by Richard Gleeson
Northern News Services

NNSL (May 23/97) - City aldermen are outraged that Tuaro Dairy was underbilled for seven months last year.

"I'm disgusted with this," said alderman Trevor Kasteel.

That was his response to a city hall billing botch that resulted in Tuaro -- a company which city finance director Joe Kronstal is a major shareholder -- paying $12,000 less than it should have in lease payments last year.

Kronstal is also president of Tuaro's board of directors, said company spokesman Ben MacDonald.

"This is totally unacceptable -- I don't think its fair to council and I don't think its fair to the public," said Kasteel.

The dairy's monthly lease payments to the city were supposed to increase from $1,750 to $3,750 June 1, 1996 and then to $6,756 starting Dec. 1. Instead, it was billed only $1,750 until January this year.

Senior administrator Doug Lagore said Tuaro made a $6,750 payment Tuesday on its lease arrears of $49,567.74.

"I agree with Trevor," said alderman Vi Beck. "I do not think anything was done deliberately. What concerns me is no red flags went up, but everyone down to the janitor knew how sensitive this issue was."

"Somebody was very irresponsible and incompetent to let this happen," she later added.

A staff report says an "administrative oversight" resulted in Tuaro being under billed.

"There's no question the a city employee made a mistake," said Lagore, adding that as senior administrator he bears ultimate responsibility. "But we're only human, we make mistakes and we take appropriate action."

Kasteel asked MacDonald how it was that a new business on a tight budget didn't notice the extra money.

"Isn't that something that would have stood out?" asked Kasteel.

"All I can say is the people producing the checks for the dairy didn't realize an error had been made," replied MacDonald.