BLACK HAWK, Colo. -- The Colorado Bureau of Investigation and Jefferson County District Attorney's Office have launched inquiries into the city of Black Hawk and the spending of city money, including funds specifically designated for historic preservation.

The Legislative Audit Committee will also consider in December whether to do an audit on how Black Hawk used that money.

Both actions come on the heels of a CALL7 Investigation that showed thousands of dollars spent on travel to Las Vegas for city council members, including spouses, as well as gifts for the council. The investigation also showed millions of dollars in historic preservation funds going to properties owned by the mayor of Black Hawk or members of the city council.

CALL7 Investigators also found historic preservation money used to buy granite countertops, entertainment centers and even a dog door, among other questionable items.

The money from the Historic and Architechtural Review Commission, or HARC, comes from the tax on limited-stakes gaming which Colorado voters approved in the early 90s.

The idea was to use a percentage of the gaming tax to help rebuild and preserve the three historic towns where gambling is legal in Colorado.

Black Hawk, Cripple Creek and Central City were given control over the use of HARC funds in their cities and the money is distributed to each based on the amount of gaming taxes collected.

Black Hawk generates the most gaming revenue and therefore receives the lion's share of HARC funds.

In April, CALL7 Investigator Tony Kovaleski asked Black Hawk Mayor David Spellman and City Manager Richard Lessner for an on-camera interview to explain the city's use of HARC funds.

Both refused, so Kovaleski approached Spellman during a break in a City Council meeting in April and again when the meeting was over. Spellman refused to answer questions on-camera, citing city policy stating all questions had to be in writing.

Following the CALL7 story, the CBI submitted several requests for the same documents uncovered by KMGH.

Despite that action by the CBI, Black Hawk officials found a new, unprecedented way to spend money set aside to preserve history.

In May, the city council approved a bill that allowed HARC funds to be used for "all funding of the Public Works Department" and "all funding of the city of Black Hawk fire department."

Together, the two departments cost more than $9 million dollars annually, according to the 2008 budget posted on Black Hawk's website.

The council bill passed in May said both agencies are necessary for the historic preservation of the city.

State Rep. Al White does not agree.

"I think they have gold-plated every outhouse on the hillside and there's no place else to look to expend historic dollars in a reasonable fashion," White told 7NEWS. "They're dedicating all of these funds for the operation of these two departments and I don't think there's a logical connection between those departments and historic preservation."

As a result, White sent a letter to the Legislative Audit Committee asking for a thorough examination of Black Hawk's spending.

The audit committee has scheduled to take up White's request on Dec. 9.

"I'm beyond frustrated with the situation. [Black Hawk] is almost laughing down their sleeve at me, it would seem, and perhaps at the citizens of the state of Colorado, who are providing the funding," said White.

In September, 7NEWS again asked for an on-camera interview with city officials in Black Hawk, this time to explain the unprecedented new spending measure.

Again, 7NEWS was denied, so Kovaleski returned to the Black Hawk City Council.

Outside the council chamber, Black Hawk Police Chief Stephen Cole handed Kovaleski a copy of city laws highlighting ways that Kovaleski could be arrested.

Kovaleski told the police chief, "I am threatened by this. I take this as intimidating me from doing my job. It wasn't handed out to everybody, it was given to me."

Cole told Kovaleski it was not meant as intimidation, but information based on the events that occurred in April. Cole said, "An individual, whether a council person or not, has the same rights."

Kovaleski disagreed and said, "A public official has a responsibility to answer to issues different than a private individual."

Despite the threat of arrest, Kovaleski approached Spellman during a break in the council meeting.

"I would like to talk to you about a public issue," Kovaleski said.

Spellman responded, "You know our policy. Submit your questions in writing."

Black Hawk's police chief quickly stepped in.

"[Spellman is] spending state money and we want to ask him about state money," Kovaleski told the chief.

"He's said he's not going to talk to you about that," the chief of police said.

"So he wants no accountability?" Kovaleski asked Cole. "Are you threatening to arrest me?"

"I'm telling you, if you continue to harass him in violation of city ordinance, you're going to put me in a position where I have no choice. I hope that does not occur," the police chief said.

Kovaleski was not arrested and per the request of Black Hawk city officials, he had written questions in his hand for the city manager and attempted to hand the same copy to the mayor.

Neither took the questions.