LOS ANGELES (CBS/AP) — An audit by the California state controller’s office reveals that the city of Bell is still reeling financially three years after it was discovered the working-class suburb’s municipal leaders had looted millions of dollars from its treasury.

State Controller John Chiang released the audit Wednesday.

He says it shows Bell’s general fund balance has a shortfall of more than $1 million. Bell also owes its residents more than $3 million in taxes and fees that were collected illegally.

Chiang praised the city’s new leaders for conducting business honestly and taking other steps to turn Bell around since residents voted the entire City Council out of office two years ago.

But he says if these and other financial woes aren’t addressed the city faces a “fiscal crisis.”

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