Mayor Winnecke’s Update On The Situation Involving The Parks and Recreation Department.

Good afternoon. I hope this finds you well.

I’d like to take this opportunity to update you on the situation involving the Parks and Recreation Department.

Last Tuesday, City Finance alerted me to the existence of two unordinary invoices. It became immediately clear that we should ask EPD to investigate. The Financial Crimes detective unit reached out to City Finance to begin the investigation. Since the start of their work, five additional questionable invoices have come to light — for a total of seven.  It’s very important to note that there is no evidence of missing city funds at this time.

I have, however, authorized the engagement of an independent, outsider auditor to conduct a forensic review of the Parks Department. That work will begin right away. In fact, we anticipate having a contract on the agenda for this week’s Board of Works meeting for their approval.  This review will be performed on an hourly rate basis, so it’s unclear how much this work will cost. We will be adding $50,000 to an upcoming Finance Ordinance as a starting point. It may cost less. It mas cost more. And, it’s possible that our insurance will cover the cost of the review as well as any potential loss. Our city legal team is working with our insurance provider on that front.  Furthermore, City Finance has alerted the State Board of Accounts to these invoice irregularities as a matter of routine protocol.

This investigation is being led by the very capable Financial Crimes unit of EPD. The FBI, with whom EPD regularly partners, is aware of this investigation but does not have an active role.

The questions raised in the last several days have prompted my to lose confidence in Brian Holtz’s ability to lead the department going forward. Therefore, I have accepted Brian’s resignation. I have asked Deputy Mayor Steve Schaefer to assume management of the department until a new, permanent director is named. I offered that direction and re-assurance when I met with the Parks Department staff this morning.  Detectives tell me the staff has fully cooperated, and they believe have no role in the questionable invoices.

It’s important to stress to your constituents that all normally scheduled activities of the Parks Department will continue.

Please know that I am committed to fully understanding the scope of the irregularities. I’m sure each of you share my deep and profound disappointment.

I will keep you posted.

Thanks. Take care.

Lloyd