ASHEVILLE — More than $400,000 of sales tax revenue that officials said would fund only new construction at Asheville-Buncombe Technical Community College instead was diverted to pay county employees, including corrupt administrators Wanda Greene and Jon Creighton.

Buncombe government also began using the revenue to pay for A-B Tech operations long before county commissioners decided to expand use of the tax.

Records released to the Citizen Times show none of the nearly $16 million transferred to the county's own coffers was spent on capital projects. That amounts to about 20 percent of all revenue generated by the tax, a pot of money that community leaders promised would fund a $130 million building plan at A-B Tech when they pitched it to county voters almost eight years ago.

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►A-B Tech still wants to know how Buncombe spent $15M of college tax revenue

► 'Wanda is going to go to jail.' But for how long? And what about other corrupt staffers?

A proposal on the table attempts to reach a resolution, though it won't completely fulfill campaign promises made nearly eight years ago. If approved by county commissioners Tuesday, Buncombe still would continue to use some revenue to help cover its state-mandated contribution to A-B Tech — and the college would fall short of the $130 million figure discussed during the voter referendum.

But county staff has pitched an agreement that they say allows both Buncombe and A-B Tech to reap the benefits of a tax generating millions of dollars more than originally projected. Without the deal, they warn, the county may have to consider a major property tax raise.

In a statement to the Citizen Times, A-B Tech President Dennis King said "the facts speak for themselves."

"The Article 46 sales tax was a visionary opportunity for A-B Tech to go from good to great and to put us in a position to compete with the best community colleges in America," he said Friday. "In fact, we were able to do that when the sales tax funds were used to construct the new Allied Health building, a state-of-the-art facility for our health programs that is the envy of other colleges.

"But our original vision was to take other areas of the college from good to great, and that critical point is being lost in this current discussion of how the sales tax money has been used or will be used in the future."

When asked whether the county knowingly spent the money differently than how it was billed during the voter referendum, the county responded: "It was purposely done by one person, not by the board," senior attorney Michael Frue said Thursday.

"It wasn't done in an upfront and transparent manner."

More controversy over pay for top Buncombe managers

In a two-year period, more than $450,000 was used to help pay for three county salaries: former managers Greene and Creighton, and construction administrator Greg Isreal.

Records show $252,170 was spent during the 2015-16 year. The remainder was spent in 2016-17.

Nearly $94,000 went to Greene's $312,649 annual pay, which includes benefits, during the 2016 fiscal year. Roughly $69,000 of Creighton's $229,837 pay was covered by A-B Tech revenue. About $89,000 went toward Isreal's $198,721 salary.

Employee records released following Greene's retirement showed that between 2015 and 2017, Greene received another $705,250 for other pay that included annual leave, a so-called retention incentive and exempt compensatory time.

During the same time, Creighton received $577,191 in additional pay through supplements, his retention incentive and annual leave payout.

Isreal retired from the county after serving as general services director. He now serves in what is considered a temporary position overseeing construction and maintenance needs at A-B Tech, earning a nearly $68 hourly rate.

Described as reimbursement to the county's general fund for staff support, the county said the use of A-B Tech salaries was based on how much time the employees spent on college projects. Isreal spent 45 percent of his time on A-B Tech-related work, Buncombe said, and therefore the college's tax revenue paid for 45 percent of his salary,

Creighton and Greene each spent 30 percent of their time on A-B Tech projects that year, the county said.

A local bill passed by the state General Assembly in 2013 means Buncombe government is responsible for A-B Tech construction. Officials did not provide a response to why Greene would be reimbursed for duties already considered part of her job, nor did they provide any information on what projects Greene worked on for reimbursement.

County spokeswoman Kassi Day said it "has no documents that would be considered responsive."

See:

►In Buncombe corruption investigation, 5 plead guilty. But 2 of them haven't paid up.

►Answer Man: Indicted Buncombe officials made over $20M from county?

Controversy has surrounded the former managers' pay before. Benefits like the retention incentive allowed Greene to make more than $500,000 during her final six months of employment. Among the four felony counts to which she pleaded guilty under an agreement with federal prosecutors is a charge for making and subscribing a federal tax return.

Greene claimed in a tax return that she was the sole proprietor of a business named Buncombe County, which earned no income but incurred more than $37,000 in expenses.

Creighton also received significant perks, including a supplement for serving in dual roles and a retention incentive that amounted to an extra year of salary.

Both, along with former County Manager Mandy Stone, admitted to cashing in on unused paid time off that should have been used when they were on vacations paid for by Georgia-based contractor Joe Wiseman. County policy allows employees to sell back unused leave.

Wiseman and the former managers await sentencing after all pleaded guilty to federal charges connected to a yearslong kickbacks-for-contracts scheme.

Vice-Chairman Mike Fryar, who also serves on the A-B Tech board, said he "absolutely" did not know that the revenue meant for the college went toward salaries.

"I don't know what to say anymore," he said Thursday.

Money was spent on A-B Tech operations, other programs

Less than a month before Greene retired, commissioners unanimously passed a resolution that expanded how they would use the A-B Tech tax. It now stipulates that Buncombe can use proceeds for operational needs and major maintenance.

Commissioners approved the change in 2017 after less than 15 minutes of discussion.

"I think this addition for major maintenance, long-term, will protect the investment that the sales tax was set up for in the first place," Commissioner Joe Belcher said at the time. "So I'm happy to make a motion to approve it."

Several projects have been completed and are being paid off with A-B Tech tax revenue, including a $41 million Allied Health building and a $15 million parking deck. But records show the county was using the tax to fund operational needs four years before receiving an official blessing by commissioners.

Beginning in mid-2013, the county used at least $200,000 to fund operations at the Public Safety Training Center. That number rose to nearly $670,000 by the 2016-17 year.

Buncombe also used more than $1.7 million to pay for utilities and cover an increase in its Humane Alliance contract for A-B Tech's veterinary program, as well as $964,000 to reimburse itself for debt service related to college projects that were financed prior to the 2011 referendum.

A 2018 Citizen Times analysis of Buncombe’s annual financial reports show the county began transferring quarter-cent sales tax revenue to its general fund as early as the 2013-14 fiscal year, about a year after the tax was authorized.

The general fund pays for most county services, including public safety, schools and economic development efforts. That includes its contribution to A-B Tech, which helps pay for operations and some maintenance.

State money makes up most of the community college’s funding.

The county's first transfer of A-B Tech tax revenue amounted to some $249,000. This fiscal year, it was $6.5 million. That number has largely risen each year, and during that time Buncombe has slashed its share to A-B Tech — a move that hindered the college's mounting list of maintenance needs, some board trustees have said.

Frue said commissioners previously were unaware the money was spent on salaries and other operational needs. When commissioners approved the annual transfers, they weren't provided detailed information on how the money would be spent, he said.

Frue said Greene directed staff on spending decisions.

"Was it done properly and in a upfront and open manner? I don't believe so," he said. "Why (was it done that way)? I don't know."

A quarter-cent sales tax amounts to 2.5 cents on every $10 purchase in Buncombe. Officials said at the time that some 30 percent of the revenue was projected to come from county visitors.

By July, the tax is expected to have generated a total that nears $80 million.

"I think the practical problem is this fund is providing more money than originally anticipated," Frue said.

Nationwide, quarter-cent sales taxes are used to find sources of revenue other than property taxes to fund government operations, he said.

"So if this were to suddenly disappear, that'd mean a 5-cent tax rate hike."

A breakdown of how the county spent $15.9 million is below.

County, A-B Tech nearing a resolution? Or a 5-cent tax hike?

Despite the misspending, officials may be close to a deal. Commissioners on Tuesday will vote on an agreement that seeks to resolve the longstanding issues over the A-B Tech tax.

Under the plan, the county will agree to cap its general fund transfer to $5 million and increase the annual allocation for A-B Tech maintenance — addressing the college's $25 million backlog of maintenance over eight years and building a fund balance that could cover future construction of a new college building.

The latest version comes after A-B Tech's Board of Trustees voted in a split vote to accept a deal, albeit with some changes: It has asked the proposal include additional requirements that ensure savings created by the tax revenue goes to new construction at the college.

The agreement would span eight years. Officials have made no mention of intentions to ensure the tax sunsets as originally promised.

To address a lingering concern, officials will request the state General Assembly back the agreement with a local bill to make it legally binding.

At least one commissioner has voiced support: Fryar, who opposed the tax amid the 2011 referendum.

But commissioners Chairman Brownie Newman has raised concerns the proposal would not fully fund the $129 million plan that was pitched to voters. He said he hopes commissioners are open to "strengthening" the plan Tuesday.

"There are other aspects to this issue as well, but in my mind the biggest shortfall is that it doesn’t guarantee the level of funding that the public was told would be invested for A-B Tech capital," Newman has said.

Frue said if approved, commissioners fully intend to abide by the agreement. Part of it would include support for a local bill by the General Assembly.

"I understand the level of distrust the trustees have toward the county, but I wanted to make sure they understood that really was sourced by one former employee of the county," he said. "And she's no longer around."

By the numbers

Financial reports show Buncombe County began annually transferring A-B Tech sales tax revenue in mid-2013. Here's how the $15.95 million figure breaks down, based on type of expenditure, over the six-year period.

A-B Tech operations: $12,696,153

Public Safety Training Center operations: $1,667,259

Debt service related to A-B Tech projects that were financed prior to 2011 voter referendum: $964,630

Buncombe County salaries and benefits: $452,170

Vet Tech program, 20 percent share of utilities: $86,041

Vet Tech program, increase to Humane Alliance Contract: $80,000

Total: $15,946,254