ELNORA — The leadership structure of a small Daviess County community has been thrown into turmoil following the simultaneous, joint resignation of two key elected officials over allegations of systemic municipal mismanagement.
Town Clerk-Treasurer Deanna Callison and Town Councilman Matthew Rollins abruptly stepped down from their respective elected seats, effective Friday, May 29.
In an explicit, joint resignation letter filed directly with the Daviess County Circuit Court Clerk’s office, the duo declared they could no longer ethically or legally execute their duties. They cited a toxic culture of governance characterized by severe legal, financial, and administrative irregularities within Elnora’s local government.
Accountability Red Flags Sent to State Auditors
The joint letter outlines a comprehensive list of deep-rooted grievances that have polarized town leadership for months. Chief among their complaints are bitter disputes regarding:
- Staffing & Arbitrary Hiring: Disagreements over personnel management and non-standard hiring protocols.
- Financial Oversight Blindspots: An alleged breakdown in transparency regarding how town revenue is budgeted and spent.
- Conflicts of Interest: Unresolved ethical questions regarding municipal decision-making.
- Internal Communication Breakdowns: A hostile operational environment that isolated reform-minded leadership.
In a move that signals potential future legal or state-level interventions, Callison and Rollins revealed that they have systematically preserved and retained internal town records substantiating their claims. They stated their intent to formally hand over these dossiers to the Indiana State Board of Accounts (SBOA) during upcoming audit reviews.
The Indiana State Board of Accounts acts as the state’s dedicated financial watchdog. It audits all local government entities to ensure tax dollars are managed in strict compliance with state laws and accounting standards.
The timing of these exits intensifies an ongoing governance crisis for the small town of roughly 600 residents. The town council has been plagued by operational gridlock and vacancy issues over the past year.
Rollins’ exit follows closely on the heels of former Town Council President David Krause, whose departure earlier left the remaining council members struggling to maintain a functional quorum. Meanwhile, Callison’s departure as Clerk-Treasurer leaves an immediate administrative void. As the fiscal officer, the Clerk-Treasurer is solely responsible for managing the town’s bank accounts, processing payroll for utility workers, and maintaining official municipal records.
Because both Callison and Rollins ran and were elected as independent candidates rather than through a traditional major political party, the process to replace them will bypass standard political caucuses.
Statutory Public Notice: Within 10 Days.
The Daviess County Circuit Court Clerk must issue an official public notice declaring the vacancies for both the Clerk-Treasurer and Town Council seats.
Petitions for Appointment: Application Window.
Qualified residents living within Elnora town limits must submit formal applications and petitions to the county clerk expressing interest in the interim roles.
Judicial or Remaining Council Vote: Final Resolution.
Because a quorum of the council may be compromised, the remaining town leadership, in coordination with county legal counsel, will vote to appoint interim officials to serve out the remainder of the unexpired terms.
Remaining town officials have not yet issued a public response to the specific allegations levied in the resignation letter. Elnora residents seeking immediate assistance with town utilities or public records are advised to contact the Daviess County Commissioners’ office while the town transitions to interim leadership.
OFFICIAL JOINT NOTICE OF RESIGNATION
TO: The Clerk of the Daviess County Circuit Court
CC: The Elnora Town Council; State Board of Accounts; Swartzentruber Law; Michael Edwards; The Citizens of Elnora
FROM: Deanna Callison, Clerk-Treasurer and Matthew Rollins, Town Councilman
DATE: May 28, 2026
29 DC (Handwritten)
RE: Resignation from Elected Office
Effective immediately, we, Deanna Callison (Clerk-Treasurer) and Matthew Rollins (Town Councilman), formally resign our respective elected positions with the Town of Elnora.
We took our oaths of office with a shared commitment to transparency, fiscal responsibility, and strict adherence to Indiana State Law. However, it has become clear that the current Town Council majority (President Jerry Beck and Councilwoman Nancy Roark), with the assistance of the Town Attorney, has pursued a course of repeated legal non-compliance and financial risk-taking that we can no longer support.
We cannot, in good conscience, continue to serve in an environment where statutory requirements are routinely disregarded. Our joint resignation is based on the following documented concerns:
1. Sabotage of Internal Controls and Statutory Usurpation
The Council majority recently passed a salary ordinance that eliminated all funding for the Deputy Clerk and Utility Clerk positions. Under IC 36-5-6-7(b), the Clerk-Treasurer is responsible for appointing employees to handle utility billing and collections. By removing funding for these positions, the Council has effectively undermined this statutory mandate and made it impossible for the Clerk-Treasurer to maintain the segregation of duties required by the State Board of Accounts (SBOA). In addition, actions such as sabotaging security camera equipment, attempts to add council members to the bank signatory card, multiple attempts to obtain access to the Town’s financial systems, and rewriting meeting minutes to suit their preferences have directly interfered with the Clerk-Treasurer’s statutory duties and internal controls. The Council has also explored improper budget transfers to artificially suppress utility rates using General Fund tax dollars.
2. Reckless Hiring Practices and SBOA Compliance Risks
Rather than funding the mandated, bondable staff positions for the Clerk-Treasurer’s office, the Council majority has redirected those funds to hire a “Council Assistant.” The primary candidate for this role is currently on active supervised probation for theft and has a prior conviction for False Informing. Placing an unbondable individual with a criminal history involving dishonesty in a position of administrative responsibility creates significant risk to SBOA Internal Control Standards and exposes the Town to substantial liability.
3. Conflict of Interest and Fire Service Liability
The Council President has operated with a clear conflict of interest regarding the Fire Service Agreement. The Council majority has failed to address the serious liability created by paying individual firefighters directly while the contracting not-for-profit entity remains dissolved. Additionally, Council President Jerry Beck has participated in deliberations and votes on matters in which he has a direct or indirect pecuniary interest. To our knowledge, no Uniform Conflict of Interest Disclosure Statement (IC 35-44.1-1-4) has been filed with the SBOA or the County Clerk. These actions create significant audit risk and leave the Town exposed to uninsured liabilities.
4. Unequal Access to Legal Counsel
The Town Attorney has provided legal services and billable work primarily to the Council majority while denying me (Councilman Matthew Rollins) comparable access and advice. I made multiple requests for legal guidance on key matters, including a specific determination regarding Council President Jerry Beck’s conflict of interest by request of State Board of Accounts. These requests were met only with general statements of the law rather than any actual analysis or determination. This unequal treatment has impaired my ability to fulfill my duties as an elected official.
5. Hostile Work Environment
The actions of the Council majority have created a hostile work environment for the Clerk-Treasurer. This includes repeated interference with statutory duties, exclusion from information and decision-making processes, and an atmosphere that makes it untenable to carry out the responsibilities of the Clerk-Treasurer in a professional manner.
We refuse to serve as a shield for actions that place the Town and its taxpayers at unnecessary legal and financial risk.
Simultaneously with this resignation, we are retaining our complete records – including internal communications, financial ledgers, and documentation of these issues as instructed by the Indiana State Board of Accounts. These records will be provided to the SBOA field examiner during their next engagement for a full audit.
The citizens of Elnora deserve a government that operates in full compliance with state law and prioritizes the protection of public resources. We leave office with our integrity intact.
Sincerely,
(Signature: Deanna Callison)
Deanna Callison Clerk-Treasurer, Town of Elnora
(Signature: Matthew Rollins)
Matthew Rollins Town Councilman, Town of Elnora
