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Ripley delays $18,000 annual payment as trustees, nonprofit dispute Rice Park finances
Summary
City lawyers recommended holding the city's annual $18,000 payment for Rice Park amid unresolved accounting, signature authority and insurance questions involving the WGL Rice Trust and a newly formed nonprofit board.
The City of Ripley will withhold its annual $18,000 contribution to Rice Park after city attorneys said outstanding questions about accounting, signature authority and insurance remain unresolved.
City Attorney (name not specified) told the board at the Feb. meeting that the city had previously voted to hold funds "due to management of funds and lack of leadership issues by the trustees and current corporate board members." The attorney said trustees' claims in a recent letter misstated the board's prior motion and that several concerns remain unanswered.
Why it matters: The withheld money is intended for park maintenance and programming at Rice Park. City leaders said they want a clear accounting before releasing public funds and that transferring the park to a nonprofit corporation should include transparent documentation of what assets and liabilities are moving with the property.
The attorney listed the city's continuing concerns: there are no annual financial statements for 2023 and 2024; earlier commingling of funds between the trust and the nonprofit was not explained after repeated requests; the city could not identify the current account name or authorized signatories for trust funds; and there was no clear evidence that the trust was named on the insurance declarations page or that the limits and types of coverage were documented. The attorney also said a person who signed correspondence as "secretary/treasurer" had no court-authorized title for the trust.
The lawyer also described a financing arrangement for an insurance premium and an initial payment of $3,812.52 submitted on Nov. 11 to establish coverage. The trust would have a $1,951.81 payment due Feb. 8 and additional installments of $1,951.81 due May 8 and Aug. 8, 2025; the lawyer said those future obligations would not automatically bind a subsequent owner of the property.
Board members who spoke during the discussion said they want park improvements to proceed but that city policy requires financial documentation before releasing funds. Mayor Pritchett and several aldermen indicated they were open to a meeting with the Tennessee Attorney General's office to have an independent official explain options and answer trustees' questions; the city attorney said the AG had offered to meet but trustees had not yet scheduled.
The board did not take a separate vote during the discussion; city staff said the city will continue to hold the funds while it seeks documentation and options for resolving the trust/corporation transition.
The discussion occurred during the agenda item forwarding correspondence from the WGL Rice Trust and related requests to release annual city contributions.
