Concerns Over Public Spending in Daytona Beach

Daytona Beach City Hall is raising questions about the use of public funds. City Commissioner Stacey Cantu recently came across some questionable charges on a city-issued credit card, known as a P-Card, and has called for an investigation to determine who is using the card and for what purposes.

“Why are we paying for training for contractor employees? And why are we seeing a $144 monthly cell phone bill when the city already has a lump sum account?” Cantu questioned during a recent meeting.

According to the city’s established P-Card policy, no phone charges, regardless of the amount, should be made from this account. Other prohibited charges include those for gasoline, vehicle repairs (with some exceptions), car rentals, and cash advances. City officials feel that this policy is outdated and in need of revision.

Records indicate that around 280 employees, including 10 contract workers at Halifax Harbor Marina, have P-Cards. However, the service contract with the marina operator doesn’t specify that authorized contractors should have access to city-issued credit cards.

“They shouldn’t have access to city funds,” Cantu reiterated. “If they need something, they can submit a purchase order and get reimbursed.”

Despite this, the contractor spent almost $189,000 during the 2023-2024 fiscal year and has already claimed $128,000 in the current year. This includes a $1,170 hotel stay for the annual Marina Industries Conference and Expo, along with lesser expenses like $60 for cake, flowers, and a card at Publix.

For fiscal year 2024, Daytona Beach is allocating $5,000 for travel and another $5,000 for marina education and training, as outlined in city documents regarding P-Card usage. Officials state that this funding is intended to improve marina operations and customer service. However, the contract doesn’t specify that the company is entitled to such funds.

In response, City Manager Derrick Feature has suspended the contractor’s credit card pending a thorough review of the purchases made.

The situation has also captured the attention of state Senator Tom Leake, who represents part of Volusia County. He pointed out that Daytona Beach has undergone audits for other issues before and indicated that these findings might lead to a more extensive investigation.

“I hope the Joint Legislative Audit Committee will broaden the scope of Daytona Beach’s audit,” Leake stated. “We need to look at how this money is being spent, who is giving the go-ahead for these expenditures, and where the receipts are.” He emphasized that misuse of funds erodes public trust in local government.

“Everyone wants local control,” he said, “but every time a city engages in actions like this and the state has to intervene, that control decreases. If we aren’t keeping an eye on ourselves, someone else will have to step in.” Leake mentioned that an investigation by the state attorney’s office remains a possibility.