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NEWS
An Olney re truck at the scene of a BNSF train derailment in 2014. BEACON FILE PHOTO
Olney Fire District Investigated for Misuse of Money Small re district spent $167,000 last scal year, raising concern among taxpayers
BY TRISTAN SCOTT OF THE BEACON
The Flathead County Sheri ’s O ce is investigating the possible embezzlement of tens of thousands of dollars within the Olney Rural Fire District after local res- idents raised concerns about dubious spending patterns.
Sheri Chuck Curry con rmed that the alleged misuse of funds was under investigation but could not provide com- ment on additional details, as the inves- tigation is ongoing.
Flathead County Commissioner Phil Mitchell said he led a written request for a criminal investigation after numerous residents contacted him about the mis- use of taxpayer money and the county took a closer look at the tiny re district.
When county o cials dug deeper into the record books, they discovered that tens of thousands of dollars had been spent at local auto parts businesses and grocery markets with little or no documentation.
In some cases, only the check stubs for the purchases were available, and o cials had to contact the merchants directly in order to compile the expense report.
“I had about ve di erent residents ask me to look into whether there has been a theft or misuse of funds by the re chief,” Mitchell said. “For quite some time peo- ple have been insinuating that something was afoul and I believe they’re right.”
resigned last week in light of the allega- tions, stepping down both from his posi- tion as the re district’s chief and as a member of the Board of Trustees that oversees the district — a position that Mitchell called a con ict of interest.
Morehead did not immediately return phone calls from the Beacon.
According to the board’s annual expense report, the Olney Fire Depart- ment, which serves a community of roughly 200 people, spent $168,221 during the scal year that ended June 30, running almost $25,000 over budget and spending $103,000 more than the most recent annual budget, which the board of trustees passed July 27. The new bud- get totals $63,560 and includes $27,000 in loan payments.
The new budget dramatically reduces spending on line items like fuel, and elim- inates budgeted spending for building maintenance.
The expense report shows that $44,679 was spent on building maintenance in
scal year 2016, while just $4,600 had been budgeted for the line item. Other major discrepancies appear on line items such as vehicle maintenance, which incurred $36,074 in spending when just $9,000 was budgeted. Actual spending for non-capital purchases and groceries was $10,573, when only $5,000 was bud- geted, and spending for fuel was $14,444 when $9,000 was budgeted.
“It seems to me like there has been a major misuse of funds,” Mitchell said. “We have cut their spending in half.”
At half of the previous year’s budget, residents in Olney can expect to see a dra- matic reduction in their taxes. Accord- ing to Sandy Carlson, the county’s chief nancial o cer, residents should see a 50 percent drop in their re taxes under the new budget.
“For the portion of taxes that go to the re district, they should be paying about half of what they were previously,” Carl- son said.
tscott@ atheadbeacon.com
Olney Rural Fire Chief Ken Morehead
“IT SEEMS TO ME LIKE THERE HAS BEEN A MAJOR MISUSE OF FUNDS, WE HAVE CUT THEIR SPENDING IN HALF.”
- PHIL MITCHELL
AUGUST 3, 2016 // FLATHEADBEACON.COM
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