Walton released its final report of a months-long investigation into former Mayor Gabe Brown, and it reveals repeated misuse of city money and property.
The report included seven key findings, according to special counsel Bryce Rhoades at a City Council meeting on Tuesday evening. The findings include misuse of a city-owned vehicle and gas card, using a city plow for personal gain, and numerous instances of inappropriately authorizing payments to contractors, totaling hundreds of thousands of dollars.
The complete report is public record and can be requested through the city website. It includes background information on the investigation, a summary of charges against Brown, and multiple exhibits of evidence for his alleged misconduct, including various invoices and receipts of payment to contractors.
Charges involving contractors relate to work completed on Owens Park Lake. According to the report, on Dec. 9, 2021, Walton entered a contract with John Salley of Kentucky Dredging to complete work on the lake, including dredging and resurfacing. The work would begin Dec. 31, 2021, and be completed May 31, 2022.
Under the contract, Kentucky Dredging was required to provide all materials, supplies, tools, equipment and labor. Walton would pay $107,000 upon completion, to come out of the city’s park fund.
However, while the contract period remained unextended, Kentucky Dredging’s work on the lake has continued past the completion date, as recently as November 2023.
Further, the company has charged Walton at least $300,935 during that time—over 181% more than the contract amount originally agreed upon. The additional charges include $21,000 for fuel, which was supposed to be part of the contract price, as well as two handwritten change orders for $36,360 and $63,000 that were paid without the approval of the city council, and a further $94,575 in additional costs that were “completely unapproved.” Walton also paid Kentucky Dredging $1,000 prior to receiving an invoice for work completed in August 2023. Then, in November 2023, Walton issued a payment for $28,880 made by cashier check and paid for by the city’s general fund.
In Sept. 2023, Walton entered into a contract with another organization, Ryan Landcare, to perform work on the Owens Park Lake. Ryan Landcare has invoiced Walton a daily flat fee of $5,600 for work performed, as well as for various equipment rental, which currently totals at least $200,611.90. Walton has paid at least $166,580.90 of those charges so far.
According to the report, by entering into a contract with Ryan Lawncare in the first place, Walton violated a city policy on advertising for bids on contracts more than $40,000.
In April, city council approved an ordinance creating new procedures around entering into contracts. The policy now states that the city must advertise bids on contracts more than $20,000.
With the findings on misusing city money for entering into contracts, the report said that city council found Brown’s actions constitute willful neglect.
The report also found that Brown violated several other city policies by misusing city property—a city-owned Ford Escape and gas card, as well as a city-snow plow.
From March 13 to 15, Brown used the city vehicle to make a trip to Bowling Green, Kentucky, for a Kentucky League of Cities conference. Although he returned to Walton after the conference, the city vehicle was not returned until March 25, when Brown abandoned the vehicle in front of the residence of council member Terri Courtney.
Although Brown had returned to Walton, numerous gasoline purchases were made on the city gas card in his possession, including one made March 29, after the city vehicle had been returned and was being serviced at Tire Discounters.
Council believes that the gas card was used for a personal gasoline purchase or allowed to be used to do so.
Lastly, the report states that in January, Brown used a city-owned plow truck to clear the parking lot of a private business outside of Walton. Brown was paid $20 and additional goods for the work. It is unclear what the additional goods are.
During its investigation into Brown, city council hired consultant Elishia Chamberlain to conduct a forensic audit of the last fiscal year and make recommendations to the city on what steps they should take to ensure such a situation doesn’t repeat itself in the future.
The report includes a list of Chamberlain’s administrative findings and suggestions for improving city policies and processes. Included in her suggestions is creating a finance committee, clarifying the process for authorizing purchases and payments, creating a purchase order system, adopting a standard practice for issuing payments, reviewing internal policies for use of credit cards, and hiring a part-time city administrator.
City council created a new purchase order system on May 10, but it is unclear what other recommendations Walton has already adopted or plans to adopt
LINK nky has reached out to special counsel Bryce Rhoades for more information.