MARION—Former Marion City Auditor Robert Landon continues to wreak havoc on the city’s finances even after his resignation.

Interim Auditor Marden Watts asked Marion City Council to approve an immediate payment to the IRS for $160,000 to avoid the seizure of the city’s assets and bank accounts.

The payment represents employee federal withholding taxes that were unpaid in the third and fourth quarters of 2020 and the first quarter of 2021. Marden asked for $160,000 so that mounting penalties can be paid.

The original bill was for around $130,000.00. The rest represents penalties levied after Landon sent the payment to the wrong agency. An appeal to forgive the penalties was denied, and the payment was ordered paid by September 16th.

Second Ward Councilman Ayers Ratliff addressed the Council and public in attendance:

“I want to make it clear that Council is seeing this notice for the first time on October 25th. This is way more than a bill. This is a notice of intent to levy (freeze) the city’s assets if the bill was not paid by September 16th. This city is currently in jeopardy that our bank accounts could be seized by the IRS because the former Auditor did not pay the bill,” Ratliff said.

In a press release issued by Landon in October, he assured the public that everything was fine, even as penalties continued to accrue.

Interim Auditor Marden Watts encouraged Council to pay the bill and file a second appeal. That action would mitigate the damage and stop further penalties.

Council expressed its intention to have the city law director write a letter of intent to Landon’s bonding agency to try to recoup some of the losses. Landon was bonded for $100,000.

After discussion among Council and input from the public, a resolution was passed to pay the bill and file the second appeal. “We have no choice but to pay this bill and protect the city from imminent danger,” Ratliff said.

Marion Mayor Scott Schertzer agreed that it’s not a bill he wanted to pay, but the consequences are too great if it’s not paid. He said the check could be issued quickly.

One overall theme between Council and the public was that the taxpayers of Marion should not have to foot the bill for Landon’s incompetence.

Marion Prosecutor Ray Grogan has asked Crawford County Prosecutor Matt Crall to look into potential criminal violations against Landon.

Mayor Scott Schertzer advised Council that he recently received an impromptu visit from three state auditors who came to inform him that the books are not reconciled to their standards. They asked for a meeting with Schertzer, Interim Auditor Watts, and at least two Council members to discuss a plan on how they believe they can reconcile the audit.

Schertzer said this move, while essential, is going to cost the taxpayers even more money. He said the state would require a separate contract with Marion to do the added work required to reconcile the audit. He said they would also need services to assist them in the audit.

They plan to meet with Schertzer, Watts, and council members on November 5th to lay out their plan. Schertzer said he hoped to have the audit reconciled by March of 2022.

Crawford County Now will continue to follow this developing story.