State poised to withhold highways funds to Superior and Mammoth for not repaying non-statutory loans

superior

By James Hodl | Copper Area News

superiorCharges by the Arizona Office of Auditor General (OAG) that the towns of Superior and Mammoth misdirected funds targeted for road, bridge and transportation projects to other municipal uses could soon result in the state withholding further highway funds to both communities. Without such funding, local construction and maintenance of streets and bridges could grind to a halt.

Both towns, plagued by declining populations and tax bases, reportedly loaned these highway funds to cover shortfalls in the budgets of other municipal projects. But because of the economic downturn in late 2008 the two towns were unable to immediately pay the monies back into the highway fund.

OAG uncovered the loans in a 2011 audit, declared them outside the scope set by Arizona law, and has ordered the towns to restore the redirected funds. But due to continued revenue shortfalls, Superior and Mammoth have been unable to restore these funds, prompting OAG to ask the Arizona Treasurer’s Office to suspend sending further highway funds, which are derived from state and local taxes, until the lost monies are repaid.

Continued

Share this!

Additional Articles

Top master-planned communities for 2024

By AZ Big Media Here are the Top 10 master-planned communities in Arizona, based on public voting for the 2024 edition of Ranking Arizona, the state’s biggest and most comprehensive business opinion poll. Ranking Arizona

Read More »
News Categories

Get Our Twice Weekly Newsletter!

* indicates required

Rose Law Group pc values “outrageous client service.” We pride ourselves on hyper-responsiveness to our clients’ needs and an extraordinary record of success in achieving our clients’ goals. We know we get results and our list of outstanding clients speaks to the quality of our work.