Homewood City Council strengthens financial oversight after fraud scandal involving former finance director

During the Homewood City Council meeting on January 13, 2025, significant discussions centered around the recent state auditor's report, which highlighted critical issues within the city's financial management. The report, released the previous Friday, detailed findings related to the misuse of city credit cards and a fraudulent misappropriation of funds by former finance director Robert Burgett.

The city was proactive in addressing these issues, having been the first to identify suspicious financial activities after Burgett's retirement in March 2024. Following the discovery, the city promptly reported the findings to local, state, and federal authorities, leading to an ongoing FBI investigation. Burgett has since pleaded guilty to three federal charges of wire fraud, with insurance covering $500,000 of the over $947,000 he illegally transferred to his personal accounts. The city is actively working to recover the remaining funds.

In response to the auditor's findings, the city council initiated a review of credit card usage by city employees in October 2023, uncovering potential irregularities. As a result, substantial reimbursements have already been made, and the council is investigating an outstanding financial obligation of approximately $1,300 by an employee. Additionally, Burgett is linked to nearly $10,000 in disputed credit card charges, which are being referred to the Alabama Attorney General for collection.

To enhance financial oversight, the council voted in November 2023 to implement stricter policies regarding city credit cards. These measures include limiting the number of cards in circulation, restricting usage to pre-authorized city expenditures, and instituting monthly audits of card purchases. Violations of these policies may result in disciplinary actions and recovery of funds through payroll deductions.

The meeting also addressed the upcoming transition to a new city management structure, with voters approving the creation of a city manager position to oversee executive duties starting in November 2025. The city is currently searching for an interim manager to begin in March, aiming to bring professional oversight and improved budget management to the city's operations.

Overall, the discussions during the meeting underscored the city's commitment to enhancing financial accountability and transparency in the wake of recent challenges. The council's actions reflect a broader effort to ensure taxpayer dollars are managed responsibly and to restore public trust in the city's financial practices.