The park shelter that has been the center of controversy in Kasson for the past month was returned to the city only after the Minnesota State Auditor’s Office inquired about it.

City administrator Theresa Coleman confirmed that she received an inquiry about “suspected fraud” related to the shelter from the auditor’s office on June 10. At the time, the state official also notified her that she must report any misuse of city property.

“The concern was related to me that a council member took possession of city property,” Coleman said, noting that the state made it clear to her elected officials shall not take possession of city property. “The message to me was that I have a statutory responsibility to report that,” she added.

After she was questioned by the state about the park shelter, Coleman contacted the Kasson City Attorney reminding them of her statutory obligations and in effect setting the stage for the property to end up back into the city’s hands. Four days later the shelter was returned to the city by council member Coy Borgstrom, who took it from the park, Coleman said. This took place at the direction of the city attorney.

“Whatever situation I was put in was mitigated shortly thereafter,” she said. “When the state auditor stepped in, it was the appropriate time to get it resolved.”

The shelter is currently on a trailer at the city’s public works facility waiting for demolition, according to Coleman. She said the shelter will be dismantled and put into dumpsters.

Coleman agreed that the park shelter issue was partially taken care of, at least the return of the property, only after intervention from the state. The question still lingers about the city’s procedural process in the matter.

The removal of the shelter was not approved by the full council, but rather at the direction of Mayor Steve Johnson. Photographs surfaced after the removal showing the shelter on the council member’s property, Coleman said.

Coleman said removing property in the manner it was would typically constitute theft. However, in this case, the city attorney issued a ruling after the fact deeming the property has no value. Theft can only occur if there is some value to the item.

The city administrator said Johnson and Borgstrom have been coached about their behavior in this matter. “The city attorney has spoken to the council member and mayor about what transpired,” Coleman said. “Hopefully the council members involved will be more careful (in the future).”

Minnesota State Auditor Rebecca Otto told the DCI she could not confirm or deny any involvement with the Kasson case. She also declined to comment on any specifics of the case, but provided an overview of her office.

Otto said one of the major reasons she can’t disclose anything is that she needs to protect the integrity of her office and whatever investigation or review they are handling.

The auditor’s office, she said, is the authority for the public to report any concerns if they have any evidence of wrongdoing in government. “We want government to be transparent and accountable,” Otto said.

There are a number of ways issues are resolved through the auditor’s office. Some of them include a simple phone call to the parties involved, a review letter outlining their findings or an investigative report may be issued. In extreme cases, criminal charges may be warranted and would be referred to the appropriate county attorney, she said.

Otto provided no timetable for how long before a finding is issued once a review is started by her office. “We try to get them as timely as possible,” she said.

“We are here for good government in the state of Minnesota,” Otto said. “We are here for the public interest,” she added.