The St. Louis Economic Development Partnership board this week questioned spending on its holiday party and advertising in a local newspaper as the organization faces a tight budget amid a political battle in St. Louis County.
The questions followed the St. Louis County Council’s move Tuesday to fund the organization quarterly and require the Partnership to justify its expenses before receiving about $4.16 million in four allotments — nearly $600,000 below what it requested for the year.
At its board meeting Wednesday, held every other month, the Partnership staff faced some questions on its spending requests.
One request dealt with $61,000 for the Partnership’s upcoming annual meeting held at the Chase Park Plaza, which is usually held in the first quarter of the year.
Another asked for approval to spend $38,000 with the St. Louis Business Journal to produce the Partnership’s annual report and distribute it in editions of the publication. The Partnership has bought ads in the past with the Business Journal and publications like in-flight airline magazines.
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“In light of some of the budget discussions, is it wise to fund things that maybe are important but perhaps an employee might be more important?†board member Kathleen Osborn asked staff about the two expenditures.
Steve Stenger's chief of staff calls it a "betrayal of public trust."
Katy Jamboretz, who heads marketing for the Partnership, said the annual meeting actually makes money — often around $100,000 after expenses — through ticket sales and fundraising.
As for the Business Journal report, Jamboretz said: “the goal is also fundraising.â€
“You know The Business Journal is a core C-suite audience,†she said. “These are the folks that we need to believe in what we are doing before we ask them to support us financially.â€
After being assured the annual meeting was a money-maker, the board supported it. It also supported the Business Journal contract, though Osborn voted against it.
And when staff disclosed a $20,000 contract with River City Casino for its holiday kickoff party — a measure that didn’t require a vote — Osborn asked, “Is that wise?â€
The board tabled a final decision on funding the , which helps immigrants integrate into the region. It typically gives the program, which has its staff under the Partnership umbrella, $200,000 annually.
The delay will give the board more certainty on the Partnership’s appropriation from St. Louis County. Partnership Chief Financial Officer Joyce Steiger said there is enough in reserves to continue funding the Mosaic program until the board meets next in February.
“We’ve always given them their $200,000,†Steiger told Osborn. “Kathy, all bets may be off this year.â€
The board also attempted to go into closed session Wednesday to discuss personnel matters, which is allowed under the Missouri Sunshine law. But the Post-Dispatch objected because there had not been proper public notice of a closed session for personnel matters. It went into closed session to discuss legal matters instead.
On Friday, the Partnership scheduled a special meeting for Monday at 2 p.m. One of the reasons for the Monday closed session cites the exemption for “hiring, firing, disciplining or promoting particular employees.â€
