Published: November 11, 2008 10:32 am         

Yale money questions arise

YALE — A special city commission meeting Monday evening raised more questions than it answered.

During a standing-room-only meeting at Yale City Hall, a credit card in the name of a former city employee was said to have $11,000 in charges made in one day in October.

Milton “Craig” Wells, who was Yale city clerk from about Oct. 1, 2007, to the end of October this year, told the NewsPress after Monday night’s meeting the credit card is his.

But Mayor Tom Mendenhall said during the meeting the credit line of $17,000 could only be obtained using the city’s credit, and the card was in the name Milton C. Wells, using the city of Yale address.

“There’s no doubt it is a city credit card,” Mendenhall said.

City Manager Jerri Shaw said the account is a business account, not personal.

Not so, says Wells.

“That credit card was opened in my name, with my social (security number), my history, the whole bit,” Wells said during a phone interview Monday night. “I allowed the city to use it and used it for city business on occasion and paid city invoices on occasion, but it is my card.”

Wells said he has been paying the bill, and he used his work address at city hall as his billing address.

“It was not opened using city of Yale credit. It was opened using my credit,” he said.

Wells said the commission was aware he was using the card for some purchases, which were approved by the commission.

Wells said he has recently changed the billing address from Yale City Hall to his home address.

“I already explained to the mayor exactly what happened (with the card), what’s going on,” he said. “I have taken full responsibility and it is my bill. The city has not been charged anything for it.”

Wells said he has invoices and all necessary paperwork to back up any city purchases involving the credit card the mayor questioned. The city remitted a check to the credit card company for any approved city purchases.

“They were paying for their purchases,” he said.

Wells added he made a $1,500 payment on the account Oct. 22.

“The city attorney wrote Chase bank a letter stating the city would not be liable for any charges on that card,” Mendenhall said.

“It boils down to someone using the credit of the city for personal gain,” the mayor contends.

Commissioner Maurice Lozier said the credit card issue needs to be turned over to the city’s counsel for legal action. Mendenhall said any legal action is up to the commission.

City Commissioner Pam Cook said when she called the number on the invoice for the credit card, she was told the account could not be discussed with anyone except Milton Wells.

“You know why,” Mendenhall responded, “because by that time he already got everything solely in his name.”

Mendenhall also said financial records were needed to back up city loans at the bank, and the deadline for submission of the reports has passed.

“To back up those loans we have, we are in default if we don’t (submit the reports),” Mendenhall said. Plans were made to get the records ready.

Audience member Rick Turner contended a recent NewsPress article about Yale’s money woes and personnel conflicts contained misinformation with regard to Lozier’s recollection of last Wednesday’s special meeting.

“I stand 100 percent (behind) my statements to the Stillwater NewsPress,” Lozier said. “I stand 100 percent and if any of the board members would like to raise their hand and say they disagree, they may do so.”

No one did.

A citizen said he was concerned that the normal time period for an audit of the city’s financial records is August or September, but the review has not been done and an audit firm hasn’t been hired. He also contended the commission wrote, approved and signed checks that “never seemed to arrive at their destination.”

Mendenhall suggested the commission contact everyone to whom checks had been submitted and confirm receipt of each check. The city would then issue a second check to patrons who are owed.

Citizens and commissioners brought up the issue of record keeping at city hall and how the city’s financial situation seemed to collapse in a short time.

Lozier said recent financial statements hadn’t been completed, and Mendenhall agreed.

Mendenhall noted an expenditure on $1,875 for audit expenses, but recalls authorizing more than $6,000 in audit expenses. He said the board agreed upon August debits and expenses.

     

• Click to discuss this story with other readers on our forums.