Speaker urges independent audit of Trail Conservancy Phase 2 expansion, cites reserve shortfall

Diana Prechter, a member of the public, told the Audit and Finance Committee on March 26 that city parks staff are allowing contract terms to be violated in ways that could financially benefit two nonprofits, the Trails Conservancy and the Trail of Lights nonprofit.

Prechter told the committee she found “a deficiency in the reserve fund” and said the conservancy reported a nearly $500,000 loss to the IRS for the year ending December 2023. She asked the city auditor to perform “a full audit” of her Phase 2 audit request before the city advances the conservancy’s expansion request.

Why it matters: Prechter said the Phase 2 expansion — approved in part by the city manager on May 24, 2024 — would, over a two‑year transition, give the conservancy concession revenue across four park zones but would not add operations and maintenance responsibilities. She warned that the target reserve fund figures documented by city staff differ from spreadsheets she says were prepared by the partnership manager. Prechter cited a 2022 spreadsheet that she said supports a final target reserve fund “at or near $487,000,” and she said a March 2025 email from the parks director lists a target of $230,000.

Committee response and next steps: Committee members did not take formal action on the public comment. Prechter requested the city auditor examine contract compliance and reserve calculations before the city advances Phase 2. The committee received her materials by email, according to the public record.

Details and context: Prechter said the city manager partially approved Phase 2 in May 2024 and that the conservancy contract runs 25 years with options for an additional 25 years. She cited a recommendation from the Environmental Commission (Feb. 19) to delay implementation of Phase 2. Prechter said the conservancy’s reported losses and the lower reserve target together could “injure the financial security of Lady Bird Lake Metropolitan Park in perpetuity.”

What the committee has on the record: Prechter told the committee she delivered supporting documents, including the partnership terms and the 2022 spreadsheet from a partnership manager (identified in the meeting as Christine Schute Canule/Shute Canule). She asked that the city auditor perform an independent review before council advances the Phase 2 partnership agreement.

Ending: The committee did not set a deadline or direct staff to open an audit. Prechter’s request remains a public comment and a written audit request on file; committee members and city auditors may choose whether to open a formal audit based on the materials submitted and standard audit‑acceptance processes.