📋

Extracted from Consolidated Report

This investigation was originally published as part of a larger consolidated report containing multiple investigations. View the consolidated PDF for the complete document.

Nevada County Grand Jury • 2008-2009

Nevada City

Published: June 15, 2009 11 pages

View PDF View Full Original

⚠️ Translation Notice: This content has been automatically translated. The original English text is the official version. Translation may contain errors.

⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.

Findings 18 findings

There has been a “Finance Committee” in Nevada City government in one form or another for at least 15 years.

On 2/25/09 the City Council of Nevada City voted unanimously to prepare Resolution No. 2009-09, consenting to the dissolution of the Finance and Administration Committee.

As a result of the City Council’s dissolution action on 2/25/09 (above), the City Treasurer tendered his resignation to the City Council on 3/6/09, citing an inability to make further contributions without the Finance Committee.

On 3/11/09 the City Council of Nevada City voted unanimously to pass and adopt Resolution 2009-09, abolishing its Finance and Administration Committee, which was made up of the City Treasurer, three appointed members of the public, and two City Council members.

The Jury was not provided with clear and/or compelling rationale to explain the City Council’s action to abolish its Finance Committee.

The Jury was told that the City Council, City Manager and City Financial Officer will fill the void left by the Finance Committee.

In the 2006-2007 Grand Jury Report entitled NEVADA CITY GOVERNMENT: Asleep at the Wheel, which was generally critical of overall city management, the Jury made the following recommendation under the section titled “Finances”: “The City Council should exercise diligent oversight of the City’s financial resources and take steps to assure its members understand the relevant processes and are given timely periodic reports.”

Both the City Manager and Mayor responded to the above Recommendation with the following statement: “The City agrees and is in the process of implementing. Diligent oversight of the financial resources is being provided by the Council directly through two finance-experienced Council members serving full-time on the Finance Committee and Finance Manager and City Treasurer reports to the City Council, and additionally through the Finance Committee’s citizen expertise and detailed oversight and reporting back to City Council.”

The 2007-2008 Grand Jury Report entitled Nevada City Government, which was a follow-up to the previous year’s Report, applauded the City in finding that, “Detailed oversight of City finances is provided by the Finance Committee, consisting of the Mayor, one other Council member, the elected City Treasurer, and three citizens appointed by the Mayor.”

F10

Although the Mayor has the authority to establish or abolish any standing or Ad Hoc Committee, the Finance Committee was dissolved by action of the full City Council. Nevada City’s Financial Oversight Committee Grand Jury Reports 2008-09

F11

The Mayor has the discretion to name the Chair and appoint members to the City’s various committees.

F12

The Finance Committee had no written charter or mission statement from the City Council. It was clear and broadly recognized that the Committee could make

F13

The City Treasurer has no written description of duties or responsibilities other than the generic description that exists in State Code.

F14

Persons interviewed by the Jury had diverse opinions regarding the role and responsibilities of the City Treasurer.

F15

For at least the past several years, Finance Committee meetings were publicly noticed and open to the public, complying with the Brown Act and the Committee was transparent in its business.

F16

Other than the City Treasurer, members of the Finance Committee were not paid.

F17

City staff time to prepare information requested by the Finance Committee may have added to the workload, but did not significantly add cost.

F18

In the past several years the Finance Committee spent time reviewing City and Department budgets as well as other aspects of City finances. The Committee also brought important financial matters, some of them previously unknown, to the attention of the City Council and others. Conclusions

Recommendations 3

R1

Consider a reconstituted oversight group, with written and well defined duties and parameters, made up of members with special financial skills and available time, to assist the City Council in its financial oversight responsibilities, while also gaining the benefits of greater transparency and additional citizen involvement.
R2

Prepare a written description of duties and responsibilities for the City Treasurer.
R3

Review its financial oversight responsibilities, realistically recognizing how much time it (the Council as a body) has to devote to researching, studying, analyzing, and deliberating on complex financial matters, and what level of individual expertise and experience Council members have to contribute to that effort. Following that evaluation, devise and implement a system by which it will effectively fulfill its financial oversight responsibilities. Required Response The City Council of Nevada City October 16, 2009 Nevada City’s Financial Oversight Committee Grand Jury Reports 2008-09

Conclusions 10

CL1 Page 4

The Grand Jury believes that largely because of public meeting laws and their own time restrictions, it is impractical for the City Council – as a body – to research, analyze, deliberate and allow for public comment on the complex financial matters faced by City government, without assistance.
CL2 Page 4

Proper financial oversight requires unique expertise and generous commitment of time for the necessary detailed research and analysis in today’s economy and complex financial world.
CL3 Page 4

Proper and effective financial oversight from the City Council can best be accomplished through the assistance of a third party group, in addition to that coming from City staff.
CL4 Page 3

Apparently the current Mayor and City Council feel that the Finance Committee is no longer necessary, despite endorsement by two previous councils and the previous City Manager.
CL5 Page 3

The City Council was well within its authority to abolish the Finance Committee.
CL6 Page 3

The City Council is responsible to provide a written description of duties, responsibilities, limitations and expectations for all its various Committees and Chairpersons in order for them to be effective.
CL7 Page 3

The Finance Committee provided a valuable oversight function between the City Council and Staff, in addition to providing citizen involvement and transparency.
CL8 Page 3

The services provided by a credible and efficient Finance Committee can be a valuable asset to City government and its citizens.
CL9 Page 3

Conceptually, a Finance Committee has the unique expertise, time and ability to focus Nevada City’s Financial Oversight Committee Grand Jury Reports 2008-09 Page 3 greater energy and attention to complex financial matters than does the City Council as a body.
CL10 Page 4

It may appear that a Finance Committee could cause additional workload for City staff due to the necessity to provide requested data and information for the Finance Committee to research and analyze; however, this oversight effort should be taken with or without a Finance Committee.

No Responses Found 1

Government entities assigned to respond to this report. No response documents have been linked in our database.

Nevada City City