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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.

San Benito County Grand Jury • 2024-2025

San Benito County Corrections, Detention Facilities/Sheriff’s Department Corrections and Rehabilitation Facilities

Published: June 09, 2025 41 pages
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Findings 6 findings

F1 Page 11
The original text of the 1977 measure is open to many interpretations. The current practice of continuing to collect tax revenue is not reflected in the intention of the measure from 1977. This is an agreement that identifies terms and conditions for the construction of facilities and a payback plan. It’s a loan from USBR to the SBCWD, and essentially, the voter-approved measure allows for the payback of the loan plus ongoing maintenance.
F2 Page 11
Stating “40-year repayment period” implies a sunset of part of the tax.
F3 Page 11
Attorneys hired by SBCWD interpreted the language on the 1977 ballot as having no end date.
F4 Page 11
SBCWD claims tax revenue currently provides for Operations and Maintenance (O&M) costs.
F5 Page 12
SBCWD accounting methods do not capture and bill the customers for O&M expenses.
F6 Page 12
The original $19,900,000 was paid off in 1995. The USBR said that if the loan was paid off early, there would be a discount down to $19,200,000. The funds to pay off the loan were borrowed through the district with approval from the SBCWD Board of Directors, and the secondary loan was paid off around 2006-2007. Although enough money is collected each tax year to pay off these loans, SBCWD continues to make payments that are due to increase in 2026. The bond measure on the 1977 ballot did not authorize additional loans.

Recommendations 8