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ANDALISIA, Ala. (NBC) -- The Opp Police Department began looking into the matter at the request of the District Attorney and uncovered a massive theft of public funds.

The investigation found that Hixon used the money to pay the salary, approximately $20,000, of Charlie Calloway.

Calloway, an employee of HCH Development, is said to have "provided no services to the Town of River Falls for this salary."

Hixon was also said to be associated with the company, and listed as an employee.

From October 2009 to present, Hixon used public funds totaling more than $3,000 to pay electric bills at Conecuh Feed and Bait, owned by Richard Moss, as well as more than $10,000 on electricity at the house rented where she lived with Moss.

The investigation also revealed that Moss was earning a salary of $450 per week as a "nighttime policeman" for River Falls, though he had no such official capacity with the town.

In June of 2010, Moss's Coffee County-issued police vehicle was involved in a wreck, which Moss reported to the County Sheriff as damaged by the "garbage man" in River Falls.

While no police report existed documenting the wreck, Mayor Hixon issued a check to the Coffee County Commission for more than $1,7000 to pay for the damages.

The mayor kept vehicles not owned by the town in working order by paying for repair service with town funds to the total of approximately $800.

Authorities say the mayor also wrote checks to town citizens who would cash and then return to her the money.

The amount from those fraudulent transactions totaled more than $20,000.

Even the mayor's daughter was mentioned in the affidavit, said to have been illegally hired to handle the town's water works billing.

The affidavit says all the listed allegations against Mayor Hixon were supported by facts including bank records and a "concerned citizen" wearing a hidden audio recording device.

The person met with the mayor, who incriminated herself.

The mayor then paid the citizen $525 to "keep him quiet".

"It's a hard pill to swallow," says Chandler.

Some locals don't believe the story ends there.

They think there could be more evidence of misappropriated funds.

Officials say the investigation is ongoing.

"We're going to continue to look at that and of course along the way if we find more evidence of other people involved then we will pursue those arrests and prosecutions as well," says Merrell.

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