DeKalb Investigating “Financial Irregularity”

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Statement Regarding Potential Misappropriation of City Funds

Last week, while performing work on the City of DeKalb’s 2019 budget, a senior-level City
employee discovered a financial irregularity involving potentially misappropriated funds in
last year’s budget.

As a result of this discovery, which involved the possible misdirection of $250,000 from
one fund to another in order to plug a deficit, the City has taken the following steps:

  • It has launched an internal investigation to determine the facts related to this
  • It has conducted a review and confirmed that there are no other funds that are
    outside of the City’s normal reporting and audit procedures which could be subject
    to use of this nature.
  • Last Monday, the City placed Interim City Manager, Molly Talkington, on paid
    administrative leave pending the outcome of these investigations. The City has
    not concluded whether there was or was not any misconduct but took this measure
    in an abundance of caution. In the absence of Ms. Talkington, Interim Assistant
    City Manager, Raymond Munch, will fulfill the duties of City Manager in an acting
    capacity, pursuant to City Code, until such time that formal action is taken by the
    City Council.

If the City’s internal investigation reveals that the misappropriation of funds was in violation of our policies and standards, the City will move to hold all responsible parties strictly accountable.

It is important to point out to taxpayers that at this stage, this alleged wrongdoing has not resulted in any missing funds. Every dollar involved in this possible misappropriation of funds has been accounted for; all money was spent for official City business; and funds will be made whole in the coming days.

As stewards for DeKalb’s overall financial health, it is our expectation that those entrusted
to oversee the use of taxpayer dollars – especially those in leadership positions – do so responsibly, ethically and in strict adherence to established procedures and the law.
When that does not occur, it is our obligation to ensure that responsible parties are held accountable.

Due to the sensitive nature of the City’s internal investigation, the City is not able at this time to provide further detail. Going forward, however, it is the City’s commitment to its residents to manage this situation forthrightly, transparently and in a timely manner.

Inquiries pertaining to this matter should be directed to Dave Bayless of Bayless
Communications at (312) 533-0059 or

[Note: The last paragraph of this press release has been deleted from the City of DeKalb website. Do not contact Dave Bayless for information about this investigation.]

Raymond Munch
Interim Assistant City Manager


  1. Sadly, many citizens were lied to by mayor Smith and council members when asked for the reason why the Finance Advisory committee / city council meeting was cancelled/. One alderman told me the reason was “An error was.found in the budget that needs to be corrected and new options identified to cover the resulting shortfall”…no mention of misappropriation.

  2. It should be noted, Mr. Bayless is unwilling to answer any questions. In a short, but brief conversation with me tonight, he indicated he is not willing to speak to the public. He did indicate his services were retained on Monday by the city of Dekalb. And, that if you do ask him any sort of question, he will direct you back to the city of Dekalb. So, telling people to call him well not result in any questions being answered. This city is desperately trying to cover up this matter.

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