REVERE – A $3,600 watch, expensive clothes, office equipment – those are some of the items city officials said they have been told were purchased by Library Director Robert E. Rice Jr. for his own use with taxpayer money prior to being confronted Tuesday by city finance officials about the purchases.”They had been watching him for some time through an ongoing investigation into misappropriation of funds,” City Council President Daniel Rizzo said Wednesday in explaining the circumstances leading to the 43-year-old Gore Road resident’s resignation.Rice as of Wednesday morning had not been criminally charged in connection with the investigation but police Capt. Michael Murphy said police are “in discussions with the (Suffolk) District Attorney’s office” and considering retaining an independent auditor to aid in the probe.”I don’t think anyone else is a suspect at any level,” Murphy added.City officials said the amount of library money Rice spent on himself is in the $10,000 range. They did not specify a period of time in which the 27 year city employee spent money, in Councilor George Rotondo’s words, on items “not consistent with what would be in the library.”City Chief Financial officer George Anzuoni said random checks of city invoices and purchasing orders by the city auditors and purchasing office turned up library purchases “that didn’t seem quite correct.” City finance officials began scrutinizing the purchases starting last Thursday. Rice resigned Tuesday, hours before councilors assembled behind closed doors to hear Ambrosino brief them on the investigation.”These were things with no relevance to the function of the library, but not pornography,” said Mayor Thomas Ambrosino, adding,”It’s the city’s goal now to recover any funds. From the city’s perspective, the damage has been halted.”Ambrosino said library trustee Mark Ferrante is temporarily serving as library director.Rizzo said rumors of financial improprieties at the Beach Street library had been “swirling around” before last week. He said Rice tried to schedule a meeting a week ago with councilors to discuss library spending, including Christmas decoration purchases.