Costly Mistakes in Sunnyside

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By Melissa Wagner

Story Published: Jul 22, 2010 at 12:16 PM PDT

SUNNYSIDE -- KIMA has learned the new Sunnyside finance director recently discovered an accounting error. And it's costing the city more than $12,000. This isn't the first time they've had money problems. You'll remember Sunnyside laid off 9 people in the fall because of a supposed budget shortfall. But later realized they had an extra $1.5 million in reserves. So what's really going on with the city's finances? And should you be worried?

"I'm sure in some way it causes the citizens to have some concern," said Byron Olsen, Sunnyside Finance Director.

The IRS found a mistake the city made in a medicare filing. That cost Sunnyside $12,000 in fines. Another mistake, over-paying for L&I coverage, somewhere between $5,000 and $10,000 too much. The city chose to let the state hold onto that money as a credit toward future bills.

Olsen has been on the job just six months. And it's proving to be quite a challenge.

KIMA asked, "Are you surprised at all the things you've found?"

Olsen answered, "Probably the total breadth of what we found is a little surprising. That organizations have mistakes in filing with the state or government is not surprising."

Keep in mind, these mistakes were made when the previous city manager, Eric Swansen was in charge. The city's finance director also quit when Swansen was fired.

The mistakes have been found, but at this point no one is willing to point fingers at the old administration to find out exactly where it went wrong and when.

Olsen said, "We haven't been focused on how the city got into that particular position. What we're focused on now is what do we do to get out of that position and make sure that doesn't happen again."

But the damage may already be done.

"I believe in honesty in government," said Phil Davis, employed in Sunnyside.

And if Sunnyside folks don't think they're getting that honesty, their overall confidence in city leaders may be shattered.

Carol Kramer, longtime Sunnyside resident said, "My confidence is a little lower and I think they need to get someone else in there who knows how to budget the money better."

"It takes a long time to rebuild the confidence of folks once you've lost that. So that's what we're trying to do now," said Olsen.

But it's Olsen who must now rebuild that confidence by counting every penny, not once but twice. Sunnnyside will hold a public meeting Thursday to introduce the candidates for a new city manager.
Byron Olsen is one of those candidates. He's hoping to not only turn around the city's budget, but improve all departments, to better work for the community.

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