Norfolk puts clamp on revenue commissioner

NORFOLK

City Manager Regina V.K. Williams has ordered Commissioner of Revenue Sharon McDonald to freeze all hiring and travel until an auditor completes a review of her office's expenses.

The hiring freeze went into effect Thursday after Williams learned that an employee in the commissioner of revenue's office had been transferred from city to state payrolls and given a raise last week, Mayor Paul Fraim said.

Most city employees have not received raises in more than two years.

The travel freeze was imposed because of McDonald's use of a city- issued credit card while lobbying the General Assembly in Richmond during the past three years, Fraim said.

"I think the manager has taken action that was called for in order to correct some poor management decisions from the commissioner's office," he said.

While McDonald is an elected state official, the salaries of all 38 employees in her office, including her own, are at least in part subsidized with city dollars. Fraim said he believes Williams has the power to freeze McDonald's travel expenses and hiring.

Williams refused to return a phone call and e-mail on Monday. However, The Virginian-Pilot obtained a copy of the letter Williams sent to McDonald from a city official who asked not to be identified.

Williams forwarded a copy of her letter to the City Council on Monday noting that, "There may be a Virginian-Pilot story soon concerning the memo." She wrote to council members that she believes "this was a prudent course of action to take until the matter can be discussed further."

"I have declined to make any comments to the media," the memo said.

McDonald acknowledged Monday in an e-mail that she had received Williams' letter and plans to meet with her next week. She refused to respond to any other questions.

City auditor John Sanderlin is investigating whether McDonald improperly used a city credit card when she spent thousands of city taxpayer dollars while lobbying. He is also reviewing all financial records from her office for the past five years.

McDonald has not repaid the city for more than $11,000 in expenses accrued in 2008.

She has denied any wrongdoing, saying she was lobbying for her office and other commissioners of revenue throughout the state.

McDonald also took an aide, William Neill, with her to Richmond during the law-making sessions.

Last week, Neill resigned as a city employee in the commissioner's office and then was rehired by McDonald as a state employee. In the process, he received a 5 percent raise. Nancy Olivo, the city's director of human resources, said Neill's salary increased from $34,951 to $36,720.

McDonald has also refused to provide information to The Virginian-Pilot on Neill's travel expenses.

On July 12, the newspaper filed a Freedom of Information Act request seeking copies of Neill's expenses when he accompanied her to Richmond.

McDonald was required to respond by July 19. On July 30, she e-mailed the newspaper seeking permission to provide the documents after Sanderlin's audit is done.

"In addition to the time I have spent on the audit, I have 3 staff members assigned to this matter pretty much full time," she wrote. "It's hard for me to justify allocating more resources preventing us from doing the work the taxpayers and citizens expect from us. I appreciate your consideration and acceptance of my request."

The Pilot denied her request and McDonald was told that she needed to provide the documents by Monday afternoon. "You do not have the option to delay a response," Assistant City Attorney Tasha Scott warned McDonald in an e-mail last week. "You could be held personally liable with a civil penalty of $250-$1,000 for willfully and knowingly withholding the requested documents."

Fraim said that when the city's court judges travel for work, they are required to submit voucher requests before they spend any money.

"Its a very straightforward system," he said. "My advice is that's the way we go for constitutional officers. However, this issue only comes up with the commissioner of revenue."

Harry Minium, (757) 446-2371 harry.minium@pilotonline.com