The indictment filed last week arose from an investigation into discrepancies found in city accounts in late December. Kelley resigned Feb. 3 and was arrested Feb. 25.
Court records only say the missing funds totaled between $1,500 and $20,000. Abuse of official capacity is a felony punishable by up to two years in state jail.
Kelley had been Canyon fire chief since 2002.
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