Sacramento County Grand Jury • 2025-2026

Rancho Murieta Community Services District: Still a Work in Progress

Published: June 24, 2026 15 pages
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Findings and Recommendations 12 findings

F1
The Grand Jury finds the District operated an accounting system without standardized procedures that did not meet California’s legal requirements for public financial reporting, which as a result, allowed multiple legally required financial audits to become overdue. (R1)
Related Recommendations (1)
R1
The Grand Jury recommends the Board require staff to complete updated accounting procedure manuals reflecting current software systems and processes, with General Manager approval, no later than December 31, 2026. (F1)
F2
The Grand Jury finds as of May 2026, the District has deferred the FY 2022-23, FY 2023-24 and FY 2024–25 audits, and will be deferring the FY 2025–26 audits, extending a pattern of delinquent financial reporting that began in FY 2020–21, which is a violation of state law. (R2)
No recommendations for this finding
F3
The Grand Jury finds there is no evidence the District fully remediated the material weaknesses and significant deficiencies identified in the FY 2019–20 audit following its transition to the current accounting software, thereby risking the continuance of a pattern of unqualified audits. (R3)
No recommendations for this finding
F4
The Grand Jury acknowledges the hiring of a qualified Director of Finance and Administration enabled the District to make great strides towards closing the books on a series of long overdue audits as well as to establish effective accounting processes.
No recommendations for this finding
F5
The Grand Jury finds the District continues to suffer from the impact of high upper management staff turnover to the detriment of its effective operation. The Grand Jury further finds, however, the recent retention of HRtoGO Outsourcing and Consulting Service to assist in establishing and implementing proper human resources procedures, may improve the handling of personnel matters and potentially reduce future employment litigation as well as prevention of high staff turnover.
No recommendations for this finding
F6
The Grand Jury finds the Board did not initiate the process of hiring a General Manager for ten months, and instead appointed an interim general manager who lacked the qualifications and experience to run a public utility district, impeding the District’s ability to operate effectively. (R6)
Related Recommendations (1)
R6
The Grand Jury recommends the Board adhere to the schedule outlined by its recruitment agency for the hiring of a new General Manager who possesses the qualifications and experience to run this special district, and ensure the position is filled no later than September 30, 2026. (F6)
F7
The Grand Jury finds the District’s ordinance regarding conflicts of interest is not updated, resulting in confusion over who must complete the Form 700s. (R7)
Related Recommendations (1)
R7
The Grand Jury recommends the District Board update the District’s Conflict of Interest Code by September 30, 2026 to accurately reflect those positions for which a Form 700 is required. (F7)
F8
The Grand Jury finds a Board member did not recuse, but in fact voted on the water moratorium issue despite a possible financial interest in the outcome of the vote, thereby creating at least the perception of a financial conflict of interest which could lead to mistrust by the residents. (R8)
Related Recommendations (2)
R8a
The Grand Jury recommends that by September 30, 2026 the Board implement procedures to verify that all required filers of Statements of Economic Interest timely file their Form 700’s. (F8)
R8b
The Grand Jury recommends the Board establish a process to ensure Board members and staff are adequately trained on their ethical obligations so they can determine whether recusal from participating in any discussion in which the Board member or staff may have an appearance of possible impropriety or actual conflict of interest in the agenda matter being discussed is appropriate. (F8)
F9
The Grand Jury finds required Form 700s have not all been filed and are not readily accessible to the public, making it difficult to determine actual or potential financial conflicts of interest. (R9)
Related Recommendations (1)
R9
The Grand Jury recommends the Board provide easy public access to the filed Form 700’s by September 30, 2026, including through the Rancho Murieta website to facilitate public access. (F9)
F10
The Grand Jury finds there is no apparent procedure to ensure Board members and relevant District staff receive statutorily-required ethics and fiscal training in a timely manner, which has resulted in weakness in its governance. (R10)
Related Recommendations (1)
R10
The Grand Jury recommends the Board establish a formal procedure to comply with statutorily-required ethics and fiscal training, such as for elected officials and personnel by December 31, 2026. (F10)
F11
The Grand Jury finds that although the District is permitted to charge the Rancho Murieta Country Club, a private club, for the cost of delivering reclaimed water, the District has not done so for over 37 years, thereby depriving the District of a source of revenue. (R11)
Related Recommendations (1)
R11
The Grand Jury recommends the Board direct staff to determine the cost of delivering reclaimed water to the Country Club and report to the Board in a Discussion item by September 30, 2026 the lost revenue from not charging that cost to the private club. (F11)
F12
The Grand Jury finds the schedule for repayment of the District’s loan to the Rancho Murieta Country Club does not fully disclose the amount of interest the Country Club is obligated to pay under the loan agreement due to changes in the interest rate during the repayment period. (R12)
Related Recommendations (1)
R12
The Grand Jury recommends the Board direct staff report to the Board by September 30, 2026 the total interest owed by the Country Club under the loan agreement. (F12)

Additional Recommendations 2

These recommendations are not explicitly linked to specific findings.

In the News 1

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