All Things Carmel Costs Taxpayers $1.2 Million, Will Not Repeat

Finding from a detailed financial and legal review initiated to ensure appropriate use of taxpayer dollars were discussed at a recent meeting of the Affiliate Review Committee. The review focused on the operation of All Things Carmel retail store and its supporting organization, Promote Carmel, Inc.

The review revealed that the store operated at a loss since its inception and would have required an additional subsidy of $100,000 to remain open. This prompted Mayor Sue Finkam to call for prioritizing important expenditures such as police and fire staffing, as well as road maintenance.

“Running a gift store was not an essential City service and subsidizing it did not serve our taxpayers,” Finkam said. “That’s why we took steps to close the store and redirect those taxpayer dollars to public safety and other essential services. I appreciated the City Council’s support on the immediate and decisive actions we pursued to be a better steward of taxpayer resources.”

The review also found that some use of taxpayer funds and donor-directed funds conflicted with city policies and with laws governing the non-profit status of the supporting organization.

“We came into office with the intent to protect taxpayers by increasing transparency, oversight and accountability in government operations,” City Councilor Ryan Locke said. “The findings from this review highlight some of the issues that can arise with unchecked executive authority. The work of this committee will help us build the right framework of checks and balances to ensure our government and any of its affiliates will operate in the best interest of our city and our citizens – which is, and should always be, the most important mission.”

As part of the store's closing, all vendors have been paid and all products returned. The Indiana Secretary of State’s Office approved dissolution of the nonprofit March 27.

The review found that the store received annual subsidies exceeding $1.2 million over five years. Mayor Finkam emphasized the importance of prioritizing taxpayer dollars towards essential services like public safety and road maintenance, rather than subsidizing a loss-making retail venture.