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Glendale wrongly used $6M in trust money

PHOENIX — An internal audit shows Glendale administrators improperly took about $6 million from a city trust fund over three years to cover expenses.

The audit obtained by The Arizona Republic shows the account dropped from about $8 million in July 2010 to less than $3 million in June largely because of the improper transfers. The trust fund is essentially a self-insurance policy to cover personal injury or property damage liabilities.

The audit found city staff used the money during tight budget years to pay other bills. That means the city may come up short of cash to cover liabilities.

The fund board apparently wasn’t told, but the City Council was told of some payments.

The revelations come as Glendale voters decide Tuesday whether to repeal a temporary sales tax increase.


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