PHOENIX — An audit shows Surprise's financial problems are far worse than previously known and there's a $16 million shortfall in the city's operating budget for the current fiscal year.
Mayor Sharon Wolcott says the city knew it would have to repay $73 million that had been misallocated over the course of a decade.
She says the newfound errors were revealed during an independent audit of the city's end-of-year books from the last fiscal year.
Wolcott tells the Arizona Republic that Surprise will cover the shortfall with money from its general fund, draining a $13 million reserve and leaving a $3 million deficit heading into the next fiscal year.
State law requires the City Council approve a balanced budget, so Surprise will have to make cuts in the coming fiscal year.
