Uncovering Questionable Spending: Corpus Christi's City Manager Under Scrutiny

In a startling revelation, the City of Corpus Christi has found itself embroiled in a controversy surrounding the alleged misuse of purchasing cards by its top executives. The city's purchasing card policy has undergone a swift overhaul, and the City Auditor is now investigating the matter, all while the public eagerly awaits the outcome of this unfolding saga.

Uncovering the Cracks in Corpus Christi's Financial Practices

Allegations of Misuse and the City's Response

Just a month after a public records request was made by KRIS 6 News, the City of Corpus Christi's City Manager, Peter Zanoni, initiated changes to the city's purchasing card policy. This move came in the wake of an allegation of misuse of these cards, which prompted an investigation by the City Auditor.The investigation was sparked, in part, by the public records request submitted by KRIS 6 News in July. Additionally, a city employee made a confidential report to District 5 Council Member and Audit Committee Chair, Gil Hernandez, alleging the misuse of these purchasing cards.As the city prepared its budget for the upcoming year, employees began reaching out to KRIS 6 Investigates, urging them to scrutinize the expenses incurred by the city's top executives, particularly those related to food and entertainment.

Uncovering Questionable Expenditures

KRIS 6 Investigates' request for public documents from the city has been an ongoing battle, with the news team still awaiting the full set of documents they had requested. Despite the city's reluctance to provide the requested information, the documents that have been released reveal a concerning pattern of extensive food purchases made by executives and their assistants.Between September 1, 2023, and July 30, 2024, the city's fifth floor, which houses the top executives, spent over ,000 at local restaurants, including the Yacht Club, Aka Sushi, Koi Sushi, Vietnam, and Katz 21. The city also spent an additional ,000 on snacks and drinks at HEB and Sam's Club, as well as ,000 at the American Bank Center while negotiating Industrial District Agreements.

Defending the Expenditures

City Manager Peter Zanoni has defended these expenditures, stating that they were primarily due to staff having to work through meals, and the city picked up the tab. He argued that these costs are insignificant in the context of the city's .8 billion budget, describing them as the "cost of doing business in the city."However, a closer examination of the reimbursement requests submitted by Zanoni himself revealed that several of these requests were not approved by the Chief Financial Officer, but rather by his assistant at the time. Additionally, the city was found to have paid sales tax on some of these purchases, despite being tax-exempt.

The Hooks Connection: Taxpayer-Funded Entertainment?

The investigation also uncovered that the city had spent over ,000 on Corpus Christi Hooks games between April of the previous year and the end of July 2024. Zanoni defended these charges, stating that the city council, as the "chief ambassadors for the city," should be supporting the Hooks, and that the city has a "sweetheart deal" with the team.The agreement between the city and the Hooks provides the city with suite access and a food and drink allowance of 0 per home game. However, the documents reveal that multiple city departments, including the City Manager's Office and elected officials, were treated to nights at the ballpark, all at the taxpayers' expense.

Auditor's Recommendations and the City's Response

In a memo issued by the City Auditor, George Holland, several observations and recommendations were made regarding the reimbursement requests submitted by the City Manager. The auditor suggested that Zanoni's contract be updated to include a maximum spending limit, that the payment of sales tax be limited or eliminated, and that the City Secretary be the approver of the City Manager's reimbursements or expenditures.Additionally, the Audit Committee and a City Council Member were recommended to review the expenditures monthly. These recommendations aim to strengthen the city's policies and ensure greater accountability to the taxpayers.In response to the issues raised, the city updated its purchasing card policy, including a new section detailing allowable uses for business meetings and meals, as well as a requirement that anyone attending those meetings be listed on the receipt. However, the City Auditor noted that there are still significant gaps in the policy that do not address best practices.As the investigation continues, the public eagerly awaits the outcome and the implementation of the recommended changes to ensure the responsible and transparent use of taxpayer funds by the city's leadership.