Law enforcement officials this week continue to investigate allegations of misappropriations of funds at the City of Hedley involving former city secretary Kim Davis Gossman.
The Hedley City Council met in closed session for about ten minutes last Thursday, January 19, during their regular meeting before accepting Gossman’s resignation and announcing that an investigation was underway. The council then voted unanimously not to press charges against Gossman, but Mayor Carrie Butler said following the meeting that the council’s vote would have no impact on whether law enforcement might file charges.
As the investigation moved forward, Butler contacted the Enterprise Monday morning and said the city will in fact be pressing charges and also confirmed that the investigation was also focusing not just on Gossman’s role at City Hall but also at the Hedley Community Development Corporation, the local housing authority.
Sheriff Butch Blackburn could not comment on the case Monday other than to confirm that an investigation is underway and that he expects formal charges to be filed soon. He also confirmed Tuesday that his office is seeking the assistance of the Texas Rangers in investigating the case.
Following the council’s meeting last Thursday night, Butler told the Enterprise at that time that the investigation was focused on payroll funds and contract labor funds and said that vacation pay was specifically being looked at.
According to Butler, the city’s auditor, Foster & Lambert, had discovered “discrepancies” in Gossman’s salary while conducting the city’s fiscal year 2022 audit, covering July 2021 through June 2022. Auditor Denise Foster notified the mayor of the discrepancies on Monday, January 9.
The council met in an emergency session on January 10; and according to the uncertified minutes of that meeting presented on January 19, no action was taken in open session. The council did meet in closed session for about 40 minutes to consult with counsel on legal matters, the minutes say.
Butler told the Enterprise last Thursday night that Gossman had returned money to the city and, at the time the council voted not to press charges, she said no money was missing from the city. Butler also said at that time that she herself was conducting an internal audit of the city.
At press time Tuesday, the Enterprise had not been able to connect with officials over the Hedley Community Development Corporation for comment or to confirm if Gossman was still employed by that agency.
The revelations about the investigations came at the end of Hedley’s city meeting which began with three citizens speaking on several issues early in the agenda. Residents Nikki Glover, Carol Glover, and Christan Coyle spoke on a wide range of issues involving water bills, water meter reading, water rates, street maintenance, and other issues. Several residents spoke negatively of Gossman, who was not present at the meeting. When the council initially voted not to press charges, the standing room only crowd erupted with cries of protest and anger from several residents.
Also in Thursday’s meeting, the council approved removing Gossman as a signatory on city accounts and named Butler and Mayor Pro-Tem Trisha Chambless as the two signatures needed for the first and second quarters of this year. Two other council members will be named signatories for the third and fourth quarters.
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