The Delray Beach Downtown Development Authority (DDA) plays a vital role in our city’s vibrancy, a legacy rooted in its 1971 mission to address parking challenges and boost downtown liveliness and livability. Events like Savor the Avenue, Art & Jazz, and the Safety Ambassador program enhance our community, and I commend these efforts. However, as mayor, I must question the cost and transparency of this success.
In addition to being mayor, I am an attorney with a master’s degree in tax law. In my earlier life, I also ran a bank, which was subject to state and federal financial reporting requirements, and I have been a municipal bond attorney. I was also chairman of the Housing Authority and vice chairman of the Community Redevelopment Agency. In those capacities, I have reviewed hundreds of financial reports from both public and private entities. So, I know these reports well, I have worked hard to understand them, and perhaps irregularities jump out at me more than they do for others.
Tom Carney is mayor of Delray Beach.
In the last five years, the DDA’s budget has grown 100% to over $2 million a year, funded by a consistent one mill tax on DDA downtown residents. These residents pay this tax in addition to their city taxes, supposedly for services that benefit them more than others. But don’t these events arguably benefit all city residents? And the salary, benefits and administrative overhead is around 60% of the DDA’s budget. While growth demands investment, the lack of customary cost controls raises concerns.
For instance, consider Savor the Avenue, a marquee DDA event. The DDA spent over $68,000 to produce this event, which generated over $140,000 for participating restaurants (with taxes and tips billed separately). Originally held in the shoulder season to support restaurants during slower months, it’s now scheduled in March, a peak season when restaurants are already thriving. Previously promoted as a charity fundraiser, it’s now described as having a “charitable component,” yet each restaurant donates only $200, totaling just $2,800 for charities, merely 2% of the revenue. Taxpayers, not sponsors or the benefiting restaurants, bear the $68,000 cost. I believe those profiting, like the restaurants, should fund this event, not the public.
Then there are other questionable examples of financial management. The DDA’s financial reports reveal a troubling lack of accountability. Employees spending taxpayer funds are reimbursed despite not presenting receipts. Travel expenses lack clear policies, and marketing costs have ballooned, with 2.5 positions as in-house staff and three external firms. Taxpayers deserve detailed oversight, not just expenditure confirmation.
We have restaurant bills, liquor bills and “gifts” all being charged to the DDA taxpayer, mostly without a defined “public purpose” (as required by law) and most without backup to show who benefits from this largesse at the taxpayer’s expense.
I’m gratified that a majority of my fellow commissioners joined me in asking the city internal auditor to review the DDA’s expenditures. The results should be available in mid-September. That report should be useful in determining whether the proper financial controls are in place for spending taxpayer funds.
I was elected on a platform that included accountability and transparency for all public dollars being spent. But when I raise questions about the financials, suddenly I am putting the agency “under siege.”
I truly appreciate the DDA’s impact, but transparency is long overdue. I urge residents to attend the Sept. 3 and Sept. 15 city commission meetings, held at 5 p.m. at City Hall, to demand accountability. Together, we can ensure the DDA thrives responsibly, aligning its impressive work with accountability to the taxpayers who sustain it.
Tom Carney is mayor of Delray Beach.
