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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.

Calaveras County Grand Jury • 2018-2019

Jenny Lind Veterans Memorial District

11 pages

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⚠️ 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 4 findings

F1 Page 74

The JLVMD obtained a bank loan which was noncompliant with the MVC in two ways: a) On April 29, 2016, JLVMD obtained a private construction loan. b) The construction loan was paid off January 28, 2019, when the balance converted to a ten- year Commercial Real Estate Term Loan.

F2 Page 74

The JLVMD acted on its own authority to obtain bank loans without the involvement of the BOS or the Calaveras County Auditor/Controller.

F3 Page 74

The JLVMD passed Resolution 2013-09 to borrow money and encumber property, which is outside the authority granted under the MVC.

F4 Page 74

With an outstanding loan on the property, the JLVMD property is at risk of loan default.

Recommendations 3

R1
Page 75

a) The JLVMD should inform the BOS of the bank loan on or before October 1, 2019. b) The BOS should consider a partnership with the JLVMD to pay off the noncompliant loan and create a more favorable long-term loan, as may be permitted by law. A joint meeting should be scheduled to explore solutions on or before October 1, 2019.
R2
Page 75

The JLVMD needs to strictly adhere to the MVC in its entirety.
R4
Page 75

On or before October 1, 2019, the JLVMD must consider the following solutions to retire the loan: a) The District can work through the BOS to go into bond indebtedness. b) The District can work through the BOS to seek a special tax. c) The District can work through the BOS to combine with the County as detailed in MVC Article 2, §1193.