CINCINNATI (AP) — A judge says the city of Cincinnati improperly borrowed millions of dollars designated for neighborhood projects to pay its taxes to the school district.
Hamilton County Common Pleas Judge Robert Gorman on Monday ordered the city to repay $4 million to neighborhoods and told officials not to make similar internal loans in the future.
The Cincinnati Enquirer ( ) reports that the court will set a repayment schedule.
City council insisted it had always intended to pay the money back, but did not set aside the money for it in the 2015 operating budget. City lawyers argued that it was OK because it was an “internal loan.”
The money will benefit the 12 neighborhood districts where community leaders can now start planning improvement projects.
Information from: The Cincinnati Enquirer,