By J.B. Smith

Tribune-Herald staff writer

The Waco Police Department is investigating allegations of misuse of money at Downtown Waco Inc. at the request of the agency’s own board, Police Chief Alberto Melis said Tuesday.

Melis would not discuss details of the investigation, such as possible suspects or how much money might be involved, but he said it could result in felony charges.

“I suspect this is going to take a while,” Melis said. “Hopefully, weeks.”

A recent internal investigation by Downtown Waco’s board found evidence of missing funds, and the agency received a restitution check of $70,000 in late September. Downtown Waco board members have not disclosed who wrote the check.

Board representatives met with police Thursday about the alleged financial irregularities, and police began an active investigation Friday, Melis said. Downtown Waco Inc. also was seeking to hire an out-of-town firm to do a detailed audit of the agency’s books.

Downtown Waco Inc. officials notified the city of Waco about the problems in mid-September.

Since then, the city and McLennan County, which provide three-fourths of Downtown Waco’s $473,825 budget, have suspended payments to the agency.

Asked why the city didn’t refer the case to the police earlier, City Manager Larry Groth said he wanted to give Downtown Waco’s board time to pursue its internal investigation and get the audit started. He said he has been part of the discussions that launched the current investigation.

Downtown Waco Inc. offices were open with limited hours and partial staff this week, including interim executive director Toni Herbert, who has helped with the internal investigation. Herbert took over the executive director position in July from Margaret Mills, who had served for 18 years.

Board president Scott Felton, who could not be reached late Tuesday, has said none of the current staff are suspected of financial improprieties, but he has not said who is the target of the investigation.

Downtown Waco Inc. had contracts with the city to market downtown and the Brazos River corridor and administered money from the downtown Public Improvement District. The city collected an extra tax of 10 cents per $100 valuation in the district, revenues that paid for extra security, landscaping and sanitation downtown.

The city of Waco has taken over those duties, and there should be no interruption in service, Groth said.

jbsmith@wacotrib.com

757-5752