A routine audit of Pacific Grove’s books found that the city failed to document transactions and reconcile account balances last year which could affect the city’s ability to borrow money and issue bonds, city officials said.
The city’s finances have been in a tangle as a result of poor bookkeeping and overspending since at least 2000, said city officials and members of the city’s ad hoc budget and finance committee.
In December, Colangelo told the council that an inaccurate record keeping had caused the city to work with inflated numbers for six years in planning the budget. As a result, the city had overspent about $500,000 each year since 2000, including $1.9 million of reserve funds. Now, the city is considering putting tax measures on the ballot to bring in revenue to refill the depleted coffers.