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An official with the Tennessee Comptroller’s Office determined last week that Rockwood Water, Sewer and Natural Gas may have violated state law by allowing interdepartmental borrowing of operating funds.
Rod King, general manager of the utilities, and the city board governing the operations have openly admitted the more profitable gas department has loaned money to the water and sewer departments.
A comptroller’s office review of city finances indicates, however, that the issuance of such loans was not previously approved as required by statute.
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