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Water, sewer fund audit finds $1 million used inappropriately

An audit of the way the city spent water and sewer funds in 2003 found $1 million were used inappropriately. KPBS reporter Alison St John has more.

The audit was commissioned by Mayor Jerry Sanders, after questions arose over whether water and sewer rates were siphoned off to other cash strapped city departments. The auditor found several examples of questionable transfers Sanders concluded this did not constitute abuse of rate payer funds.

Sanders: "I'm pleased to announce the auditor did not find any evidence of abuse of rate payer funds or misuse of bond proceeds. What the auditors did find is sloppy booking in potentially inappropriate charges by the water and wastewater funds totalling $1 million."

Sanders says he'll ask the city council to refund a million dollars to the water and sewer departments from the city's general fund.

Sanders set up a task force to decide if more money should be reimbursed, and how to prevent the so-called sloppy book keeping in the future. Alison St John, KPBS News.

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