No criminal charges will be filed as a result of an investigation into city finances by the Kansas Bureau of Investigation.
Lyon County Attorney Marc Goodman announced this morning that he “found no evidence of misuse of public funds or unauthorized writings, i.e., the changing of fund amounts in certain budget items in a false or misleading manner.”
Goodman had called a press conference to announce his decision on whether to press charges in the case, which was opened March 30, “based upon information provided by a person within the city government, relative to city funds.”
Goodman had asked the KBI to conduct the investigation, rather than local law enforcement agencies. The KBI provided its results early in October. Later that month, Goodman requested a supplemental report from the KBI to provide more information before he made a decision on whether the case would require legal prosecution.
The city’s movement of $1.8 million from the utility funds to the general fund was not a criminal violation. Such transfers to cover budget deficits are authorized and are not criminal violations, Goodman said.
“No conduct constituting a violation of criminal law is found relative to any individual within the city of Emporia government, either past or present,” he said.
The transfer amounts were: $350,000 in 2001; $535,000 in 2003; $220,000 in 2004; and $700,000 in 2005.
Goodman said that, in 2003, $19,000 was moved from the drug forfeiture fund into another city fund without a request from Police Chief Mike Heffron. According to state statute, the head of the law-enforcement agency must request forfeiture money be spent on specific law-enforcement purposes, not general expenses.
No further action will be taken, Goodman said, and no wrongdoing by any individual was found.
“There is no evidence of misuse of public funds or unauthorized writings,” he said.
Goodman would not elaborate on specifics of that transfer.
Heffron said this morning that two transfers actually were involved in the $19,000 in question.
The first transfer of $5,000 was made Aug. 18, 2003, and the second, for $14,000, was on Dec. 31, 2003. The money was transferred from the Drug Forfeiture Fund to a drug-purchase fund that is used in investigative cases when detectives need to make drug purchases. The drug purchase fund is a separate line item that needs to be replenished periodically.
“Steve (former city manager Steve Commons) knew that drug-forfeiture money could be used to buy drugs, and that’s a legal use,” Heffron said. “So he, on those two dates, moved (the funds) to beef it up.”
Heffron was unaware that the funds had been moved until some time later.
“He mentioned it to me and I said, ‘You can’t do that without my approval or request or authorization, according to Kansas statute,’” Heffron said.
“So, that’s what it was. He thought he could do it because it was going to purchase drugs. But I have to be involved. I have to request it and authorize it, which I did. ... I’m not being a power broker on that, that’s the law,” Heffron said.
Commons was reached this morning at his office in Edmond, Okla. He said he had not been concerned about the investigation. The utility transfers, he said, already had passed the scrutiny of the city’s auditors.
“It’s good to have the unknown part, the cloud that was over the community, lifted, but it’s not a surprise,” Commons said. “We have been audited annually and the transactions they were looking at, we knew were appropriate. ... Was money spent on something it shouldn’t have been spent on? No. Was money missing? No.”
Heffron agreed.
“I’m glad this is cleared up,” Heffron said. “This little bit of politics has given the city a black eye. And this was politics.”
jewls7969 (anonymous) says...
They ought to investigate Abilene. Hight property taxes but yet nothing for the kids to do here. No ymca, no movie theaters, no game places. They are always having sex here because there is nothing else to do here. They did away with a dollar tree because Alco put in a dollar store of their own that is only open on Saturdays. They didn't want the compition. They won't let another groceries store come in for the south side of town because the West country mart.
February 24, 2008 at 4:30 p.m. ( permalink | suggest removal )