WILMINGTON, Del. (AP) - The mayor of Delaware’s largest city is suing the city’s treasurer, saying she is overstepping her authority.
The lawsuit filed Wednesday claims Velda Jones-Potter has been scheduling and withholding payments from the treasury without authorization.
The lawsuit follows a warning letter that Mayor Michael Purzycki sent Potter in April, accompanied by a city solicitor’s opinion. The letter was prompted by Potter’s announcement that she intended to pay $1.2 million off a $3.4 million loan to J.P. Morgan related to the Wilmington Housing Partnership.
The nonprofit partnership was formed to renovate blighted houses but ran out of money because of financial mismanagement. The lawsuit says Potter has refused to participate in negotiations for a debt-refinancing bond issuance.
It also claims she has withheld rent payments for the city’s leased-access television station.
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