Press Release from Ed Hatchett, Release Date: February 19, 2001 Audit online at (Audit Report): http://www.auditor.ky.gov/Public/Audit_Reports/Archive/1998-2000_Sparta_Audit.pdf Audit online at (City Response): http://www.auditor.ky.gov/Public/Audit_Reports/Archive/1998-2000_Sparta_Response.pdf |
Commonwealth of Kentucky |
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(Frankfort - February 19, 2001)
The City of Sparta's 1999 attempt to issue a license for an adult lounge, motel, and restaurant complex was ineffective and created apparent conflicts of interests, according to a report issued by State Auditor Ed Hatchett.
The report says Sparta's adoption of a resolution to authorize the issuance of an adult lounge business license, rather than enacting an ordinance, is legally insufficient, and the business license is therefore invalid. The report also noted the appearance of potential conflicts of interests in the issuance of the license. "Having announced its intentions to regulate adult entertainment, including imposing an annual $5,000 renewable license fee, the city changed direction. This coincided with the city's acceptance of money and property from the business owners," said Hatchett. "It then issued a 20-year business license for a fee of $10,000. We find these facts and this chronology troubling." The report also noted Sparta's failure to comply with a federal requirement for a Community Oriented Policing Services (COPS) grant, resulting in the city's improperly using $1,088 of the grant proceeds. In addition, the city spent nearly $8,000 in Municipal Road Aid funds improperly by using them to purchase, equip, and maintain a police vehicle. |
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