CHESTERFIELD, Ind. — A quarter of a million dollars is no small sum for a town of 2,700 to lose.

But the news that Chesterfield officials misappropriated more than $250,000 from the town coffers came as little surprise to residents.

“People have been talking about that for a long time, long before the investigation started,” said Glenn Thomas, 58, who has a rural Anderson address but shops at Harvest Market in Chesterfield. “They always said it was Jamie Kimm.”

Former town marshal James Kimm is one of five town employees ordered to repay the funds after a State Board of Accounts audit was released on Thursday. The audit details unsubstantiated travel expenses and equipment purchases, and the repair of police cars and other municipal vehicles by a phantom mechanic.

“Just look at the parking lot, they’re all brand new cars,” Thomas said.

Asked whether the people of Chesterfield have lost faith in the police department, Thomas said his scorn was reserved for Kimm alone.

Chesterfield’s annual operating budget is roughly $1 million, but that figure excludes another $200,000 to $300,000 in the sewer and water fund. In other words, the mismanagement reported in the audit sapped Chesterfield of one quarter of its budget.

Town Council President Jack Taylor said Chesterfield is currently down five employees. Since Robert Stewart replaced Kimm as police chief, his position on the police force has not been filled; a part-time officer has also been cut. Two employees cut from the water department have yet to be replaced. Candy Bennett was promoted to replace Parrish as clerk-treasurer and no replacement has been hired for her, either.

If not for the misappropriated funds, it seems, the town could have hired more workers, provided its residents with better services or carried a surplus in its budget.

Carol Fitzsimmons, 66, said the town could have at least put on a better Independence Day fireworks display.

“It was about the worst show I’ve ever seen,” she said. Although Fitzsimmons had not yet heard of the audit Thursday afternoon, she was able to name some of the officials involved.

“I knew it was (former Clerk-Treasurer) Chris Parrish and (former Utility Superintendent Christopher) Walters,” Fitzsimmons said. “Have they been arrested? If it was you or me, we would have been arrested.”

Contact Justin Schneider: 640-4809, justin.schneider@heraldbulletin.com