The Region

Faulty management practices, unchecked housing developments and over-generous compensation to employees has brought the City of Fontana to the brink of financial ruin, according to an audit by Arthur Young & Co. The 300-page report included 200 recommendations to correct various problems--including a proposal that city officials balance future growth in housing with additional industrial and commercial business to improve the tax base. The City Council hired the accounting firm six months ago after city Finance Director Edwin Luekemeyer resigned under fire. Luekemeyer is presently awaiting trial on 55 charges.

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