PALMER LAKE, Colo. (KOAA) — $1.3 million is the amount of money Palmer Lake is being accused of misusing, according to a new civil lawsuit filed against the town by two of its citizens.
The lawsuit lists four different federal and state programs from which the town received money. It states the town’s general fund and water enterprise are separate bodies that receive funds in separate ways.
The lawsuit claims that, over several years, money from these four grants was wrongfully and illegally given to the town’s water enterprise to offset the enterprise’s shortfalls.
The lawsuit also claims the town’s administration created false reports to justify this alleged misuse of funds.
The lawsuit names several members of the town’s government, But puts an emphasis on the actions of current Town Administrator Dawn Collins for her alleged role in misappropriating town money. The lawsuit ultimately calls for her censure.
Collins had not commented on the lawsuit as of Monday evening, Memorial Day, but KOAA did hear from Palmer Lake Mayor Glant Havenar and a member of the Board of Trustees, Shana Ball.
Both Mayor Havenar and Trustee Ball stood by Collins, saying the board hired an outside accounting firm to investigate the town’s finances as a result of past claims this lawsuit is referencing. This audit found the couple’s claims to be inconsistent.
Both the Mayor and Trustee Ball say Collins has not committed any wrongdoing as Town Administrator when it comes to town finances.
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