A state audit has found that a small northwest Missouri city improperly transferred about $860,000 from utility revenues to its general fund while raising sewer and electric rates.
In the audit released Thursday, Missouri State Auditor Nicole Galloway gave the city of Gallatin a "fair" rating — just one level above the lowest possible rating.
Galloway said in a written statement that residents "deserve more transparency."
The auditor's also said that the city allocates 75 percent of the wages of the city administrator, clerk, and deputy clerk, along with other personnel costs and general expenses to the utility departments. Gallatin officials were unable to provide documentation to support the allocations.
City administrator Tony Stonecypher said the city was "happy to get some help doing its job better."