OAKRIDGE, Ore. - The community of Oakridge got some answers Thursday night on why their city is on the brink of bankruptcy.
A forensic auditor reviewed the city's budget and found that the city was spending more in different departments within the city than it was taking in.
In fact, the auditor said that over a two-year period the city spent $1.2 million more than it was taking in. The major financial fiasco costs two dozen jobs and put the city short close to $420,000.
The Acuity Group could not find any evidence that money was misused by the city.
Oakridge City Councilman Jerry Shorey said the problem started years ago when funds started coming out of the Local Government Investment Pool.
"It's an accumulation of years of this sort of thing going on," Shorey said.
The councilman said the city needs better financial accounting and a system where the department heads are more involved - not just the city administrator.
"The city administrator under our charter looks at everything and has his thumb on everything and that's OK to a point," Shorey said. "But that kind of takes the incentive from the department heads."
Shorey said as a councilman he feels horrible about the fiasco. The councilman said he's determined to fix the situation.
"I'm only on the council for another year and I'd hate to saddle this with anybody, or leave anyone else with this problem," Shorey said.
The auditing firm said the investigation is ongoing. The city council is looking at ways to restructure city staff.