A Kentucky city has agreed to drop its lawsuit challenging the state auditor's authority to do special examinations of cities.
Assistant Auditor Libby Carlin says Auditor Adam Edelen's office will bill Somerset $50,000 to cover the costs of doing the exam that led to the suit.
The exam cited a number of problems in city financial and personnel practices.
Those problems included failing to get bids as required for some work, not having contracts in place for special deals on city natural gas and failing to follow the pay and job-classification plan.
Edelen's office referred findings to the state attorney general's office and other agencies.
Both sides issued a short statement Friday saying they had resolved the dispute.