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San Bernardino official says money borrowed from restricted funds

Posted: July 17, 2012 4:00 p.m.
Updated: July 17, 2012 4:00 p.m.
 

SAN BERNARDINO, Calif. (AP) — A city official says authorities borrowed money from restricted funds to meet payroll and other expenses and eventually could not repay the funds within the same fiscal year.

The San Bernardino Sun reports that San Bernardino Finance Director Jason Simpson told a City Council meeting Monday there was no sign of this borrowing in the budgets given to the council.

Simpson says the practice is not common in other cities.

The revelation came after City Attorney James Penman said 13 of 16 years of budget documents were falsified, masking the city's deficit.

Last week, the council voted to authorize Penman to file for Chapter 9 bankruptcy to ease a dire cash crunch. The council meets Wednesday to consider declaring a fiscal emergency to avoid mediation and head straight to bankruptcy court.

Copyright 2012 The Associated Press.

 

 

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