Auditor Fitzpatrick fights for transparency for the people of Arnold while city officials pursue a frivolous lawsuit to impede the ongoing audit of the city and two TDDs

Missouri State Auditor Scott Fitzpatrick wants the people of Arnold to know he will fight back against the efforts of city officials to deny access to documents relevant to the administration of two Transportation Development Districts (TDDs) located in the city. In response to a lawsuit filed by the city, Fitzpatrick has issued a third subpoena to obtain unredacted documents officials have been unwilling to provide as part of an audit of the City of Arnold and the two TDDs overseen by city officials.

 

"The people of Arnold should be outraged by the efforts of city officials to prevent our auditors from accessing records detailing how millions of taxpayer dollars have been used by these TDDs. The fact the city is wasting taxpayer money on this type of baseless litigation is absolutely absurd. Missouri's constitution, laws, and even well-established caselaw make it clear that city officials can't hide behind redactions in an attempt to obfuscate the truth. This behavior is indicative of an out-of-touch bureaucracy that has something to hide from the people," said Auditor Fitzpatrick.

 

The audit of the City of Arnold, as well as the Arnold Triangle TDD and the Arnold Retail Corridor (ARC) TDD, began November 6 after the State Auditor's Office received multiple credible whistleblower complaints. During audit work, city officials have repeatedly failed to fully cooperate and have regularly dragged their feet on providing requested documents. The unnecessary delays caused by the city prompted Auditor Fitzpatrick to issue two subpoenas on March 10th, one to the Mayor of the City of Arnold, and one to the ARC TDD, which resulted in city and ARC TDD officials quickly responding to requests made by audit staff. However, the city's decision to heavily redact closed meeting minutes relevant to the audit work, and the insistence by the State Auditor's Office that the city provide unredacted copies, resulted in the city filing a lawsuit that challenges the authority of Auditor Fitzpatrick to obtain relevant documents.

                                                                                

In an effort to expedite the legal proceedings, Auditor Fitzpatrick issued a new subpoena to obtain the unredacted documents that were previously requested. Once formally served with the City's frivolous lawsuit, the Auditor will vigorously defend his authority to obtain the requested records. If the City fails to comply with the newly-issued subpoena by May 1, the Auditor will file a counterclaim against the City to assert his legal authority and to protect the integrity of the audit process.

 

"Given that city officials have demonstrated they have little to no understanding of the law pertaining to the administration of the TDDs they created, it comes as no surprise they have an equal lack of understanding of the legal authority my office has to conduct audits and obtain documents relevant to those audits. Their lawsuit is a futile effort to delay our work and prevent the public from having access to information about how their tax dollars have been spent. After we decisively win this legal challenge, I will expect full compliance from the city so we can complete our audit and shine the light of transparency on the actions of the city and their TDDs."

 

The ongoing audit is examining a variety of issues related to the city and the two TDDs including concerns about the ARC TDD potentially using TDD funds to purchase real estate outside the boundaries of the district and using ARC TDD funds to pay off the debts of the City. Auditors are also looking at the potential conflicts created by high level city officials also serving as TDD officers, and examining the general administration of the TDDs by the City of Arnold.