Wednesday, Jul 20 2011 11:57 AM
By Carin Enovijas, News Editor
The Tehachapi-Cummings County Water District has issued a response to the Kern County Grand Jury report issued after an investigation into the district’s past usage of State Water Payment (SWP) fund for general expenses.
The SWP fund is restricted to the purchase of SWP water and credits from property taxes levied by the district. Any surplus funds remaining after contracted SWP payments are made should have been held in reserve and applied towards a reduction of the subsequent year’s property taxes.
According to the Grand Jury report, the district’s general manager, John Martin, identified and corrected what the board previously described as an “accounting error” when he took over the position in 2009. The “corrective actions placed financial strain on the district resulting in layoffs of district personnel,” according to the report.
Martin estimated that the correction cost the district approximately $1.5 million annually in lost tax revenues.
“This district has received the Grand Jury report and we agree with its findings,” states Martin’s official response. “As stated in the report, corrective action on this issue was already taken by the Board of Directors and management in 2009 and the district’s practices since that time have been in full compliance with statutory law and the California Constitution.
Martin goes on to say that the district has been “responsive to the citizen who brought the compliant and to the Grand Jury by providing all information… we did not conceal any information from anybody.”
The district’s response to the Grand Jury focuses mainly on recommendations that the board develop a program to strengthen its financial reserves, and re-evaluate its policies regarding the use of legal counsel.
Martin said the board has adopted a financial reserves policy, which “sets forth a reasonable approach to accumulate reserves over time.”
“Progress will be slow at first, as the district still has some debt maturing in 2014 and 2016 after which time progress will improve,”
Martin explains in the letter. “Management and the board will also consider future adjustments to rates to keep the funding plan on track.”
In response to the Grand Jury’s recommendation that the board review policy and consider increasing use of legal counsel, Martin said management will recommend a policy for the board’s consideration within the next 90 days.
“Current management has utilized legal counsel more, as our legal bills will attest,” Martin said. “Legal counsel reviews all agendas, draft resolutions and board meeting materials prior to each board meeting.
Legal counsel is often consulted in regards to the district’s watermaster duties for the three adjudicated groundwater basins in the district.”
Finally, the Grand Jury urged the district to adopt a program to educate and inform area residents of the functions and benefits of the district.
“This is a common problem for special districts,” Martin said.
While the district is an active participant in a variety of municipal councils and inter-organizational committees, Martin said there is still opportunity to improve its outreach efforts.
“Over the next year the district’s web page will be completely revamped,” Martin responded. “It will be more user-friendly. We will post all of our watermaster documents, governing documents, water rates, meeting schedules, agenda, etc, to keep the community informed of our services and activities.”
http://www.tehachapinews.com/news/local/x1804571491/Water-district-responds-to-Grand-Jury-report
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