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The Oakdale Case Study serves as an example of what happens when ethics are forsaken
in public administration. As we will see in the following case study, the negligent hiring by the part of an
inexperienced yet charismatic elected official led an already struggling city government to take on
additional debt with a doomed city center revitalization project. These crises will ultimately lead to the
firing of an unethical leader and the resignation of another.
FACTS
The City of Oakdale was first charted in 1941 and is led by a Mayor and a Board of
Alderman (council members). These members then supervise several appointed employees, such as the
City Administrator and others who are responsible for carrying out the mission set forth by the Board.
The City of Oakdale has approximately 5,000 residents, and the vast majority of the citizenry is
considered to be lower middle class, with a median income of $47,869. The average home value in the
city is $100,900. This is in stark contrast to the neighboring city of Silver Lake to which many of the
residents compare their city to. Silver Lake has 7,000 residents with a median income level of $109,345
and home value of $359,888. The city of Oakdale in comparison to Silver Lake is considered to be
rundown with several homes and businesses in the city “appear worn, even, in some cases, seriously
dilapidated” Whether the cause of this regression or an effect of it, the city is in an economic decline
and the government is behind surrounding jurisdictions in revenue and expenditures. The city’s budget
has remained flat at approximately 3.5 million dollars, with multiple departments operating significantly
over budget.
In 2003 municipal elections were held in which a charismatic and idealistic car salesman Ernie
Hoffnagel was elected Mayor. He ran on the platform of revitalizing the city by attracting new businesses
and homeowners. He ran against the Incumbent Carl Bean, an accountant, who was far more
conservative and believed Hoffnagel’s ideas were too lofty and idealistic. Upon getting elected,
Hoffnagel immediately fired all of the city’s previous administrative officials and began to hire staff that
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he had worked with before. This included one hire that would prove to be controversial, and that was
the position of the new City Administrator, Angela Donny. Donny had a storied past in which she had
worked for multiple cities and has been investigated for ethical concerns on numerous occasions. Once
Hoffnagel dealt with the public outcry for Donny’s hiring, they set a course towards beginning a city
downtown revitalization project. This project had previously been discussed before Hoffnagel’s being
elected as Mayor but once selected, he took issue with the lack of movement on the project and
unilaterally gave Donny the job of getting the project started immediately. This move was controversial
because it was done without consulting the other Alderman. Donny did just that but did so in a manner
that did not follow proper due process. Only one week after being given this task, Donny reported that
she had gotten not only proposals but also signed a contract with a project manager and architect. This
did not sit well with the Alderman, who requested that she supply the appropriate requests for
proposals (RFPs) to ensure that multiple offers were considered, and the city’s best interests were
honored. For months Donny did not supply them and ultimately stated that she and her staff lost them.
The Board of Alderman requested two independent firms to conduct a feasibility study which came back
with negative results for the project. This was not until; however, the city had already purchased
properties in excess of 4 million dollars to begin the project. During this process, another investigation
was conducted into Donny and revealed that she had hired unqualified people, had not updated the
responsibilities of her position or staff, and “generally behaved in an unethical manner” (Cropf et al.,
2015 pg83). This investigation ultimately led to her firing and the resignation of Mayor Hoffnagel.
DECISIONS
The City of Oakdale is now left with an incomplete project and a vacant mayoral and city
administrator position. The Alderman appointed an interim mayor and city administrator until the next
election could take place. Paul Asher was hired as the new city administrator and was quickly given the
task of determining what to do with the unfinished project. The decision made by the Board of
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Alderman to terminate Donny as city administrator was the correct one. Had they chosen to allow the
behavior, she and the mayor engaged in the city would have been in an unknown amount of debt for a
project with a negative outlook on success. The city of Oakdale could have been in a similar position to
that of the city of Dixon, Illinois, whose comptroller embezzled more than fifty million dollars from the
town over the course of 23 years (DOJ 2013). By appointing an interim mayor and administrator, the
Board allowed the city to move forward and make appropriate decisions to ensure the city is in a stable
financial situation going into the next municipal election.
SOLUTION
When the city staff makes the decision regarding the fate of the downtown project, there are
positives and negatives to both choices to either cease or continue the project. With those factors in
mind, below is a proposed solution for the City of Oakdale:
1. Cease the project and see all proprieties that were acquired for the project.
2. Mandate that all city departments operate within their Board of Alderman-approved budgets
and hold department heads accountable for any deficits.
3. Utilizing any money made off the sale of the properties, hire a consulting agency to work with
city staff and residents to determine the best past forward to revitalizing downtown.
4. Hold town hall meetings to explain the situation that the city was in an effort to enhance trust
and transparency between the government and the citizens, as well as seek their input on the
future of the project.
5. Consider a government corporation like what the City of Burlington, NC “Burlington Downtown
Corporation,” created, thus encouraging the private sector to be a part of the process of
revitalization and relieve the city of being the sole group attempting to bring back downtown
(Burlington Downtown Corporation, 2021).
6. Have new the newly established downtown corporation seek appropriate grant opportunities.
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CONCLUSION
The Oakdale case is an excellent example of how things can go wrong when city leaders
operate in an unethical way. Often city staff and residents talk negatively of government policies
and procedures, commonly referring to them as “bureaucratic red tape”. While sometimes
cumbersome these policies and procedures, such as seeking multiple bids on projects, protect
the government and tax-paying citizens from the unethical behavior of public administrators.
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REFERENCES
Burlington Downtown Corporation. (n.d.). Retrieved November 11, 2022, from
https://www.burlingtondowntown.com/about-us:
https://www.burlingtondowntown.com/about-us
Cropf, R. A. (2015). The Public Administration Casebook. Taylor and Francis. doi:DOI:
10.4324/9781315662404-11
US Attorney's Office, N. D. (2013, 2 14). Former Dizon Comptroller Rita Crundwell Sentecned to Nearly 20
Years in Federal Prison for $53.7 Million Theft From City. Retrieved from
https://www.justice.gov/usao-ndil/pr/former-dixon-comptroller-rita-crundwell-sentenced-
nearly-20-years-federal-prison-537#:~:text=Crundwell%2C%2060%2C%20formerly%20of
%20Dixon,business%20and%20life%20of%20luxury.
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