- Associated Press - Wednesday, August 3, 2016

CASCADE, Iowa (AP) - State auditors say an eastern Iowa city has been giving utility discounts to senior citizens that aren’t allowed under Iowa code.

An audit report released Wednesday said the discounts were discovered as auditors looked into allegations that some Cascade city workers were given exemptions to penalties on late utility payments.

City administrator Deanna McCusker said officials weren’t aware the discounts were considered discriminatory rates and weren’t allowed. She says she’s recommending the council eliminate the discounts at its meeting Monday. She would not comment about their original adoption.

The auditors say the discounts have cost the city around $149,000 since July 2009.

Regarding the penalty exemptions, the auditors found 16 accounts with exemptions from paying a total of nearly $866 in penalties. Four others granted the exemptions incurred no penalties.

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