Billings Backed $5K for Nonprofit Board He Served

Fate, TX – Former Mayor David Billings, while still serving, asked city officials to increase taxpayer funding for a nonprofit where he served on the board of directors, then voted to approve a city budget containing that money, Pipkins Reports has learned. The nonprofit Children’s Advocacy Center of Rockwall County was allocated $5,000 as Billings requested. Despite the city’s own ethics code that expressly prohibits council members who serve on nonprofit boards from voting on that organization’s funding requests.

The incident occurred when the Council approved its fiscal year 2024–2025 budget.

The emails and documents obtained by Pipkins Reports as well as the meeting video of the actual approval of and city ordinance raise a serious question: Did Billings violate Fate’s ethics rules by participating in a budget vote that included funding he had personally encouraged the city to increase? Furthermore, did City Manager Michael Kovacs assist him with this act?

The Emails Tell the Story

Records obtained by Pipkins Reports show Billings was actively involved in discussions about community service funding months before the budget vote.

In an email dated May 13, 2024, with the subject line “Mayor and Council Budget,” Billings asked city officials to confirm existing allocations, including $2,500 for the Children’s Advocacy Center (CAC). He then wrote, “I would like to increase the funding for MoW, Lone Star CASA, and CAC.”

Billings also asked City Manager Michael Kovacs how a child safety fee collected through county vehicle registrations could be passed through to CAC.

The correspondence continued. In a June 28, 2024, email to Kovacs and other city officials, Billings asked whether funding for WIN, Lone Star CASA and CAC could be increased to $5,000 each.

“Additionally, can we increase WIN, Lone Star Casa, and CAC to $5000?” he wrote.

The adopted budget ultimately included $5,000 for CAC. The emails establish that Billings advocated for the increase before the council considered the budget. The City Manager, complied with his request.

The Ethics Code Is Explicit

Fate’s Code of Ordinances, Section 2-310(a), states: “No member of the city council who is on the board of a nonprofit organization may vote on any funding request by that nonprofit organization,” unless the nonprofit has a board appointed in whole or in part by the city council.

The language is direct. The provision does not require proof that a council member personally profited from the funding. It addresses the member’s position on a nonprofit board and the vote on that organization’s funding request.

2024 IRS Form 930 of the Children’s Advocacy Center lists Billings as a director. That supports the board connection, although additional contemporaneous records would establish his precise status on the date of the vote.

The ordinance contains an exception for nonprofits whose boards are appointed in whole or in part by the city council. Pipkins Reports could find no document that Billings position to the CAC board was due to appointment by the council.

Chinn Raises the Issue During the Vote

The September 3 meeting video provides another key piece of evidence.

During consideration of the budget, Councilwoman Codi Chinn stated that she wanted the $5,000 CAC allocation removed. According to the video reviewed by Pipkins Reports, Billings responded that it was too late in the process, and dismissed her concerns. A motion, made by Councilman Harper was already on the floor to approve the budget.

Chinn’s statement put Billings board membership on the record. She and Councilman Mark Hatley ultimately voted against the budget, while Billings voted in favor of the budget that he helped create, which included $5000 for the CAC.

[VIDEO: SEPTEMBER 3, 2024, BUDGET VOTE]

Taxpayers Deserve Straight Answers

Billings’ emails document his effort to increase CAC funding. The video of the meeting documents his participation in the budget vote. The city’s ethics code establishes a specific restriction on council members serving on nonprofit boards.

Those facts warrant answers from Fate officials. Did Michael Kovacs know that Billings was on the Board of Directors when he drafted the budget? It turns out, the answer is, yes, as early as March of 2023.

In March of 2023, Billings shows he wanted the public to be aware of his involvement with the CAC and asked that his role on Board of Directors be highlighted in a press release.

If Councilwoman Chinn was aware of Billings connection to the CAC, and City Manager Michael Kovacs knew he was on the Board of Directors of the CAC, who else on the council knew? Did Mark Harper, Scott Kelley or Allen Robbins know that Billings may, allegedly, be in violation of the City Ethics Code? Was there any attorney / client discussions about this matter prior to the meeting? If so, did Billings ignore the concerns of council and vote anyway?

Public officials are entrusted with taxpayer money, not granted a personal exemption from the rules governing its distribution. Current and former council members should explain what they knew, when they knew it, and why they voted as they did. Any private discussions regarding this matter should be made public.

Fate residents should not have to guess whether the people approving their budgets are following the law. They should be able to see the evidence, hear the explanation and judge the answers for themselves.

*Pipkins Reports reached out to Billings to ask him about his involvement with the CAC and his vote to increase their funding. As of publication we have received no response.