Monday, May 25, 2015

[Santa Barbara County] Guadalupe City Council to respond to grand jury recommendation to disincorporate


The Guadalupe City Council will defend itself Tuesday night against a recommendation by a Santa Barbara County grand jury that the city should disincorporate due to numerous financial issues.
The grand jury presented 13 findings in a report titled “Guadalupe Shell Game Must End,” which led them to make the recommendation for Guadalupe to disincorporate. Of the 13, the council disagreed with eight, partially disagreed with three and agreed with two.
“The recommendation will not be implemented because it is not warranted, and it is not reasonable,” the council wrote in its official response.
Examples of the grand jury’s findings include the city’s inability to generate enough General Fund revenue to pay for expenses, inability to build up a reserve fund for emergencies and infrastructure repair and a history of inappropriate transfers of funds to cover its debts.
One of the biggest financial obstacles for the city to overcome is a negative General Fund balance of more than $300,000. But the council says it has a plan.
It will borrow from its own Water Operating Fund and Lighting District to cover the deficit, a loan, with interest, which will take a predicted 10 years to pay back.
In November 2014, Guadalupe voters passed three tax measures that will create $325,000 in additional revenue, according to the council. One of the measures included a .25-percent sales tax increase.
The city also expects $100,000 in new revenue from property and sales tax and business permits associated with 800-home Pasadera development, which broke ground in March.
The city also raised sewer rates by 30 percent and garbage rates by 19 percent to help cover deficits. 
The council hopes these extensive efforts will be enough to satisfy the grand jury. Its report also mentions safety concerns as a reason Guadalupe should not disincorporate.
“This is not just a matter of small town pride,” the council wrote. “It also has to do with public safety. Guadalupe residents want to make sure that police and fire protection are provided from within city limits.”
At its Tuesday meeting, the council will also accept the results of an audit conducted by Glenn Burdette Attest Corporation for the 2013-14 fiscal year. The auditors “raise substantial doubt about the city’s ability to continue as a goring concern.”
But the council insists its efforts to cover the city's deficits, including the loan from the Water Fund and the Lighting District, will be enough to present a balanced budget for 2015-16.
The meeting will take place at 6 p.m. in the council chambers of City Hall, 918 Obsipo St., Guadalupe.
May 25, 2015
Lompoc Record
By Abby Hamblin

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