The Colusa County Grand Jury released its annual report Tuesday confirming the City of Colusa’s misuse of public funds, lack of transparency, and code violations while hosting a series of events in the summer of 2021.
The jurors launched their investigation following complaints from multiple members of the public about the city’s handling of four summer events: Country in Colusa music festival; Fourth of July Watermelon Festival; Taco Festival; and Duck Days.
The report largely confirms what the Pioneer Review previously reported that city staff violated numerous policies and procedures; failed to obtain food permits; sold beer and hard liquor at the events without a license and legal ability; lied to state authorities on permits; exceeded their purchasing authority; used credit cards and cash from the General Fund on unauthorized purchases; and spent tens of thousands of dollars with businesses out of the area.
“The Grand Jury finds that the City exhibited negligence and violated multiple City, County, and State policies and procedures, which exposed the City to increased liability,” the report states.
The Grand Jury also confirmed what the Pioneer Review reported last year that city staff specifically targeted certain benefactors for donations to a “Tourism Fund,” which to this day does not exist.
“City employees are not authorized to directly solicit donations from selected businesses or private entities…,” the jurors wrote. “Donation receipts provided in a public records request indicated that the City has received at least five monetary donations totaling $34,000 that were specifically designated for the Colusa Tourism Fund, with the single-largest donation of $15,000 specified for the City’s Fourth of July fireworks show.”
The Grand Jury confirmed the city spent more than $128,000 on the four events, with a net loss to Colusa taxpayers in the amount of $67,000, although a portion of the losses were recouped with another public funding source (CDBG COVID-19 grant), which the City Council in 2020 authorized to be used to help local businesses mitigate pandemic loses by providing them temporary use of sanitizer machines, hand washing stations, outdoor seating, Plexiglass barriers, and other assets for coronavirus prevention, none of which was done.
According to the report, the city was delinquent in completing the CDBG COVID-19 grant application and authorizations, which nearly risked the city losing the funding. The Grand Jury found the City submitted the application for the funding after the pandemic restrictions had been lifted and all the summer events were held. The jurors said it is unclear if any of the local businesses were ever made aware the city purchased outdoor equipment to date, largely because the City lacks transparency and never implemented their promise on the application to have an asset inventory list so that the public can check out the equipment – similar to a library.
The Grand Jury also found the public dissemination of financial information was delayed by the City following the events, and records with the cost breakdowns of the expenditures and revenue generated for each event were not detailed, the report states.
“The Grand Jury finds that the City’s limited staff oversight and lack of accountability resulted in excessive spending and misuse of public funds during the planning and implementation of its summer 2021 events,” the report states.
While the Grand Jury noted that the City has since shown a “good-faith” effort to address some of the issues and tighten its purchasing policies, the jurors noted the agency is “understaffed in multiple departments,” with some staff fulfilling the duties and roles of multiple vacant high-level management positions, which is “hindering the City’s ability to operate effectively and efficiently.”
The Grand Jury made 11 recommendations to the City Council, particularly that the city improve communication and transparency with the public and they follow local, county, and state laws.
More importantly, the jurors recommended the City Manager position be a “sole role” so the employee can dedicate and focus their paid time to fulfilling the duties of that position, shall meet the minimum qualifications as outlined in the job description; and shall receive training where necessary to be able to effectively fulfill all duties of that position.
The Grand Jury recommended the city also fill the vacant Utilities and Public Works Director position as soon as possible.
Jurors also recommended City staff and elected officials participate in routine training and seminars related to public relations, Brown Act, ethics, and other government functions by independent third-party legal services, and the Finance Director conduct training for city staff or new hires on credit-card policy before the employee signs the credit card form and agreement.
The Grand Jury also recommended the City conduct a forensic audit of all City finances within the next two years and then consider a forensic audit on a bi-annual basis.
The jurors recommend that a performance audit also be conducted to “help determine the staffing needs of the City, as well as areas to improve efficiency and effectiveness.
The Colusa City Council must respond to the findings and recommendations pursuant to state law.
The City Manager, Finance Director, and Treasurer are invited to respond, the jurors said. ■
- To read the 2021-2022 Colusa County Grand Jury Report, click here.