MONROE - Monroe Main Street has paid up its outstanding bills, and is moving ahead with creating new by laws and article of incorporation.

City Treasurer Cathy Maurer said Main Street paid off $12,000 last month for some bills that the city paid for the young organization several years ago. The debt has just been carried along on the books since then.

"It was always carried forward," Maurer said.

The past debt came to light last October following an audit of the city's accounting books, just as Main Street was preparing to cut its ties with the city and become a separate tax-exempt, non-profit entity.

At that time, Maurer told the Monroe Main Street board of directors that auditors believed the city had been carrying a $62,800 debit on its financial books from Monroe Main Street since 2007.

The timeframe of the discrepancy coincided with contributions from Swiss Colony for a study on the streetscape project, and with a change in the city's computerized accounting program. Maurer asked to see "the other side of the books" to verify deposits Monroe Main Street made to its account.

Maurer also reported in mid-October that the balance in Monroe Main Street's account was $33,000, and Ryan Wilson, board chairman, said no decisions about Monroe Main Street's future structure would be decided until the financial situation was resolved.

Maurer said a review of Main Street books cleared up $50,000 of the disputed debt, and left only the $12,000 outstanding.

The cleared debt now allows Main Street to put together its 2011 budget and to proceed with its new structure and a search for an executive director.

Monroe was selected for the Main Street program in the summer of 2005. It will receive for 2011 about $28,000 from taxes raised by the Monroe Business Improvement District (BID) and $25,000 from the city through the Tax Increment District No. 7 funds (TIF 7). Monroe Main Street also raises funds from donations and sponsors of events.