The city of St. Paul was routinely withholding overpayments it should have refunded to landlords until a city employee complained about the practice to state auditors.
The city official in charge of the Safety and Inspections department said that changes will be made in the billing system and that about $800 in overcharges on 29 transactions were an inadvertent mistake.
But the city employee who complained to the State Auditor's Office says the department managers knew money wasn't being refunded and did nothing about it. She also says the amount withheld was well more than $800.
"Bottom line is, it's the people's money, and I'll deal with what I have to deal with," employee Geri Boyd said.
City officials won't comment on personnel issues.
State law requires government employees who think they have found evidence of financial wrongdoing, such as theft or unlawful use of public funds, to report the alleged incident to the state auditor.
Employees should be able to make a complaint without facing any retribution.
State Auditor Rebecca Otto said she couldn't confirm or deny an investigation into the department.