City Auditor, Jorge Oseguera  says a recent poll of city workers found many knew of fraud and abuse, but did not report it.

OSEGUERA: "Some of the reasons why employees did not report their concerns in the past included not knowing who to report to and fear of retaliation.  Over 70 percent of employees surveyed said that they would or possibly would use a hotline to report fraud, waste and abuse."

Oseguera says if Sacramento follows the trend set by California's eight-largest cities, fraud losses could be as much as $30 million.

Council members said they could not fund the position required to handle whistleblower cases, but they did approve the creation of a framework for a whistleblower system.