Sunnyside, WA
The special meeting held on Thursday night in Sunnyside was a spectacle of dysfunction: finger-pointing, denial, and political theater.
WATCH YOUTUBE VIDEO OF BUDGET MEETING 11/12/25
Current leadership — City Manager Jim Bridges and newly appointed Finance Director Monica Hofstetter — spent the night attacking former staff and rewriting history rather than taking responsibility for the crisis unfolding under their own watch.
But the truth is simple:
Sunnyside’s financial collapse was predicted more than a year ago, documented in detail, and handed to the council with solutions — solutions they ignored, dismantled, or sabotaged.
To understand why Thursday night’s blame game was so reckless and misleading, we must revisit the August 24, 2024 budget workshop — the moment when this crisis was laid bare by seasoned professionals hired to fix the system.
A Year Before the Collapse, former Sunnyside City Manager Gonzalez warned the Council — and brought in professionals to repair the system
At that August 24 workshop, Mike Gonzalez publicly warned the council that Sunnyside was heading toward a multi-million-dollar deficit. “We’ve turned over the rocks… we could be facing up to a $4 million deficit heading into 2025.”
WATCH YOUTUBE VIDEO OF MIKE GONZALEZ EXPLAING DEFICIT HE INHERITED 8/24/24
Gonzalez identified the real causes:
• The Munson property sale booked early — a $4 million mistake
• One-time ARPA funds covering ongoing operations
• Inflation, healthcare, utilities, and slow revenue growth choking the budget
• Internal accounting practices lacking consistency and reliability
But here’s what made the difference:
Gonzalez took action the moment the problems surfaced.
He hired one of the strongest financial recovery teams Sunnyside has ever had:
• Dave Zabell, former Yakima and Pasco City Manager – now with YVCOG
• Marie Mosley, former Kennewick City Manager
• CPA Luis Lopez, with a master’s in accounting
• Debbie Zabell, former Toppenish City Manager
• Finance Director Kelly Koskie, now the Finance Director for the City of Zillah
For the first time in years, Sunnyside had:
books being reconciled
grants being documented
financial controls being rebuilt
a long-term recovery plan underway
Then the politics hit.
Before the work could be completed, Gonzalez was pushed out by now ousted-Councilmember Theresa Hancock and her allies Jorge Galván, Keren Vázquez, and lame duck Vicki Ripley. The professional team disbanded, the repairs stopped, and the crisis now exploding was born entirely from that choice
Zabell’s Expert Analysis Confirmed the Truth — The Issue Was Policy, Not Fraud.
At that same August 24th workshop, former Pasco and Yakima City Manager Dave Zabell gave a sober, professional breakdown of Sunnyside’s finances. His conclusions were clear:
WATCH DAVE ZABELL GIVE HIS ANALYSIS
On the size of the deficit:
“The manager mentioned a number approaching $4 million… That’s a pretty big nut to crack, said Zabell”
On reserves:
“That $14 million number is all funds — the general fund is only about $3 million.”
On the root problem:
“This isn’t embezzlement or anything criminal… It’s policies and how funds were used.”
On the Munson property sale:
“Using a real estate transaction to fund ongoing operational expenses — that’s what we’re going to find.”
On what needed to happen:
“You’re going to have to do both — expenditure reductions and revenue enhancements.”
“Water rates will have to go up.”
He also warned:
“It would have been great to have this discussion earlier in the year.”
Meaning:
Had the council listened to Gonzalez and his team, none of this would be a surprise today.
Fast-Forward to Thursday Night: Blame Everyone Except the People in Charge
Jim Bridges has been in control of city’s budget for 6 months
Rather than accept responsibility for the six months they have been in full control, Hofstetter and Bridges spent the night blaming:
- former Finance Director Debbie Zabell,
- former Finance Director Kelly Koskie (now Zillah’s Finance Director),
- accountant Luis Lopez
- Former Finance Director Jamison Horner
- Former City Manager Elizabeth Alba
- Hofstetter even blamed the current crisis on the 2010 council’s budget mismangement
- and essentially anyone no longer employed by the City of Sunnyside.
Hofstetter made a long list of reckless, evidence-free claims:
• “Things were put in the wrong line items — I had to undo everything.”
• “None of the utility tax revenue was allocated correctly.”
• “A lot of the reports were fabricated.”
Mayor Dean Broersma took it a step further, accusing Koskie of providing “fabricated documents.” Something that may get him sued again for his constant foot in his mouth moments. Broersma has already cost the city money for violating first amendment rights.
Broersma’s reckless and irresponsible claims:
contradict Zabell’s professional analysis
contradict the documented timeline
contradict the financial reports
contradict reality
This was political deflection — not financial truth. Hofstetter’s Proposals Were Also Reckless — And Possibly Illegal.
At the meeting, Hofstetter announced the city was $2 million short and proposed extreme cuts:
• eliminating administrative assistants
• refusing to hire a Public Works Director
• refusing to hire a Community & Economic Development Director
• freezing positions
• eliminating Dispatch and outsourcing to Yakima County
Dispatchers are represented by Teamsters. Publicly announcing outsourcing plans without bargaining is a major labor law violation:
• “Bargaining in public”
• “Direct dealing”
Both can trigger unfair labor practice charges under RCW 41.56.
This is what happens when people with no experience in labor law or municipal finance try to run a $50 million organization
Growing Concerns About Hofstetter’s Qualifications
Growing concerns are emerging about Monica Hofstetter’s ability to manage a $50 million municipal budget. Her publicly available employment history on Linkedin shows a rapid series of short-term positions over the past five years—including brief stints at Ben Franklin Transit, the City of Pasco, North Country EMS, and a variety of administrative and finance roles, some lasting only months. Sources familiar with her time at Ben Franklin Transit say she resigned in lieu of being terminated, adding to questions about stability and performance. Compounding this, Hofstetter has simultaneously marketed herself as a real-estate agent, raising uncertainty about whether she continues to pursue side work while serving as Sunnyside’s Finance Director.
The concern intensified at Wednesday’s meeting when she appeared unfamiliar with several basic bargaining-unit terms—an unexpected lapse for someone overseeing a multi-million-dollar budget and in stark contrast to her confident claim at her first meeting that she had mastered the entire budget over a single weekend of 12-hour days.
The New Council Saw the Dysfunction Clearly
Newly elected Councilmembers Leticia Zezati and Ramón Chavez sat in the audience watching in disbelief. What they saw was alarming:
• Leadership with no command of the numbers
• A finance system unraveling under inexperience
• Former staff being scapegoated
• Legally dangerous statements about outsourcing
• Zero ownership, zero accountability
They now inherit a disaster — one they didn’t create, but one they must now repair.
Conclusion:
Sunnyside Needs Truth, Competence, and a Forensic Audit — And Gonzalez Should Be Brought Back
The disaster on display Thursday night wasn’t accidental.
It was the predictable outcome of:
• ignored warnings
• removal of qualified staff
• political interference
• and leadership unprepared for the responsibilities they assumed
Sunnyside doesn’t need more blame.
It needs:
A full, independent forensic audit
Competent leadership who understands municipal finance
And the return of the one person who started fixing this crisis before politics got in the way:
Mike Gonzalez should be brought back immediately to right the ship that he was already fixing.
