Sierra Madre : City Rescinds Past Loans
Following a public outcry over city accounting practices and the resignation of longtime City Administrator James E. McRea, the City Council on Tuesday passed a motion revising past financial transactions.
The resolution approved $559,974 in general fund spending over the amount already appropriated for the fiscal year ending June 30, 1992. It also rescinded a number of loans, including a $1-million loan from the Community Redevelopment Agency to the city’s general fund.
The mismanagement of funds was uncovered by residents who asked the council in August for an audit of city accounts. Two weeks ago a special audit report showed that last September McRea moved $1 million from the redevelopment agency to the city accounts without authorization by the agency. Auditors cleared McRea of any criminal wrongdoing but said the loan was not necessary because the redevelopment agency already owed the general fund more than $1 million.
McRea resigned Sept. 1, before the audit was released. Sean Joyce, the assistant city administrator, was appointed to McRea’s post until Oct. 14.
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