Public commenter presses council on City Stars oversight; city attorney says FBI seized cash but has not flagged concerns to city
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Summary
At the March 3 meeting a resident urged the council to act on governance concerns involving City Stars; City Attorney Carol Duncan said the FBI seized cash during an initial visit and the city has limited employee questioning to avoid interfering with the federal investigation.
A member of the public and several councilmembers pressed for clarification on the City Stars youth‑sports accounts and whether the city or a nonprofit controlled certain transactions, prompting legal caution from the city attorney about internal questioning while a federal inquiry proceeds.
Matt Daniel, who identified himself as a resident at 2203 Doral Drive, told the council he had lost confidence in Mayor Harold Copenhaver’s leadership and presented documents he said showed an “entangled relationship” between City Stars and city employees. "When public statements do not align with written records, when oversight appears blurred... Jonesboro deserves clarity," Daniel said, urging the council to state whether it had confidence in the administration.
Councilmembers raised specific questions about roughly $70,000 remaining from City Stars, whether parade funds were routed through the nonprofit and whether any employees had been paid in cash for sports events. Councilmember (speaker 9) asked whether the city had confirmed that parade transactions were run through City Stars and requested the documentation be shared with the full council.
City Attorney Carol Duncan said on the record that the FBI "has not expressed [concerns] to us," and added that federal agents had seized an amount of cash during their initial visit to the Parks Department that agents are seeking to return to the city. She said city leaders paused internal employee questioning earlier to avoid interfering with the FBI investigation and offered to reach out to the investigator to determine whether the city may now proceed with its own interviews.
Staff and council discussed the mechanics of the City Stars transition: the nonprofit board voted to transfer money to the city so the city could manage youth sports finances, and finance staff have been integrating accounting controls into the municipal system. Finance official Steve Pertit told the council the remaining youth‑sports reserve was about $70,000 as of Dec. 31, 2025 and that legislative auditors would begin the 2025 audit the week of March 9.
No formal disciplinary action or vote on governance changes was taken during the meeting. Council leadership said a specially called public services meeting will be scheduled to follow up on outstanding questions and that staff will provide documentation and updates to the full council as requested.
What happens next: the city attorney will check with the federal investigator about whether city interviews can proceed; a special public services meeting will be scheduled for follow up and council members requested the relevant financial and FOIA documentation be circulated to the full council.
