JONESBORO, Ark. (KAIT) – At the start of Friday’s Finance & Administration Council Committee’s meeting, Mayor Harold Copenhaver addressed what he called the “20,000-pound elephant in the room.”
“Following a city staff meeting that was had with the Department of Justice, the city is prepared to serve as a trustee for the City Stars financial activities. The Department of Justice expressed no concerns with the protocols in place with the city and the handling of public funds.
We do expect to have this as a budget impact but have no way to predict what that will be until the baseline of that is established.
The city continues to work closely with authorities and legislative audit to ensure youth sports continues without issue during this time. Our children are our number one concern.
It is my understanding that the City Stars board has recently voted to work with the city on this transition. We appreciate their help in this matter and their shared efforts in supporting the thousands of youth in our community that enjoy these programs.”
The mayor concluded by saying there would be no further statements.
The City Stars Booster Club released a statement Friday announcing the club is dissolving as a private, 501c(3) nonprofit, and transferring operational responsibilities to the city of Jonesboro.
“As part of this transition, all bank accounts, funds and sports equipment will also be transferred to the City of Jonesboro,” the release said.
The booster club said their board and the city has been in discussions to determine the best way forward for months.
On Dec. 2, the city announced Parks and Recreation Director Danny Kapales was on paid administrative leave pending the outcome of a federal investigation. The city has not elaborated on what the investigation entails.
Friday’s comments were the first to suggest that the investigation is focused on the City Stars program.
A public affairs officer with the Federal Bureau of Investigation’s Little Rock office confirmed an investigation was underway but could not provide details at this time.
Copenhaver requested an independent audit of City Stars’ financial records after board members of Arkansas Revolution FC resigned en masse in April after raising concerns about finances.
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