The City Council of Yukon, Oklahoma, convened on January 14, 2025, to address pressing issues surrounding the management of public funds and governance within the city. A significant focus of the meeting was an audit report presented by Michael Breon, a partner at North American Forensic Accounting, which highlighted longstanding concerns regarding the use of Public Safety Enhancement Tax (PSET) funds and overall governance practices.

Breon emphasized that the PSET funds, intended for competitive wages and benefits for city employees, may not have been utilized appropriately. He raised questions about whether these funds were being diverted to the general fund to cover payroll expenses, which could violate the ordinance governing their use. Breon called for a thorough audit of past fund allocations to ensure transparency and accountability.

The audit also revealed anomalies in the budgeting process, particularly in the years 2022 and 2023, where some budget amendments lacked proper documentation and signatures. Breon suggested that improved communication and controls over budget amendments are necessary to enhance the city's financial management practices.

Council members expressed concern over the findings, with one councilman noting that the issues identified in the audit represent only "the tip of the iceberg." Questions arose regarding the authorization of investigations into allegations of misconduct and the effectiveness of past leadership in addressing these issues. Breon characterized the governance environment in Yukon as one of the worst he has encountered, citing a culture of fear that discouraged reporting of misconduct.

The meeting also touched on the relationship between the city and the Yukon Community Support Foundation (YCSF), with assurances that recent city events, such as "Christmas in the Park," are now funded directly through city accounts rather than through YCSF. This shift aims to increase transparency regarding the use of public funds.

In conclusion, the council acknowledged the need for significant changes in leadership and governance to foster a healthier organizational culture. The discussions underscored the importance of accountability and transparency in city operations, with a commitment to addressing the issues raised in the audit moving forward.