Fennville Mayor Dan Rastall took to social media to comment on recent discoveries that have given the city “a black eye,” saying residents were owed an explanation about the financial chaos and record-keeping errors that have come to light this year.
“We feel it’s better to be transparent about our mistakes and own up to them so we can correct them going forward. We owe that to you, the citizens of Fennville,” he said in a post on the city’s Facebook page on Dec. 5, 2022.
Parking lot
The reaction came after media reports on a multitude of problems including the revelation on Nov. 21 that the city already owned a parking lot as of 1994 adjacent to a former bank building it purchased in 2019 to, in part, keep the parking lot out of private hands. Debates at the time focused on the 40-space parking lot at 125 S. Maple St., with then-commissioners arguing the lot had to get into public control to keep it open for downtown merchants.
The decision to purchase the bank building – and, commissioners believed, the parking lot – passed by only one vote.
Rastall said he received comments from confused residents after The Holland Sentinel ran a story last week with the headline, “Audit shows Fennville re-purchased a parking lot it already owned, among other errors.”
The headline was misleading, Rastall said.
“.. the City DID NOT purchase a parking lot that it already owned. It is impossible to purchase something you already own,” he wrote. “The City of Fennville purchased the parking lot parcel from the bank. The City Assessor at the time failed to record the purchase. Over time, as city staff and City Commissions changed, any knowledge of the purchase was gone.”
Twenty-five years later, the city purchased the bank property with the building on it.
“For whatever reason during title searches and closing it was never noticed that the City was purchasing just the lot that the building stood on. The Commission at the time was not aware the City already owned the parking lot and they thought they were buying both the building and the parking lot together as one parcel,” Rastall wrote.
Special audit
A special audit initiated by the city in May showed “journal entries were entered incorrectly, wrong accounts were used for payments and assets were not recorded correctly,” but, he added, the audit has not found evidence of embezzlement, criminal wrongdoing or missing money.
What was found, he said, “was evidence of an overworked City staff in which too few people were wearing too many hats.” The city has hired additional staff and continues to correct a multitude of problems throughout the administration.
Rastall ended his social media post on the Fennville City website by saying the elected commissioners are not politicians.
“We don’t do this for money or recognition, we do this because we love our community and want to do our part to make Fennville a wonderful place to live, work and play. … We believe we have a great staff in place. They are working hard to correct any past mistakes and set us up with solid processes going forward,” he wrote.
Complete text
Here is the mayor’s complete post as it appeared the City of Fennville Facebook page:
This past spring the City of Fennville Hired Kathryn Beemer as it’s new City Administrator. One of Kathryn’s first assignments was to prepare a draft budget for the upcoming fiscal year. While preparing the draft, Kathryn went through the City’s financial documents and past budgets and had some questions. Kathryn and new City Treasurer Camille Clark came to the City Commission and requested that the City hire Plante Moran to do an audit of the City’s finances. During the audit, Plante Moran found that a lot of journal entries were entered incorrectly, wrong accounts were used for payments and assets were not recorded correctly. At this time, Plante Moran has found NO evidence of embezzlement. At this time, Plante Moran has found NO evidence of missing money. At this time, Plante Moran has found NO evidence of any criminal wrongdoing. What Plante Moran did find was evidence of an overworked City staff in which too few people were wearing too many hats. The City Commission has taken steps to address this by hiring a full time City Clerk, Morgan Hummon. Plante Moran has also left the City with suggestions on how to put better processes in place which City staff is currently implementing.
In response to the purchase of the Chemical Bank building, the City DID NOT purchase a parking lot that it already owned. It is impossible to purchase something you already own. In 1994 Chemical Bank split their lot. One parcel was the building, and one was the parking lot. The City of Fennville purchased the parking lot parcel from the bank. The City Assessor at the time failed to record the purchase. Over time, as city staff and City Commissions changed, any knowledge of the purchase was gone. A few years ago, the Chemical Bank building was put up for sale. The City Commission at the time, decided to purchase the building for a couple of reasons. 1) the building could be the new City Hall and 2) to control the parking lot that they did not know they already owned. So, the Commission voted to approve the purchase of the building. For whatever reason during title searches and closing it was never noticed that the City was purchasing just the lot that the building stood on. The Commission at the time was not aware the City already owned the parking lot and they thought they were buying both the building and the parking lot together as one parcel. The only people that received any money from the sale of the building was the seller of the Chemical Bank building.
Myself and the rest of our City Commissioners are not politicians. We are your friends, neighbors, co-workers, and family. We don’t do this for money or recognition, we do this because we love our community and want to do our part to make Fennville a wonderful place to live, work and play. We are not in City Hall every day, we all have full time jobs, go to school, or are retired. It is our job to hire a staff to manage the day-to-day activities of the City of Fennville. We believe we have a great staff in place. They are working hard to correct any past mistakes and set us up with solid processes going forward. Yes, these mistakes are embarrassing and give us a black eye but we feel it’s better to be transparent about our mistakes and own up to them so we can correct them going forward. We owe that to you, the citizens of Fennville.
If anyone ever has any questions or concerns, we meet the first and third Monday of every month at 7:00 pm. These are open meetings, and you are welcome to attend and participate. Or you can email me directly at drastall@fennville.com.
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Thank you,
Dan Rastall
Mayor, City of Fennville