PETERSBURG, Va. — Taxpayers in Petersburg have spent over $1 million during the last year on firms hired to pull the city from the brink of insolvency.
About $830,000 was paid to turnaround consultants with Robert Bobb Group, a Washington, D.C.-based firm. An additional $195,000 was spent on a forensic audit by another firm.
At one point last fall, the city had only $75,000 in its checking account. That amount was not enough to meet payroll or to keep current on mandated payments to the Virginia Retirement System.
City officials now predict that Petersburg will have $2 million in savings left over from the fiscal year that ended on June 30.
The cost of the services provided by the Bobb Group was criticized by detractors of the proposal to hire the firm last fall.