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Oakdale Administrator Case Study
Case Study Critique: Oakdale Administrator
Tor R. Ellstrom
Liberty University Online
PADM501: Fundamentals of Public Administration (Section C01)
Dr. Dr. Peerbolte
March 17, 2024
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Oakdale Administrator Case Study
Abstract
The City of Oakdale has financially struggled in comparison to their neighbors for quite
some time. Previous mayors have attempted to close the developmental gap and see Oakdale’s
societal and financial fortunes improved. Oakdale elected Ernie Hoffnagel as mayor in an
attempt to improve the city’s standing. Hoffnagel in turn hired as city manager an individual with
a questionable ethical past. The actions of Hoffnagel and City Manager Angela Donny prompted
an investigation. This case study critique will examine the facts, decisions, solutions and attempt
to provide alternative perspectives on solutions.
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Oakdale Administrator Case Study
Facts
Although Oakdale’s history runs back to the nineteenth century, the study here will focus
on Oakdale from 1941, the time of its incorporation until 2004. (Cropf, Giancola, &
Loutzenhiser, 2012, p. 80). Their incorporation included the organizational structure that they
still adhered to at the time of the case study (Cropf, Giancola, & Loutzenhiser, 2012, p. 80). It is
typical for cities to struggle to maintain their budgets, entice development, and increase their tax
base.
At the time, the study noted that Oakdale had a population of 5,000 of whom a majority
were deemed “lower middle class, with a median income of $47,869 and a median house value
of $110,900.” (Cropf, Giancola, & Loutzenhiser, 2012, p. 80). The racial breakdown was 65%
white, 29% black, with the remaining 6% made up of “Native Americans and Hispanics.”
(Cropf, Giancola, & Loutzenhiser, 2012, p. 80). Due to this lower middle-class status, Oakdale
has the reputation of being run down. (Cropf, Giancola, & Loutzenhiser, 2012, p. 80). Self-image
or outside perception are not the only factor in setting the true value of a community. The city’s
status definitely comes with a stigma attached that can discourage investors and affect the morale
of citizens that precludes improvement to the city.
The operating budget of Oakdale in 2008 was $3.5 million, well behind the surrounding
municipalities in both “revenues and expenditures” (Cropf, Giancola, & Loutzenhiser, 2012, pp.
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Oakdale Administrator Case Study
80-81). In comparison, Silver Lake City had only a couple thousand more residents but those
residents had median incomes of “$109, 345” with “median house values” of almost $360,000.
(Cropf, Giancola, & Loutzenhiser, 2012, p. 81). Silverlake had much less racial diversity than
Oakdale with 89% white residents (Cropf, Giancola, & Loutzenhiser, 2012, p. 81). Consequently
due to more than double the income and triple the property value, Silver Lake City has an annual
budget just shy of $7 million, with incremental increases annually (Cropf, Giancola, &
Loutzenhiser, 2012, p. 81).
In order to change their city’s short comings, the citizens of Oakdale elected one of their
aldermen, Ernie Hoffnagel to replace their mayor Carl Bean. (Cropf, Giancola, & Loutzenhiser,
2012, p. 81). Bean had been conservative and careful with his spending (Cropf, Giancola, &
Loutzenhiser, 2012, p. 81). Bean, a certified public accountant, was painfully aware of the dire
straits of the balance sheet (Cropf, Giancola, & Loutzenhiser, 2012, p. 81). He painstakingly
studied “costs and budgets” while Hoffnagel by contrast, made grandiose statements about
enforcing codes to improve dilapidated structures, enticing outside investment, and improving
the image of Oakdale (Cropf, Giancola, & Loutzenhiser, 2012, p. 81).
As expected, the people voted for Hoffnagel’s promised prosperity over Bean’s cautious
status quo (Cropf, Giancola, & Loutzenhiser, 2012, p. 81). It is easily understandable why the
citizens of Oakdale rejected the cautious and steady Bean for the energetic and flamboyant
Hoffnagel. Mayor Hoffnagel cleaned house in city government and hired as city manager, a
disreputable Angela Donny (Cropf, Giancola, & Loutzenhiser, 2012, p. 81). Donny had a
checkered past at eight previous municipalities. (Cropf, Giancola, & Loutzenhiser, 2012, p. 82).
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Oakdale Administrator Case Study
She had been investigated by the International City/County Management Association, six times
resulting in two censures (Cropf, Giancola, & Loutzenhiser, 2012, p. 82).
Hoffnagel and by extension, Donny, identified a new city center project as the impetus of
Oakdale’s revitalization. The mayor quickly took over the project, without alderman consent,
and authorized “Donny to issue requests for proposals (RFPs) for a project manager.” (Cropf,
Giancola, & Loutzenhiser, 2012, p. 82). Donny took this authority and not only signed
“a contract with the project manager, but with an architect as well.” (Cropf, Giancola, &
Loutzenhiser, 2012, p. 82). Donny’s actions incensed the Board of Aldermen as she had ignored
the due process of collecting competing bids for the work. (Cropf, Giancola, & Loutzenhiser,
2012, p. 82). When Donny could not produce the RFP information on request, and Hoffnagel
could only speak to the “economic feasibility of the project,” the alderman had no choice but to
hire “two independent firms” to assess the projects feasibility. (Cropf, Giancola, & Loutzenhiser,
2012, p. 83).
The contract for acquiring the two properties was fulfilled in September, a month before
the independent report (Cropf, Giancola, & Loutzenhiser, 2012, p. 83). At a cost of $4.2 million,
this acquisition was detrimental to Oakdale’s budget (Cropf, Giancola, & Loutzenhiser, 2012, p.
83). Mayor Hoffnagel dismissed the findings of the independent firms when they were presented
in October (Cropf, Giancola, & Loutzenhiser, 2012, p. 83). The outcome of the report left the
city “more than $4 million in debt” and wanting to cancel the project and sell the properties to
recoup what was possible (Cropf, Giancola, & Loutzenhiser, 2012, p. 84).
Decision
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Oakdale Administrator Case Study
Ultimately the International City/County Management Association conducted an
investigation and determined Angela Donny “had failed to ascertain and distribute the proper
number of RFPs, employed individuals unqualified for their positions, had not demarcated or
updated the responsibilities of her staff, and generally behaved in an unethical manner.” (Cropf,
Giancola, & Loutzenhiser, 2012, p. 84). Ultimately, Donny was terminated, and Mayor
Hoffnagel was left with little choice but to resign (Cropf, Giancola, & Loutzenhiser, 2012, p.
84).
Alderman Alan Hauser summed it up concisely, “What began as a project of hope has
become one of despair. In what has proven to be unethical violations by former City Manager
Donny and what I believe to be a lack of leadership on the part of Mayor Hoffnagel, there is now
a schism in the local government and amongst the residents” (Cropf, Giancola, & Loutzenhiser,
2012, p. 84). The saddest thing of all, however, was, “For the City of Oakdale, which had been
searching for ways to reinvigorate itself, the development project that appeared to be the answer
had turned into a major problem.” (Cropf, Giancola, & Loutzenhiser, 2012, p. 84).
Solution
Mayor Hoffnagel hoodwinked the voters with his promises of immediate impact and
gratification for the City of Oakdale. Naturally a financially depressed community wanted to
hear that the city leaders had a plan to turn things around. Unfortunately, politicians make
promises all the time that go unfulfilled. Next, Hoffnagel put his trust in an unscrupulous city
manager and the two excluded the aldermen from their plans. As Scripture states, “choose able
men from all the people such as fear God, men who are trustworthy and who hate a bribe; and
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Oakdale Administrator Case Study
place such men over the people as rulers…” (Revised Standard Edition Bible, 1972, Exodus
18:21).
Once Hoffnagel and Donny were gone, Alderman Hauser brought in Marie Clarkson as
interim mayor (Cropf, Giancola, & Loutzenhiser, 2012, p. 84). She in turn hired Paul Asher, an
inexperienced but dedicated interim city manager. (Cropf, Giancola, & Loutzenhiser, 2012, p.
85). The results of an independent audit showed overruns in the public works and police
departments of $30,000; Asher would have to find somewhere to make up the difference in cuts
(Cropf, Giancola, & Loutzenhiser, 2012, p. 85).
Cuts are never easy, and in the public sector, cuts mean interruption of services. Clarkson
and Asher appeared to be the right candidates for the job as they brought passion and true caring
along with integrity and ethics to the mounting problem in Oakdale. A possible remedy would
have been to sell the two properties as discussed. (Cropf, Giancola, & Loutzenhiser, 2012, p. 84).
Perhaps the city could get their budget back into the black if the sale was possible and
economically acceptable.
One Alternative solution comes from Anthony D. Anselmo writing for Entrepreneur.com
entitled “6 Ways Small Towns Can Create More Economic Growth.” (Anselmo, 2022). He
hypothesized “economic growth in an area, it comes about in one of two ways: You’re either
growing organically or you’re attracting growth from an outside market and bringing it into your
market.” (Anselmo, 2022). He divides his six methods in half between the internal and external
economic opportunities.
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Oakdale Administrator Case Study
Anselmo advocates 1) “Create new entrepreneurs” (Anselmo, 2022). Here he looks to
bring local investors together with potential entrepreneurs through partnerships with local
organizations. (Anselmo, 2022). 2) “Focus on businesses that are there and create relationships”
(Anselmo, 2022). Anselmo suggests, “use the businesses that are there and find a way to help
build/strengthen relationships with other local businesses” (Anselmo, 2022). Sometimes various
business entities may find value in partnerships and symbiosis with businesses that work in
related spheres, e.g. builders and interior designers and real estate agents all working together.
(Anselmo, 2022). 3) “Look to the big employers in town: larger businesses, hospitals, schools,
etc.” (Anselmo, 2022). Trained employees for these entities are an absolute imperative and large
empty spaces in town could be utilized to complete said training to the benefit of these large
employers. (Anselmo, 2022).
In the realm of attracting outside investors, Anselmo promotes three ideas. (Anselmo,
2022). 1) “Testimonials” that amount to interviews asking businesses, “What were their greatest
pros/cons in the process of moving to the area? Were there any unforeseen challenges they wish
they knew from the start?” (Anselmo, 2022). In the situation where there are no recent investors
to the area, the survey can be given to successful existing businesses in town. (Anselmo, 2022).
2) “Identify what’s missing from town” (Anselmo, 2022). “Are there any businesses that could
move in with little to no competition and generate value for the people of the town? What
opportunities are there where a business can turn profitable fairly quickly? What natural
resources are there for them to use, etc.?” (Anselmo, 2022). 3) “Learn your market to create
incentives to attract talent” (Anselmo, 2022). Through relationships of existing businesses find
out their weaknesses and strengths due to the market and recruit businesses that would appear to
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Oakdale Administrator Case Study
“be a good fit” (Anselmo, 2022). Additionally, “have key points of information on what the town
is doing to drive improvement (high speed internet, reliable transportation, etc.)” (Anselmo,
2022).
According to Mark Moses in a blog for pacificresearch.org, “An organization’s approach
to decision-making guides what it does. No one in the city could explain why the organization
does what it does because no one thinks in those terms. No one questions the traditional
approach or the earlier decisions. But if cities can manage their way into insolvency, they can
manage their way out. They need a framework – a framework for understanding what now seems
incomprehensible – a framework from which real solutions can emerge.” (Moses, 2023, para. 1).
Moses was astounded of the incompetence of city managers. He stated, “Sadly, city
officials – those empowered to direct the organization’s activities – are as confused as everyone
else. They do not know what to do. And they are not asking the questions that would bring them
closer to a productive solution. Whether they think their organization’s struggle to achieve
financial stability is a new normal or an old normal, most city officials accept such ongoing
struggle as the norm.” (Moses, 2023, para. 12).
Conclusion
Typically, today cities and towns, if not counties and states, look immediately to the
federal government to bail them out financially with grants and loans when they overspend or
have shortfalls in revenues. Firstly, these embattled jurisdictions should begin by cutting back on
wasteful spending in all areas and departments including overtime reductions, purchasing, and
freezing hiring and salary increases. Secondly, if the city center is developed, focused police
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Oakdale Administrator Case Study
presence in the area can encourage businesses and patrons alike. To raise revenues, once new
development is in place it could be advantageous to raise city sales tax to make up for
shortcomings in the budget. At the same time, tax incentives, discounted business rent, and other
enticements can be employed to bring in investors and developers.
Ultimately, the voters and Aldermen of Oakdale have to ensure that any future mayors
are the right people for the job. The city managers must also be vetted to verify their character,
abilities, and work record. The leaders elected and selected and the choices they make in our
local government can have a great impact on the future success or failure of a town like Oakdale.
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Oakdale Administrator Case Study
References
Anselmo, A.D. (2022, March 29). 6 Ways Small Towns Can Create More Economic Growth.
Entrepreneur Media, LLC. Retrieved March 2, 2024, from:
https://www.entrepreneur.com/growing-a-business/6-ways-small-towns-can-create-more-
economic-growth/420802
Cropf, R.A., Giancola, J. M., & Loutzenhiser, K. K. (2012) The Public Administration Casebook
(1st ed.). Pearson Education, Inc.
Moses, M. (2023, April 4). Cities in Crisis: How to fix municipal government budgeting.
pacificresearch.org. Retrieved March 2, 2024, from:
https://www.pacificresearch.org/cities-in-crisis-how-to-fix-municipal-government-
budgeting
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Oakdale Administrator Case Study
Revised Standard Edition Bible (1972). Thomas Nelson Publishers.
