany made two American Airlines charges for a $734 ticket and a $54 seat upgrade March 17. He also made a hotel charge of $205 on March 17, credit card receipts show.
Bethany said in an interview he wanted to support Christopher Newport University as a council member during the tournament and initially thought the expenses were appropriate. Bethany said no
one advised him ahead of time that traveling to the game would be an improper use of city credit cards. Initially, he wanted the city to hold a parade if they won the championship.
Owens said in his letter to Rohlf that because hotel and airline costs to Indiana to attend a CNU basketball game were not associated with official city business, as required by the travel policy, the charges were improper. Owens also noted the expenses appeared to be “entertainment, amusement and/or recreation charges.”
Financial statements show Bethany also used a city credit card to pay two people who previously worked on his campaign for City Council in the fall to help him with constituent services. Bethany used Cash App to pay about $1,030 between the two people for helping him with city services, such as communication with constituents.
Owens said the services were not obtained per the city’s purchasing procedures and requirements and were therefore improper. He noted the city clerk previously told the council her office is “willing and able to provide administrative services to City Council members, such as communicating with constituents, organizing emails and calendaring events.”
Other charges made by Bethany that he was asked to pay back include $24.50 for tickets to Woodside High School basketball
games, two $69.99 payments for a premium subscription to LinkedIn, and a $25.75 donation to the Virginia Peninsula Foodbank.
The games were unrelated to any City Council purpose at the game, according to Owens. The LinkedIn payment was deemed improper because “city payment for a private social media subscription for a local government officer is not a special benefit authorized by law and is not a part of any compensation package or salary offered to members of City Council,” Owens wrote.
Bethany said the food bank donation occurred when his own personal credit card wasn’t working.
“So I tested it out on the food bank website, that was all that was,” he said.
Bethany said the matter was “all handled and resolved internally without any issue.”
Documents provided by the city show he reimbursed the city $2,241 on May 10 and $515 on May 24.
“We debated a little bit on the interpretation of the policy, but I voluntarily reimbursed the city so we can be squared and be on the same page going forward,” he said.
But Councilwoman Pat Woodbury offered a different account. She said she believed the relationship between Bethany and Rohlf deteriorated after the city manager questioned Bethany’s credit card use. On Thursday, Woodbury
spoke of the council “getting rid of her” and felt the credit card situation was a likely factor in Rohlf ’s departure.
Bethany said there was “absolutely no truth” to Woodbury’s statements.
John Eley
According to credit card statements, the councilman spent $1,457 on lunch and dinner meals from Jan. 29 to March 5. Meals included a $249 dinner at P.F. Chang’s, a $159 dinner at a Marriott in Virginia
Beach, and a $286 lunch at Bay Local
Eatery in Virginia
Beach.
The letter from
Owens to Rohlf indicates that restaurant charges during constituent meetings were problematic for several reasons. To be an allowable business expense, such charges must have a documented business purpose, and the meals “cannot be extravagant.” No documentation about the purpose of the meetings or the names of the constituents at the meetings were provided, the attorney said.
Eley reimbursed the city $1,050 on May 24. The remainder of the balance was deemed an allowable expense under the city’s travel policy.
Eley told the Daily Press that council members were told at the beginning of the year when they received credit cards that they were for city business. Eley said he used the cards to meet with various community members over a meal and learn about their community needs. During these meetings, he said he would offer to cover the bill. He said he believed that would have been considered a city business use and expressed frustration about not having clearer directions on what is an allowed use of the city credit card.
Pat Woodbury and Cleon Long
Woodbury had to reimburse the city $35.36 for a portion of various meals dating to late last year at Schooners, Smoke BBQ, Schlesingers and Warwick Restaurant. Woodbury recalled eating with reporters and a member of the Hampton Roads Transit during some of the meals.
“I have no problem reimbursing,” Woodbury said. “I did not realize I had gone over the amount that was allowed.”
Long reimbursed the city $33.81 for a March 29 meal at the Green Turtle. He said when the credit cards were initially distributed, the finance director did not provide training or a policy regarding their usage. However, the only policy provided was specifically for P-cards issued to city staff members.
“Unfortunately, the limits for non-travel meal expenses were not outlined in the P-Card policy,” Long said.
Long said on April 17, he met with the finance director, Rohlf and Owens and was informed about the limits for non-travel meal expenses. He said on May 2, the finance director provided a policy specifically addressing the usage of council credit cards.
“As a personal preference, I have now started submitting my receipts for reimbursement, as it helps me avoid the hassle of remembering the limits,” Long said.