05/31/2017
Missouri State Auditor Nicole Galloway has released an audit of the City of Wellston, located in St. Louis County. The audit was requested by citizens and uncovered serious mismanagement of taxpayer resources and a lack of accountability across city government operations. Financial records are both incomplete and inaccurate, making it difficult for councilmembers to adequately monitor the city's finances, and for auditors to determine the true extent of the city's financial problems.
"The Wellston city government is failing its citizens," Auditor Galloway said. "The city's financial condition has drastically declined, and a series of missteps, miscalculations and inappropriate activities continue to lead the city down a path of further financial ruin."
The city's financial troubles have been compounded by inappropriate activities leading to lawsuits. The city was ordered to pay almost $80,000 in settlement costs after a number of incidents, including an assault on a citizen by a councilmember, a class action suit over illegal fees charged by the municipal court, and violations of the Missouri Sunshine Law.
The city has serious cash flow problems and hasn't been able to keep up with payments for regular operations. It also doesn’t prepare budgets for city funds, doesn't prepare or publish legally required financial statements, and doesn’t file annual financial reports. This culminates in an environment of uncertainty and misinformation about the true extent of the city's budget woes.
Records show the city doesn't properly restrict or monitor its fuel use. The mayor fuels his personal vehicles at St. Louis County's gas pumps and bills the gas to the city. In one year he purchased nearly 1,600 gallons of gas, costing taxpayers $2,800. This averages out to an estimated 31,000 miles driven in a city that spans less than one square mile.
The report describes a potentially improper payout of $5,000 to a city employee. The payment was classified as unused vacation hours but there was no documentation to indicate how the amount was determined or why it didn't match leave balances listed in the employee's records.
Auditor Galloway also raised concerns with the city's adherence to the Sunshine Law. The city doesn't respond to Sunshine Law requests within the timeframe required by law. In 2015 a lawsuit resulted in the city being ordered to pay $6,300 for failing to turn over police records as part of a Sunshine Law request. In addition, a councilmember was awarded a judgment of approximately $32,000 in April 2017 resulting from the city's failure to respond to multiple Sunshine Law requests. The city also doesn’t follow the Sunshine Law when closing meetings to the public, and meeting minutes and agendas don't meet legal requirements.
The city received an overall performance rating of poor, which means the State Auditor will return later this year for a follow up review. An audit of the Wellston Municipal Court was released last fall. The court audit also received a poor performance rating and the follow up review will be released this summer.
A complete copy of the audit report for the city of Wellston is online here.
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