A new report from the state auditor's office says the city of Hamburg and the local economic development council misused state flood recovery funds.

A special investigation by the state auditor’s office has identified conflicts of interest and a lack of documentation for how the City of Hamburg spent some of its flood recovery money. State Auditor Rob Sand said the investigation found family members of a Hamburg City Council member and a city employee may have unfairly benefitted

State auditors say Hamburg city officials appear to have personally benefitted from grant funds intended to help the city recover from the 2019 flood.