NEWS RELEASE

Mayor Jennifer P. Dougherty

CONTACT: Jeanette Eleff, Public Information Officer, 301-360-3842

FOR IMMEDIATE RELEASE: Friday, May 3, 2002

CITY’S AUDIT OF SPECIAL ASSESSMENT DISTRICTS TO BEGIN MAY 5

The City of Frederick has chosen Grant Thornton, LLP, from Baltimore, to conduct the audit of the special assessment districts.

Mayor Jennifer Dougherty requested the investigation in January after reviewing a letter from an unidentified former elected official. The former elected official called for an audit into the use of money raised from the special assessment districts and questioned how the districts were created.

Two of the three districts that regulate builder and developer water supply hook-up costs may not have been formally created by any action of the Mayor and Board of Aldermen.

“This situation is definitely worthy of an investigation,” stated Mayor Dougherty. “I look forward to reviewing the findings of the audit. Corrective actions, if necessary, will be taken.”

The scope of the audit is to compile a list of property owners who paid special assessment fees in the Carroll Creek and General City districts over the past 3 years.

Grant Thornton, LLP, quoted the cost for conducting the audit at an average hourly rate of $76.53 per hour. The total price is not to exceed $28,850.

The audit will begin on Monday, May 5, 2002

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