Wasilla chamber to work off debt to city

WASILLA — The Greater Wasilla Chamber of Commerce will repay the city of Wasilla thousands of dollars of grant money it spent outside its contract to operate a convention and visitors bureau.

The chamber’s announcement comes after the city completed a financial report of how the chamber spent the $100,000 grant it received in 2007. The report found, according to the statement, “disbursements ... outside the scope of the contract.”

Board member Dave Baker said the chamber welcomed the city’s report.

“We encouraged that type of thing. We were hoping it would go a long was to satisfy some of our members’ concerns.”

The two-year contract was to support the chamber in three areas of its Wasilla Tourism/Vistors Bureau: general tourism promotion, convention and meeting development, and special events promotion.

Per the terms of the contract, no more than 25 percent of the money was to go to chamber personnel salaries and benefits. Upgrades and maintenance to the chamber building were not to be done with grant money. No more than 10 percent of the grant was to go to dues, memberships, personal expenses, travel or trade show and convention fees. The chamber could not make capital purchases with the grant money unless what was purchased was used only for tourism bureau business.

For the report, the financial contractor focused on 68 transactions totaling more than $36,000 that seemed to fall into the restricted categories. From that, more than $15,000 appeared out of compliance with the contract, what Wasilla mayor Verne Rupright called “improprieties.”

In going through the report, the amount spent on travel, memberships and convention fees exceeded the allowance of the contract by more than $2,600. It appears money from the grant was used for utilities, expenses and building improvements expressly prohibited by the contract. More than $3,600 lacked sufficient supporting documents to determine if it was spent properly.

“We were required to have accounting for each expenditure,” Baker said. “It really wasn’t so much spending above and beyond as it was having the proper receipts.”

The city also asked the chamber to return the $12,500 raise given to the past executive director, Cheryl Metiva, from the grant money, and another $3,000 in back payroll taxes.

“We did not contest that,” Baker said.

While the chamber was able to present documentation clearing some of the minor charges, they agreed to repay $29,126.45, Baker said.

The chamber, which has long been in a financial trouble, has agreed to pay back the questionable expenditures over three years, Baker said. However, instead of demanding cash payments, the city asked if the chamber would be willing to work off their debt by taking over certain community events, Baker said.

In the past, the chamber ran the fireworks shows on New Year’s and the Fourth of July, as well as the Fourth of July parade, Rupright said. Under previous administrations, the city started paying for these annual events, he said.

By giving those responsibilities back, the city will save its own money while not limiting the chamber’s ability to operate, Rupright said.

“The chamber is an integral part of our community,” Rupright said. “Instead of going into a repayment plan that would strap them into a three-year debt obligation, let’s move it back to the way it was.”

Baker said the board has not discussed taking action against Metiva for mishandling the money, or asking her to return the $12,500 in compensation. With chamber elections Thursday, that will be for the new board to decide, he said.

Contact Todd L. Disher at todd.disher@frontiersman.com or 352-2252.