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. >>> THERE ARE MORE THAN TWO
THOUSAND SEPARATE GOVERNMENTS
IN WASHINGTON STATE.
EACH ONE REQUIRED TO BE AUDITED
BY THE STATE.
>> EACH YEAR MORE THAN A
HUNDRED OF THOSE GOVERNMENTS
FAIL TO COOPERATE WITH THE
AUDITOR.
AUDITOR.
AUDITOR. CHRIS JOINS US WITH THE SERIES
MONEY DOWN THE DRAIN.
WE'RE TALKING ABOUT SOME THAT
HAVE NOT COMPLIED IN DECADE
SUBWAY NIGHTLY SPORTS.
>> Reporter: YES AND WITH NO
APPARENT CONSEQUENCES.
APPARENT CONSEQUENCES. WE'RE EXPOSING SOME TONIGHT.
THEY'RE COLLECTING YOUR TAXES
BUT NO ONE KNOW WHAT IS THEY'RE
DOING WITH YOUR MONEY.
>> Reporter: TAX TIME IN PIERCE
COUNTY.
COUNTY.
COUNTY. PROPERTY TAX BILLS FOR ABOUT A
THOUSAND RESIDENTS INCLUDE THIS
LINE ITEM TAX FOR A DRAINAGE
DISTRICT.
DISTRICT.
DISTRICT. ON SMITH ROAD, FOR EXAMPLE,
THIS HOMEOWNER WAS BILLED
$35.02 THIS YEAR, THIS ONE
$25.62.
$25.62.
$25.62. >> YOU PAID 28.19 DOLLARS AND
YOU DON'T KNOW WHERE THE MONEY
IS GOING.
IS GOING.
IS GOING. >> NOT AT ALL.
THANK YOU FOR INTRODUCING THIS
TO ME.
TO ME.
TO ME. >>
TO ME. >> Reporter: IT'S A SMALL
ENOUGH TAX THAT RESIDENTS WOULD
BE NOTICE.
BE NOTICE. OWNERS OF LARGER COMMERCIAL OR
INDUSTRIAL PROPERTINESS
INDUSTRIAL PROPERTINESS WOULDN'T KNOW.
WOULDN'T KNOW. ONE OF THE MOST VALUABLE IS
FIFE SCHOOL DISTRICT AND THEY
OWE $3137 IN DRAINAGE TAXES
THIS YEAR.
THIS YEAR. >> I'D LIKE TO KNOW WHERE IT'S
GOING.
GOING.
GOING. >>
GOING. >> Reporter: THAT QUESTION HAS
SWIRLED AROUND FOR 16 YEARS.
THAT'S THE LAST TIME THE THREE
ELECTED COMMISSIONERS WHO
MANAGE THIS DISTRICT OPENED
THEIR BOOKS FOR AN AUDIT.
DISTRICT 23 IS ONE OF TEN THAT
COLLECTS TAXES OR FEES BUT HAVE
REFUSED FINANCIAL REVIEW FOR 15
YEARS OR MORE BY THE OFFICE OF
THE AUDITOR.
THE AUDITOR. >> WE CAN USE THE ATTORNEY
GENERAL'S OFFICE IF WE THINK
THERE IS CRIME.
WE CAN ONLY JUST RAISE THE
ISSUE UP AND LET THE
LEGISLATIVE BODY TAKE CARE OF
THE PROBLEM.
THE PROBLEM. >> Reporter: SO NO ONE TAKES
ACTION AS THE DISTRICT 23
COLLECTS ABOUT $180,000 IN
TAXES EACH YEAR.
THE TAX BILLS KEEP COMING EVEN
THOUGH MUCH OF THE 70-YEAR-OLD
OPEN TRENCH SYSTEM IS COVERED
UP AND TRANSFER TO THE CITY OF
FIFE STORM DRAIN DISTRICT.
WE HAVE THESE COUNTY RECORDS
SHOWING THAT THIS DISTRICT HAS
MORE THAN $1.3 MILLION IN CASH
RESERVES.
RESERVES.
RESERVES. >> THAT'S A LOT OF MONEY.
WHAT ARE THEY DOING WITH IT.
>> Reporter: WHAT ARE YOU
SAYING TO THE TAXPAYERS ABOUT
HOW THE MONEY IS BEING SPENT.
>> WE'RE UTILIZING THEIR MONEY
THE BEST WAY WE CAN.
>> Reporter: MAX IS ONE OF THE
LONGEST SERVING COMMISSIONERS.
HE'S BEEN A COMMISSIONER SINCE
1974 AND MAINTAINS AN ARCHIVES.
THE STATE AUDITOR SAYS YOUR
DISTRICT HAS NOT RESPONDED.
>> THEY BETTER CHECK WITH THE
COUNTY.
COUNTY.
COUNTY. THEY HAVE THE AUTHORITY OVER
US.
US.
US. THEY
US. THEY VERIFY AND THEY'RE THE ONE
THAT IS WRITE THE CHECK.
>> Reporter: HE SAYS TAXPAYERS
CAN REST ASSURED BECAUSE
THEY'RE MONITORING THE
DISTRICT'S EXPENSES.
DISTRICT'S EXPENSES. NOT SO SAYS THE COUNTED TI'S
ASSESSORS.
ASSESSORS. THEY SAY THEIR ROLE IS TO TAX
AND KEEP BOOKINGS BUT NOT
QUESTION EXPENSES.
QUESTION EXPENSES. >> AS LONG AS THE PROCEDURES
ARE BEING FOLLOWED THE USE OF
THE FUNDS ARE NOT BEING
AUDITED.
AUDITED.
AUDITED. >> Reporter: RETIRED BUS DRIVER
DAVE IS THE DISTRICT 23 ELECTED
COMMISSIONER WHO SUBMITS THE
MOST BILLS FOR PAYMENT.
STATE AUDITOR'S RECORDS SAY
THEY'VE BEEN DELIVERED TO HIS
HOUSE HERE IN FIFE.
LIKE THE AUDITOR'S OFFICE, WE
GOT NO RESPONSE AFTER REPEATED
CALLS AND MESSAGES LEFT FOR
HIM.
HIM.
HIM. >>
HIM. >> HE SAID FOR ME NOT TO LET
YOU GUYS TALK TO ME BECAUSE IT
WAS BIG FAIRS.
>> Reporter: WE EASILY SPOTTED
ONE RED FLAG HE SUBMITTED TO
THE COUNTY LAST YEAR.
HE BILLS AROUND $367 FOR A
MONTHLY MEETING EVEN THOUGH
STATE LAW GRANTS COMMISSIONERS
$90 PER MEETING.
IT MAY BE A SMALL THING BUT WHO
KNOWS WHAT ELSE AN AUDITOR
MIGHT UNCOVER.
MIGHT UNCOVER. >> Reporter: EXPENSES INCLUDES
THIS PUMP HOUSE TO HELP THE
WATER FLOW INTO PEUGEOT
SOUNDS, MAINTENANCE AND GRASS
CUTTING BILLS.
CUTTING BILLS. MOST OF 86,000 SPENT LAST YEAR
PAID OUT ON DAVE'S SIGNATURE
ALONE.
ALONE.
ALONE. >>
ALONE. >> Reporter: WHEN WERE YOU LAST
ON THE BALLOT?
1980s MAYBE.
1980s MAYBE. >> MAYBE IT'S BEEN A LONG TIME.
>> Reporter: BECAUSE OF AN
OBSCURE STATE LAW, THE
COMMISSIONERS HAVE NOT BEEN
REQUIRED TO HOLD AN ELECTION
IN DECADES AND NO REAL
AWARENESS THAT THIS AGENCY
EXIST.
EXIST.
EXIST. IT
EXIST. IT ALL MAKINGS FOR MURKY WATERS
IN DISTRICT 23.
>> SO THERE IS NO HANKY PANKY
IS GOING AROUND.
>> Reporter: I'D LIKE TO KNOW
WHERE THEY'RE SPENDING THE
MONEY.
MONEY.
MONEY. >>
MONEY. >> Reporter: THE REFUSAL TO BE
AUDIT SUPERDOME A BIG DEAL.
THE LONG TIME COMMISSIONER OF
KING COUNTY DRAIN DAMAGE
DISTRICT NUMBER 5 IS FACING
POSSIBLE CRIMINAL CHARGES AND
FBI INVESTIGATION AFTER HE
SHOWED HOW HE FUNNELED $400,000
OF TAX MONEY INTO HIS OWN
ACCOUNT.
ACCOUNT.
ACCOUNT. KING COUNTY BASICALLY FIRED ALL
OF THE DRAINAGE COMMISSIONER IN
THE SOUTH COUNTY AND APPOINTED
NEW ONES.
NEW ONES.
NEW ONES. WE EXPECT THE STATE LAWMAKERS
WILL MAKE CHANGES AND LOOK AT
PROVISIONS TO THE SPECIAL
PURPOSE DISTRICTS WHEN THEY
MEET IN SESSION NEXT YEAR.
>> THERE IS SO MUCH GOING ON IN
THAT STORY.
THAT STORY. THERE SEEMS TO BE THAT
SEPARATION OF POWER BETWEEN THE
AUDITOR AND THE LEGISLATURE.
THE AUDITOR DOESN'T SEEM TO
HAVE ENOUGH POWER TO GO AFTER
IT.
IT.
IT. ARE
IT. ARE THEY TALKING ABOUT GIVING
THEM MORE TEETH?
>> Reporter: YES.
ONE OF THE THINGS RUBEN
CARLISLE WILL PROPOSE IS
CUTTING OFF FUNDING FOR THOSE
GOVERNMENTS THAT DON'T OPEN
THEIR BOOKS IF FOR OUGHT TORR.