Grand jury recommends Maricopa be dissolved as city

BY CHRISTINE BEDELL AND GRETCHEN WENNER | Wednesday, Jun 08 2011 10:15 AM

Last Updated Wednesday, Jun 08 2011 05:02 PM

cbedell@bakersfield.com, gwenner@bakersfield.com

The Kern County grand jury called for the dissolution of Maricopa city government Wednesday, days after releasing two other reports slamming its police department.

Jurors said the town of 1,154 doesn't have enough commercial activity to generate tax revenue for services, suffers from high debt, has a history of fiscal mismanagement and can't maintain its deteriorating infrastructure, particularly its sewage system.

Last week the grand jury faulted the Maricopa Police Department for a long litany of things including too-aggressive traffic enforcement, an inappropriate relationship with a towing company and failing to account for hundreds of citations and some weapons.

City disincorporation is extremely rare, and would turn over most governance of Maricopa residents to the Kern County Board of Supervisors.

"As distasteful as the idea may be to some citizens of Maricopa, the city no longer has the resources to maintain the status and duties of an incorporated city," the grand jury concluded.

Among the scathing findings were that the city:

* Has about $200,000 in debt. That might not sound like a lot but is for a city with a budget south of $1 million.

Among the biggest chunks of money owed are $61,833.50 to the Kern County Fire Department for fire protection and $101,367.29 to the Local Agency Investment Fund (Proposition 1B) because it borrowed money set aside for streets to pay for "ordinary expenses."

* Owes citizens $24 per parcel for 2009-2010 refuse fees increased in violation of the law.

* Has borrowed money from private individuals to cover payroll and kept cash in an unsecured desk. Randy's Towing owner Randy Winkle told The Californian last week he once gave the city an $8,000 loan, an advance on impound revenue, after a former city administrator said the city couldn't make payroll.

The jury also noted in its latest report that the city attorney hasn't been at council meetings and was rarely consulted by the past part-time city administrator because Maricopa couldn't afford the legal bills.

It said federal officials cut off a contract for federal prison labor because of inappropriate use of that force and that over time, past city administrators have "misled or failed to inform the council of the true financial state of the city."

"The habitual city practice of 'borrowing' from designated purpose funds to meet ordinary city expenses exacerbates the already precarious state of the city's finances and imperils the chances of receiving needed grants." the report says.

It suggests a community service district handle sanitation and sewer services, the Kern County Sheriff's Department provide law enforcement and the California Highway Patrol assume traffic enforcement.

A 2010 report published in the Public Law Journal says 17 cities have disincorporated in California's history, two since 1963. The process is complicated but people can petition for a disincorporation to a county Local Agency Formation Commission, which guides the process, according to the report. If the proposal survives the process, it goes to voters in the city up for disincorporation.

Kern County would be in a position to take over services for Maricopa if that's what the citizens want, said Supervisor Ray Watson, who represents the area.

"I don't think they have the critical mass of population and tax revenue to provide services," Watson said. "But I want to make it clear, whether it disincorporates or not, that's a decision for the voters of the city of Maricopa. I'm not going to advocate one way or the other."

Two Maricopa council members said the city can get its act together.

"We're problem-solvers," said Councilmember Virgil Bell, who called the report "a bit of a shock." "We just all need to get our heads together and see what's best for our town and the taxpayers around here."

Of the debt, he said, "There's no doubt about it -- we need to get that debt paid off."

Councilmember John Crump said Maricopa wouldn't be any better off if it disincorporates and the county provides basic services.

"The county is in a world of hurt, we're in a world of hurt," Crump said. "We're trying to take care of it."

Crump said the former city administrator told him he provided a lot of information to the grand jury that isn't reflected in the report and would have answered a lot of the questions.

"We get these scathing reports. What the heck?" he said "I have no idea what's going on."

Grand jurors met with some city officials, and Crump said he and another councilmember were slated to talk to them as well.

"But they didn't have time for us," he said. The jurors said they would call, but never did, he said.

In the 2009-2010 fiscal year, Maricopa saw Kern County's sharpest drop in sales tax revenues, a report from the state Board of Equalization shows.

Maricopa's share of sales taxes was $20,464, a drop of more than 30 percent from the prior fiscal year, the report shows. In Bakersfield, by comparison, the figure dropped about 15 percent.

But Maricopa has seen an uptick in at least one financial category. Revenue from "special police department services" was $30,575 during the 2009/2010 fiscal year, the city reported to the State Controller's Office, and vehicle code fines brought in $9,540.

Five years ago, those two categories brought in no money at all. Earlier grand jury reports criticized the police department for overzealous traffic enforcement and impounds.

Councilwoman S. Cynthia Tonkin, who was just elected to a second stint on the council after being off for several years, said she'll form an opinion on disincorporation after hearing more from her constituents. She's eager to see the city's finances investigated and straightened out.

"It's up to the people of Maricopa," she said. "If they tell us it's time to disincorporate, I go with their wishes."

Tonkin said she doesn't think public sentiment is on the side of dissolution right now. It's a double-edged sword, she said, because if the city disincorporates and still has debt, Maricopa property owners would have to pay that off through property tax payments.

"We are in a very bad situation," she said. "If we don't do it, we are damned. If we do do it, we are damned."

http://www.bakersfield.com/news/local/x822637706/Grand-jury-recommends-Maricopa-be-dissolved-as-city