A financial audit by Haynie & Company found about $70,000 of public funds approved by Susan Smith, Visit Bastrop’s former CEO, lacked proper documentation between 2021-23. According to the audit, food and entertainment expenses were referenced related to the improper use of funds.
The context
In August, all four Visit Bastrop employees submitted statements addressing misconduct by Smith, including excessive spending and inappropriate use of public funds.
Visit Bastrop is primarily funded by hotel occupancy tax public funds. An investigation into financial mismanagement allegations against Visit Bastrop was approved Aug. 10.
In August, the city hired Haynie & Company to perform a financial audit of Visit Bastrop. City Council received the results of the investigation Dec. 18 and moved to file an ethics complaint against Nelson.
The complaint against Nelson alleges that he refused to provide requested material, including text messages, for the investigation into Smith's conduct. The complaint also alleges that Nelson knew Smith misused public funds.
Nelson began his term as a city official March 28, 2022, when he became a member of the Bastrop Economic Development Board. According to the investigation, Nelson began a romantic relationship with Smith in August 2022. He later took office as mayor in June 2023.
In an email to Community Impact, Nelson said all his official correspondence, including texts and emails, were provided through the city phone and computer. Nelson said he also engaged in email correspondence and a Dec. 12 interview with the investigating attorney.
“In my opinion, there was no ethics violation by me. When the Ethics Commission is provided with the facts, this will be confirmed,” Nelson said in an email to Community Impact. “The fact that council is spending time, effort and taxpayer money on this rather than giving their full attention to delayed projects such as our Water Plant, our Wastewater Plant and other needed public projects is baffling.”
The background
Nelson told Community Impact he was not aware of the misuse of funds by Smith and never used his position to influence the Visit Bastrop budget.
“While I had conversations as did others, I never advocated for or against Visit Bastrop with anyone, nor did I vote as the mayor has no vote,” Nelson said in the email.
The complaint alleges a conflict of interest during Nelson’s time on the Bastrop Economic Development Board and while in office as mayor.
The city of Bastrop hired attorney Sarah Glaser of Lloyd Gosselink to conduct a fact-finding report.
“There was a friendly relationship that she and I had, and there perhaps was romance involved in it,” Nelson said in an interview with Glaser on Dec. 22. “I will say there was some romance in there, but to allude to the fact that that romantic relationship was a sexual relationship, I think, is reaching—overreaching.”
In the interview with Glaser, Nelson said his relationship with Smith had concluded by Aug. 10, 2023.
The issue will be addressed at the next ethics committee meeting date still undetermined.
