When Wilmington Treasurer Velda Jones-Potter requested a discretionary fund in the budget process earlier this year, she told The News Journal the $8,000 would be used to support financial literacy in the city.

"My support and my engagement with the community will be along the lines of financial education and the financial empowerment arena," she said in May.

But spending data released by Jones-Potter's office, in compliance with new requirements passed by City Council, shows that the taxpayer dollars have gone elsewhere. Of the 13 grants her office has awarded from June through September, one was related to financial literacy: $500 to the Delaware Financial Literacy Institute.

The remaining grants ranged from $40 to $750 and were awarded to non-finance-related nonprofits for community events. Recipients include Parents with Incarcerated Children Inc., Police Athletic League of Wilmington and the Afro-American Historical Society of Delaware.

"Coming from the treasurer's office, (grants) should be to promote better fiscal responsibility," said Councilman Bob Williams. "The money needs to be specific and targeted toward what your mission is."

The role of the city treasurer is to be the custodian of city funds. Duties include managing the city's cash and debt and administering the city pension program.

Jones-Potter said in May that discretionary funds allow elected officials to support positive work in the city.

"What’s important is that the way in which one uses of those funds are consistent with the business strategy and the work you’re trying to further," she said at the time.

Some of the groups who received funds from Jones-Potter said the donation had no connection to the subject of finance. One hundred dollars to the Delaware AIDS walk went to the "general pool of donations," said Iris A. McKenney, the fundraising and communications manager. Three hundred dollars went toward tickets for the Latin American Community Center's annual ball, the organization said.

The grants came from a new $8,000 "grants to agencies" fund Jones-Potter requested for her office this year, which was approved by Mayor Mike Purzycki and City Council. Former longtime Treasurer Henry Supinski did not have such a fund, records show.

On Monday, Jones-Potter disputed that the purpose of her new fund was strictly for finance-related programs.

"Our support was never exclusively for financial literacy support," she said. "Our support is inclusive of financial education but also general support and engagement with the community as an avenue to create opportunities to know their needs."

But that's not the impression she gave the mayor during the budget process, according to Purzycki's office.

John Rago, Purzycki's deputy chief of staff for policy and communications, said in a statement that Jones-Potter requested that a discretionary fund be added to her budget specifically for the purpose of "offering financial literacy programs for citizens."

"We viewed that as a reasonable request and expect the funds to be used as stated," Rago said. "If the funds were not used for that purpose then it’s all the more reason why discretionary spending will have to be thoroughly re-examined during the next budget process.”

City Council Communications Director Antoine Oakley, City Council President Hanifa Shabazz and Finance Chair Bud Freel did not respond to requests for comment.

Jones-Potter also requested and received several other pots of money that are new for the treasurer's office: $18,000 for community services, $25,000 for computer software, $700 for food, $3,500 for business meetings and $19,000 for consultants, her budget shows. That doesn't include the $25,000 her office received for orientation and training.

Although the mayor said earlier this year that the city faced a “looming debt crisis” that required cutting sixteen firefighter positions and raising property taxes, the treasurer’s budget was 285 percent higher than that of her predecessor, the budget breakdown shows.

Unlike in the past, the treasurer's office was not subject to a budget hearing this year where City Council and the public could ask questions about proposed expenditures.

That's a problem, according to John Flaherty, director of the Delaware Coalition for Open Government.

"The treasurer has to explain why this is necessary," he said. "Everybody should go through the budget process where the public has input."

The mayor's office and the city council are also not subject to budget hearings.

Councilman Williams said he couldn't recall any discussion about the city treasurer's new discretionary fund before voting on the budget. Creating a requirement for the treasurer's office to have a budget hearing is "something I'm going to have to look at," he said.

The city's discretionary spending has come under scrutiny this year after The News Journal published a report about the lack of oversight and transparency for council's roughly $450,000 fund.

BACKGROUND

Little oversight for Wilmington City Council discretionary fund

Wilmington City Council must fix discretionary funds problem: Editorial

Wilmington councilman: Require public meetings for discretionary fund

'Significant enhancements' coming to Wilmington council discretionary fund

That attention has spurred a state audit of the council's fund, internal policy changes and legislation that requires more public disclosure of grant expenditures. The council unanimously decided last week to require all city grants $5,000 and up to be approved by a full council vote. Smaller grants will periodically be reported to the finance committee, and all branches of city government agreed to post spending online.

That new law applies to council, the mayor's office and the city treasurer's office.

"I’m glad the transparency is starting to shed some light on otherwise unknown discretionary spending," Williams said. "It will now give us the opportunity to scrutinize that type of spending."

For Flaherty, Jones-Potter's expenditures show a need for a volunteer board to review the merits of grant spending.

"You're talking about using taxpayer funds to dish out as you see fit," he said. "Government is best when it acts as an oversight (body) for spending rather than dispensing money themselves."

Jones-Potter said her spending is within her job duties.

"We're building and establishing these relationships."

Contact Christina Jedra at cjedra@delawareonline.com, (302) 324-2837 or on Twitter @ChristinaJedra.