Monticello Could Face Sanctions

Although an $800,000 grant to improve streets, drainage and housing in Monticello’s Blue Ruin area achieved its goals, the city failed to properly report a possible conflict of interest and thus could face a minimum of two years’ ineligibility for certain state grants.

As previously reported, the state Department of Community Affairs (DCA) found that grant funds were properly spent.

But because the city did not properly deal with a possible conflict of interest by city manager Walter Smith, the state agency has proposed sanctions, barring the city from the Community Development Block Grant (CDBG) program for a minimum of two years, according to a letter sent last week to city and county governments.
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Mr. Smith and his brother, Charlie F. “Pop” Smith, are owners of 13 houses on which some $72,000 in grant funds were spent. The grant was to pay for materials with owners providing labor.

The City Council voted in May of 1996 to apply for the grant, with Carter Consulting of Americus to write the application and administer the grant. After Walter Smith was employed as city manager in September, 1996, the grant application was withdrawn and resubmitted with the county as the recipient and Carter consulting remaining as administrator.

The grant was not awarded until February, 1997, and the city had failed to properly disclose the potential conflict of interest, said the DCA letter signed by Brian Williamson, director of the Business and Financial Assistance Division.

The failure to “properly disclose Mr. Smith’s financial interest constitutes a serious…ad-ministrative finding of the highest order,” Mr. Williamson said.

The city has until Feb. 28 to comment on the proposed sanctions. Mayor Susan Holmes has indicated that the city may not respond, since it anticipates no need for similar grants in the next couple of years.