Monday, October 28, 2024

A message to the Parks Board meeting 10-28-2024

As you may know, I and others have been conducting a citizens review of  the contract for the Trail of Lights Foundation with the City.  While the Trail Conservancy Audit is already underway, this is another, different case where the financials may not be in the public’s interest let alone in the city’s best interests. There may even be fraud and serious violations of the existing contract. 


Interim Director Means received a copy of Audit Request case # 3727. City Manager Broadnax met with us last week to discuss details.


Some of the identified concerns include the following:


1. Potential Overcharging the public for admission and parking in 2023;


2. Potential Incorrect billing-or 

-waiving of Tiered Special Event Maintenance Fees and park-use fees prior to 2023;


3. Potential for Incorrectly charging admission on free nights in 2023.




We calculate that the above issues have resulted in:


1. Potential Undeserved revenue from overcharging attendees of up to $650K in 2023;


2. Potential Un-invoiced nonrefundable park-use fees of $30K annually prior to 2023; 


3. Potential Un-invoiced Tiered Special Event Maintenance Fees of about $43K-$88K annually prior to 2023.



By a 2023 Council Resolution, the potential for continued contract violations has been baked into the business model of the Event until 2032. And no one in the City appears to have asked about the profits being earned or the accrued cash reserves year-over-year.


Bottom line is *In the past 4 years, the Event has earned over $1.4M in profits after all salaries and expenses were paid.


By comparison in just one year 2023, over $136K of park-use fees were waived by the previous PARD Director. 25% of those fees were to be "nonrefundable." The PARD Director's choice to ignore contract terms which she signed annually -- resulting in lost potential revenue to the General Fund -- is appalling.


None of that $1.4 M in profit in the past 4 years appears to have come back to the public or the city. An audit will determine if it was kept by the “non profit.” It is difficult to see how this is in the public interest. Furthermore, there may be conflicts of interest concerning Trail of Lights leadership and the previous PARD Director. The city needs to reexamine what it is getting from this  “partnership.” 


Meanwhile, as we speak, the 2024 Event continues to overcharge for General Admission — charging $8 plus fees instead of $5 max per person —  sells VIP and ZIP admissions on nights required to be 100% free; and continues the program of ZIP admissions to allow paying customers to "skip to the head of the line" which damages social equity.


Details about the audit request are posted at TodayinZilkerPark.com. You have received an email from me today with links.


I urge you to review the information and pass a recommendation at a future meeting to require Trail of Lights Foundation to meet their contractual obligations.  This action is part of your charter to improve the operation of our parks.


I am available to answer questions and to go over the details if you would like. 


Thank you in advance for taking this matter seriously. 

A message to the Parks Board meeting 10-28-2024

As you may know, I and others have been conducting a citizens review of   the contract for the Trail of Lights Foundation with the City.   W...