LEBANON — A grand jury will hear testimony next week in the case against top Lebanon staff members who took questionable early retirement buyouts.

        An investigator for Special Prosecutor Patrick Hanley has served subpoenas to Mayor James Mills, Councilman James Reinhard and former Councilman Joe McKenzie, the three said. They're each scheduled to appear Wednesday.

        The most likely targets of the grand jury investigation are those who received the buyouts. Warren County Prosecutor Tim Oliver made reference to possible wrongdoing by “former employees of the city” in his March request for a special prosecutor.

        The city paid $206,302 into the retirement funds of former City Attorney Bill Duning, $110,565 for City Auditor Debbie Biggs and $169,549 for Assistant Electric Department Director Bob Newton.

        The buyouts were meant only for electric department employees and legislation for the money was slipped past council members in late 1999 without their knowledge, they said.

        After the payments came to light in early 2000, the Public Employees Retirement System returned the money paid for Mr. Duning and Mrs. Biggs but refused to return Mr. Newton's.

        The grand jury, which hears the prosecution's side, is likely to issue indictments.

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