Season 2, Episode 3 - The audit of the City of Arnold and its TDDs and the case of officials who operated in the shadows to mislead the public

Episode 3 of Season 2 features a discussion of the audit of the City of Arnold and the two Transportation Development Districts run by the city. The audit, which was prompted by numerous whistleblower complaints, confirmed citizens' fears that the city had operated in the shadows and the grey areas of the law to generate millions of dollars in tax revenue without voter approval, and then used the money to inappropriately fund city developments. The report gave the the city and the two TDDs a "poor" rating while finding the city had numerous conflicts of interest in the creation and administration of the TDDs and had operated with a lack of transparency as it intentionally misled the public.