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The special investigation into Hamburg's financial records was requested by Fremont County Attorney Vicki Danley after former Hamburg city water clerk, Valerie Lang, voiced her concerns in October 2005 of claims, checks for cash and other transactions she believed Holliman used for his own personal financial gain.
Holliman was released from jail Wednesday after posting a $19,500 bond. He believes the charges against him are "pretty baseless."
"I'm surprised they've taken it this far," he said. "I think basically from the start of the investigation, it was a planned outcome."
The theft by misappropriation charge stems from an incident in July 2005 in which Holliman billed the city $1,525.88 for metal culverts that were installed by a business Holliman owns on private property. According to a press release from the Fremont County Sheriff's Office, Holliman also subsequently billed Bartlett Grain for the metal culverts, but denied doing so.
Holliman said a portion of the tubing for the culverts was on city property, which is why the city was billed for the service.
The second-degree theft charge stems from another incident in July 2005 when Holliman reportedly requested that City Clerk Georganne Stephens write him a check for $2,000 without a supporting bill or claim. Stephens wrote Holliman the check after he said he would provide a claim at a later date.
"Despite several requests by Stephens, Holliman never produced the claim," the press release from the Fremont County Sheriff's Office stated.
According to Holliman, the money was to be paid in cash for a street repair by Illinois contractor. Though the mayor eventually returned the money to City Hall after it was requested he do so, he was unable to provide the names or specifics of the contractor and never consulted the council about such an expenditure, according to the press release sent by the Iowa Attorney General's office.
"We're not worried about (the charges)," Holliman said, referring to he and his lawyer, David Herzog of Omaha.
Holliman is serving his second consecutive, four-year term as mayor. His term is up in December 2008.
While Holliman plans to continue his duties as mayor, the Attorney General's Office is seeking to remove him from office.
"We expect to initiate a removal action in the near future," said Iowa Attorney General's Office spokesman Bob Brammer.
An arraignment date regarding the recent charges has not been set. A Class D felony is punishable by up to five years in prison and a fine of $750 to $7,500.
Holliman's trial in regards to the animal abuse charges against him is set for Dec. 12.
The charges stem from an incident in September 2005 in which former Hamburg Police Chief, Nick Milsap, shot and killed seven dogs and puppies. Millsap reportedly consulted with Holliman before disposing of the dogs.
Holliman has said he never directed or permitted Millsap to shoot the animals.
