A new report from the State Auditor’s Office has found the City of Hudson overpaid developers nearly $583,000 for projects partly supported by tax increment financing agreements.
Hudson officials say they’re consulting with the city’s legal counsel to see what can be done to recover the overpayments to six developers. Two of the projects were for apartment complexes, one of which was built on the border of Hudson and Cedar Falls.
The City Clerk in Hudson called the State Auditor’s Office a year ago, raising concerns about the city’s finances. A re-audit report covering a two-year period has found multiple city accounts had deficits. For example, the City of Hudson issued bonds to cover a more than $700,000 deficit in its Capital Projects Fund. City officials told auditors they are looking into the reasons for the deficit balances and exploring ways to “bring the funds to a positive balance.”