City of Yukon officials could vote Tuesday to sue the city’s former manager, financial adviser and auditor.
The possible lawsuit against Grayson Bottom, RS Meacham CPAs and Advisors PLLC and/or FSW&B CPAs PLLC is listed on the city council’s agenda following an executive session with attorneys from McAfee and Taft, an Oklahoma City litigation firm.
The lawsuit would be related to actions and omissions in the performance of duties related to the city’s finances, budget, expenditure of funds, financial statements and the audit of the city’s financial statements.
Bottom resigned in December 2015 after officials began to questions the city’s financial condition.
A forensic audit of the city’s books, released in October, showed the city was on the verge of financial collapse at the time that Bottom resigned.
The audit indicated allegations of non-compliance with competitive bidding requirements, bid splitting and improper payments for some contracts, according to previously reported stories in the Yukon Review.
At the time of the audit’s presentation, Frank Crawford with Crawford and Associates, cited purchases made outside “the normal claims process and approval process for certain purchases” that could involve “individual conflict of interest in regards to a $2.4 million land purchase.”
The city’s finances were in such disarray, said Crawford, “When compared to other communities that we deal with in this type of work, this was the worst mess I’ve ever seen.”
The city’s financial struggles forced Yukon officials to layoff dozens of employees. The city’s emergency fund was nearly depleted.
Bottom was the city manager from 2011 until his resignation in 2015.
Bottom has been quoted as saying that his resignation was forced. He has sued the city of Yukon in federal court for wrongful termination. That case is pending.
The city’s finances have been stabilized and are on the right track, said current City Manager Jim Crosby. The council is expected to approve a $48 million budget that includes positive numbers in all of the city’s departments during Tuesday’s meeting.
Crosby said the city’s emergency fund now has about $2 million available. The audit showed that fund had been nearly wiped out because it was being used to pay expenses the city couldn’t otherwise cover.
Crosby said Thursday he could not discuss any possible litigation because the council had not made a decision. Any decision would come after the council visits in closed-door session with the attorneys.