Wednesday, November 2, 2011

Is Ridenour Funneling Taxpayer Money to For Profit Organizations?

By Emerson Drake
3/10/11

Following is a quote from Mayor Ridenour, used during the state of the city speech, "There are currently nine community neighborhoods up and running across Modesto. Mike Moridian from the La Loma neighborhood has been working hard on this effort.

The mission is simple - provide residents the tools to improve their neighborhoods and transform their city".But are they creating neighborhood associations or political action committees? Our question to you is, is that the whole story?An inquiry was made to the City of Modesto Business Licensing/Finance Dept. regarding the status of the LLNA (LaLoma Neighborhood Association) business license.

A representative from the city contacted Mike Moradian, President of the LLNA who said, and her superiors concurred, he didn't need a business license since he was running the LLNA News Letter business (collecting advertising money) through his M.K. Consulting (a for profit venture) firm which has a business license.Now if this is true that would mean the City of Modesto is supporting a for profit business with taxpayer funds.But it appears that Mr. Moradian has been using the old account of the LLNA for his transactions.

This entity has been suspended by the state.The LLNA does not have a business license nor is it a recognized nonprofit.City Attorney Susan Acala Wood has been asked by us to immediately inform all individuals necessary (city employees) to suspend support, in kind or monetary contributions, and ask that the city recover any and all city incurred expenses for the last year and a half on the LLNA (or since the LLNA stopped being a nonprofit).

Not only do we have concerns that the Council is using taxpayer funds to support a " for profit business", but we are also concerned that the city is funding campaigns for city council by providing free polling information to council candidates under the guise of questionnaires sent to residents through their sewer and water bills as was the case in the CollegeNeighborhood and, we are led understand, other neighborhoods around the city.

We have been, and always will be, in favor of neighbors helping neighbors, but when the council funnels money to for profit companies or council campaigns we draw the line and believe this should be brought in front of the entire city council for review.The council has an ethical obligation to the citizens of Modesto to use the citizens tax money wisely and legally.

We believe they've failed to live up to that obligation.