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Montebello's finances under increasing scrutiny

Montebello is under increasing scrutiny by the state, which has likened the city's financial habits to those in Bell.

December 29, 2011 12:00:00 AM PST
The cash-strapped city of Montebello is under increasing scrutiny from the state over its finances.

The state controller says the city's money mismanagement is so severe that it can be compared to the scandal in Bell.

The recent audits do not allege criminal wrongdoing in Montebello, but did turn up questionable expenses, lax spending controls and poor bookkeeping.

The city is accused of a possible case of pension spiking and of misusing a federal housing grant.

The city says it is working to correct deficient earnings reporting, while improving oversight of taxpayer money.