Saturday, June 1, 2013

(Fresno Co) Grand jury: Del Rey utility district in financial hot water

By Pablo Lopez, The Fresno Bee -

Del Rey Community Service District has been operating at a financial loss for 17 of the past 18 years and board members can't account for missing money, a Fresno County grand jury report says.

The eight-page report, released this week, criticizes board members for not conducting themselves properly at public meetings and for failing to perform their duties in accordance with the law.

It was the second time in five years the county's civilian grand jury has investigated improper expenditures by the district, which was established in 1963 to provide water, sewer, solid waste and other service to 1,600 residents south of Sanger.

According to the report, the district's reserve had $687,942 in December 1995. A June 2007 audit showed a reserve balance of $284,844. But as of July last year, the reserve had dropped to $94,967.

"The findings of the current grand jury are in total agreement with those of the previous grand jury," the report said. "Records needed to identify how the funds were spent are non-existent."

In the report, jurors ask the Fresno County Board of Supervisors and the Local Agency Formation Commission, known as LAFCO, to have better oversight of the Del Rey district. Jurors also would like LAFCO to "take a more aggressive stance in recommending a merger of this district" with another, financially stable district.

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