The promised forensic audit report (now being called a forensic assessment for some reason) of City of DeKalb’s tax increment financing funds has been released by the DeKalb County State’s Attorney’s Office.
The report details miscalculations, missing documents, and other failures of due diligence occurring across the 10-year period examined.
Much of the fireworks over TIF began when members of the Joint Review Board that oversees it, particularly our school district, began questioning the size of transfers from TIF funds to the General Fund, the city’s chief operating fund, to cover administrative costs.
The report includes the document below, which accounts for 2018’s originally intended $791,744 transfer amount. You can decide for yourself whether all these people were “administering” TIF. DeKalb ultimately settled on $160,000 in transfers for 2018, and for this year has budgeted $15,000, so apparently even the city no longer thinks so.
The good news is the transfers began shrinking in the sunshine. The bad news is the assessment tells you just about everything you need to know about how DeKalb operates, always. If you look at the dates of missing invoices and proofs of service, for example, you see that it’s not just one or two years where missing documents are a problem; it’s spread across the entire 10-year scope of the assessment. It’s true today, too — I can confirm from my “look behind” information requests that documentation related to licensing comes up missing with some regularity.
What the TIF transfers did were to enable the city to retain more staff than it otherwise could have. In the fiscal 2008 budget the transfers came to $350,000 and the stated goal was to reduce them to zero by 2013. This didn’t happen because the Great Recession happened. In 2010, the city was in a hole and the TIF transfers topped $1 million. In target year 2013, transfers helped fuel a nascent hiring spree that ended with another hole in 2018.
The transfers are virtually down to nothing now, but there’s still a chart similar to the TIF transfer chart and it’s also for deciding how much of employees’ wages should come from another city fund — the Water Fund. The assistant city manager recently confirmed for me that about $370,000 is charged to Water to pay employees who work in other city departments/divisions/offices.