SUNNYVALE - Despite its proximity to big-city Dallas, Sunnyvale is still a small town. With 5,000 residents, rumors seem to fly at the speed of light.
But residents can walk into City Hall and easily pay their water and tax bills, without standing in line. Several thousand dollars in cash come in every month.
In November, city manager Scott Campbell says he discovered $6,500 missing.
A notice went up on the city's website, and a warrant was issued for Kathy Henderson Dewey, the former city secretary, who served loyally since 1998.
But weeks later, after she was released on bond, she says no one has even talked to her in the case. Her attorney says a fuzzy investigation has been done in the dark, and it's ruining Kathy Dewey's life.
"It's just a cursory investigation, and they say it's her fault," said attorney Phillip Linder. "And that's tarnished her reputation in the community where she's worked for 12 or 13 years."
City council member Pat Wille says cash-control procedures at City Hall were lax and that a number of people, including the city manager, could have taken the cash. He also said he asked for a copy of Dewey's arrest warrant weeks ago and never got one. There is none on file.
Wille has serious questions about the openness of city government, as well as the city manager.
"Here have been several council members who are concerned about Scott Campbell," Wille said.
The council member says he's been so upset about the atmosphere at City Hall, he's considered resigning.
For his part, city manager Campbell said the city attorney has hired an accounting firm to track weaknesses in the city's accounting system, as well as find where the money went.
Sunnyvale has no police department. Instead, it pays the Dallas County Sheriff an annual fee for law enforcement. Campbell said the Dallas County Sheriff is investigating the case. He admitted the sheriff does not normally look into financial crimes.
"What I told the Sheriff's Department is, I believe we've been the victim of a theft," Campbell said. "And I'd like to report that. On advice of our town attorney, that's what they did. And that's how this played out."
Kathy Dewey does not appear to fit the description of a thief.
She said she had access to all the city's electronic accounts for weeks after she left her job, and no one sought to ask her about them. She says she terminated that access herself.
Meanwhile the city says its investigation should be completed in about 30 days.
E-mail bharris@wfaa.com








