04/07/2025 - JEFFERSON CITY, Mo.
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.
