Support for my Beacon’s Diane’s Corner Articles
What about the missing $3.5M on the City’s financials?
Posted 1/11/25
Documents that support this column:
Link to full article:
https://www.edmondsbeacon.com/stories/what-about-the-missing-35m-on-the-citys-financials,108915?
link to full article:
Bad Administration Advice Taints environmental perspective potentially impacting pure water!
This thread has been updated to alert Council of the AI generated recommendations for changing the Code to prohibit UIC wells in the Deer Creek CARA.
Documents that support this column:
Updates regarding attempting to get Council to change code rather that spend money on Attorney.
RFA: Digging into the Fitch Report
https://www.edmondsbeacon.com/stories/rfa-digging-into-the-fitch-report,116897?
Off-Leash Park: For the Love of Dogs
Political Retribution, Secrecy Costing Taxpayers Millions
After the debacle with Mr Hines regarding changing the financial statements from a modified working capital approach to financial statements that mirrored the City of Redmonds, Mr. Hines filed a complaint against Finance Chair Plunkett and myself because we were doing our jobs. Veteran Councilmember Plunkett wanted us to file a defamation lawsuit which in hindsight we should have done, since I became a target of “asking the tough questions” which is my fiduciary responsibility. Also the question “Are you a CPA?” that Haakenson asked when I was a citizen followed me for years. For the record, I did not want to be a CPA and my extensive knowledge in regulatory auditing was more interesting. Listen to my website audio “Soul of a Scandal” as in addition to charging Mr. Charlie Keating for multiple crimes in the largest savings and loan scandal their audit firm was also charged. Also, the “Are you a CPA” came up again when Finance Director Neumeier removed the $5.0 million from the City’s receivables and the offsetting PFD/ECA’s payables which occurred without Council knowledge or approval. That “story” is also found here since it was covered up and not made public other than Neumeier resigning.
All the audits under the Nelson administration are bad and show mismanagement of federal funds (CARES or ARPA) because of very bad internal control procedures. While a City Council member asked about the $4.8 million change (see source documents below) and the Auditors provided a business as usual comment, if the scope of the audit did not require a reconciliation of the beginning fund balances and ending fund balances, there would have been no testing. The bad internal control measures was all they could say.
It’s obvious the Regional Fire Authority (RFA) is trying to stall any reimbursement of the GEMT (Ground Emergency Management Transport) to the City of Edmonds now that the RFA has passed. Citizen Jim O. has done a deep dive and source documents are included in this website. The City Council has yet to address this issue in a public forum as to what is the City’s stance on this issue. If it is potential litigation, an executive session should have taken place and the City Council should announce their plans in open session. Mr. O estimates the amount owed the City is well over $10 million.
When Mayor Earling hired Roger Neumeier the Administration removed a receivable of about $5 million that was on the City’s books with the offset being a payable on the Public Facilities District (DBA ECA)’s books (a component unit of the City). None of this went through the Finance Committee (which CM Petso had taken me off of ) or Council as a whole. I found it by reading the audit report and seeing that the net worth of the PFD had doubled in size, so I questioned the Administration and was ignored. So, I sent an entire packet to the Governmental Accounting Standards Board (GASB) experts explaining everything. During their review process we had many behind closed door meetings with less than three members of Council, the Auditors, Mayor and attorney and Finance Director and PFD’s Board, Finance Director and attorney. Of course, I was challenged even by the Auditors and the GASB pronouncement they quoted did not match the reason for removal as the City issued the bonds, not the PFD. Finally, I was contacted by the GASB experts and I was right and so I prepared a resolution for vote of no confidence against Neumeier. Unfortunately, Earling convinced Council President Petso not to put on the agenda as the change had occurred and the Audit report restated and republished.
Why did the Auditor’s sign off on the transaction was because Neumeier did not share with them the (former Finance Director Hunstock’s) repayment schedule that also had Joe MCIalwain, the ECA/PFD representative. After GASB called Neumeier and told them of their ruling, he did apologize to me or the phone but not publicly. All the financials for the City and the PFD had to be restated and the Financial (Audit) Reports were re-filed. Neumeier resigned after the budget process and blamed Council for his leaving and publically made it known about my insistence for facts. Here is the draft sent to GASB explaining the issue.
When the City Council had many financial minded folks (Dave Teitzel, Tom Mesaros and myself), CM Mesaros recommended compiling this snapshot report for Council and Finance Director Scott James obliged. Under Council President Tibbott in 2023, this report was allowed to be discontinued since Finance Director Turley had changed the numbers without footnote: please see article and source document in the “Where is the missing $3.5 million” as the ending fund balance and beginning fund balance did not reconcile and was now off over $4 million. Mayor Rosen was asked to reinstate this report so the citizens could understand the decrease in Fund Balance but he has yet to comply. While I was on Council, I asked for this report to be completed repeatedly but was ignored.
At the approval of Council President Vivian Olson, the Finance Director stopped providing the changes in fund balance which was suddenly out of balance. This $4.0 million was never explained nor footnoted and the City Council should hold pass administration and Mayor Rosen accountable. Misdemeanor charges should be pursued. The 2023 Audit did not include the scope which would be to reconcile the fund balances changes and when it’s not in their scope, they opine internal controls are not sufficient.
Open Letter to the Edmonds School District: Public Comment 7/8/25
https://www.edmondsbeacon.com/stories/open-letter-to-the-edmonds-school-district,133015?
Perrinville Creek: A sad case of politics and wasted taxpayer money
Note: the Stream Team stopped preparing Reports due to COVID and then did no further reports because Mike Nelson (Mayor) said he didn’t care about whatever we had to report, and cut the students Oct 2020 presentation to Council off before students had chance to finish.
Does the City need to bankrupt citizens with high taxes (page 6)
Legal Advice or Political, Environmental or Developmental Fodder
Lots of these documents were received via a public records request as settlements only move through the consent agenda. The many issues relating to the Executive Session are noted and the City has continued to pay for the errors.
The full Beacon is downloaded since the Beacon asked the City to provide a response and both are found on page six. Also rebuttals provided to me by citizens also have been included as the City’s answers could have been more specific about date and time.
The Hummingbird and Wade James transaction was something that should have gone through the executive session process involving Council with the “pre-decision” process. It seems Tatum/Rosen used the same tactic that the City did with the “Landmark purchase” (Burlingame property) contract fiasco that had no attorney representation.