A review of Marshall city government by staffers from the Texas Comptroller's Office has produced 44 recommendations that will improve the city's efficiency and save or generate revenues of $4.2 million, according to the report, send to the city late last month.

A few recommendations suggest the city should obey state law.

City commissioners invited state government employees to review city practices, with an eye to improvement, said City Manager Frank Johnson.

Staffers spent a week at city hall in October 2004, interviewed officials and employees and reviewed documents.

As far as state law is concerned, it requires city governments to file current and future budgets with the Harrison County clerk, the report said, indicating the city has not done so.

Another recommendation addresses the hike in the 1.5 cent sales tax voters approved in 1991.

City officials needed sales tax money to fund the Marshall Economic Development Corporation (MEDCO). So city officials pledged to lower property taxes in return for a one-half cent increase in the sales tax.

City officials should have then established a municipal sales tax debt service fund, the report said, meaning if revenue collected from the additional tax exceeds the tax amount required to reduce property taxes, the excess must be deposited in an account called the "municipal sales tax debt service fund."

The money can be spent for general fund items, the report said, adding that Marshall has made $179,102 from the excess in the last four years.