On May 22nd, during the second (illegal) meeting,
http://www.youtube.com/watch?v=UKFZjs58I_w&list=UUpOI84ohKOfpWoXxuiFTAXA&index=7&feature=plcpabout 18:42 into the presentation by the town's auditor, he affirms:"Do to cash shortages in the town's unrestricted funds, cash resources from restricted Highway User Revenue Fund monies have been borrowed. Recent developments from audits of various towns by the State of Arizona Office of the Auditor General have concluded that the loaned HURF monies, Highway User Revenue Fund monies, constitutes the spending which is not allowed under the Arizona Revised Statutes.
In 2007, your Highway User Revenue Fund was paid down, paid off, it was zero. You didn't owe any amount. Nothing was blown from that fund. But in 2008, 2009 and 2010 there were borrowings from the Highway User Revenue Fund which according to new information that were were able to acquire from the Auditor General is they consider that spending. If you've blown it, they consider it spending. Ok? The fund balance remains the same because we didn't spend the fund balance, but we loaned some out, some of the cash out and the Auditor General has taken the stand that's spending and that's not allowed. and if it's not a use, a proper use of Highway User Revenue Funds...We recommend that you put together a formal plan to find a way to pay that back.
Gee, isn't that what Foster kept saying last year? They didn't listen to him, did they?