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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.
El Dorado County Grand Jury
• 2003-2004
South Tahoe Redevelopment Agency
⚠️ 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 5 findings
F1
Page 40
There was poor oversight of the activities and inadequate financial management of the Park Avenue project. This was due to the same people serving on the city council and on the STRDA. Also there was high turnover of these elected official and their supporting city staff. 2003/2004 El Dorado County Grand Jury Investigations & Reports 30
F2
Page 41
The financial reporting system in use in the City of South Lake Tahoe during the years in question (1999-2002) was difficult to understand. There was a lack of notification and/or control in certain situations when overspending occurred. The City Council did not receive cogent, on-going spending updates as each year progressed.
F3
Page 41
The financial documents that the City Council received were difficult to understand and were not presented on a regular basis. These non-user friendly financial documents contributed to a lack of financial control over the project by the city council.
F4
Page 41
The same auditor was used by the city for several years.
F5
Page 41
The STRDA audit report dated 9/30/01 clearly identified a large deficit in the their fund. Nevertheless, no action was taken by staff or elected officials to memorialize the deficit in a loan agreement as required by the Cooperation Agreement.
Recommendations 12
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R1Page 40Future STRDA Boards must be independent of the City Council, with no more then one member of the City Council on the board. However the STRDA board must be accountable and report to the City Council
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R2Page 40The STRDA must be vigilant in monitoring actual expenditures against budgeted amounts as the fiscal year progresses. STRDA must take prompt and decisive action when negative variances are identified. STRDA shall continue to provide the monthly budget update information to the City Council.
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R3Page 40The City of South Lake Tahoe must strictly adhere to the financial controls implemented by the City Manager and City Council as outlined in the 11/16/03 staff report.
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R4Page 40The City of South Lake Tahoe and STRDA must change independent outside financial auditors on a regular basis to help ensure unbiased reviews of the city’s and STRDA’s financial conditions.
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R5Page 40When STRDA identifies deficit conditions, the circumstances need to be promptly documented in a manner consistent with the Cooperation Agreement between the City of South Lake Tahoe and STRDA. The South Lake Tahoe City Council/STRDA Board of Directors, is required by Penal Code 933 and 933.05 to respond to all Findings and Recommendations contained within this report. Note: Respondent does not need to respond to the attached report. See page vi for the proper method for responding to Findings and Recommendations. 2003/2004 El Dorado County Grand Jury Investigations & Reports 31 Investigative Report
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R6Page 41The South Tahoe Redevelopment Agency consolidated “Statements of Indebtedness” for tax years 2000/2001, 2001/2002 and 2002/2003. These reports are filed annually with El Dorado County. 2003/2004 El Dorado County Grand Jury Investigations & Reports 44
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R7Page 41The South Tahoe Redevelopment Agency “Financial Transactions Reports” for FY 00/01, 01/02 and 02/03. These reports are filed annually with the State Controller’s office.
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R8Page 41Memo from Redevelopment Manager Gene Palazzo to City Manager David Jinkens, dated March 8, 2004 entitled, “Loan and repayment Agreement between South Tahoe Redevelopment Agency and the City of South Lake Tahoe.”
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R9Page 41Examples of reports regarding the on-going financial condition of the City of South Lake Tahoe now being provided to City Council members on a monthly basis.
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R10Page 41City of South Lake Tahoe budgets for fiscal years 99/00 through 02/03 (not included in the addenda due to their size).
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R11Page 41All City Council and Redevelopment Agency meeting agendas and minutes from October 1999 to March 2004.
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R12Page 41The Redevelopment Agency’s five year Implementation Plan for the period January 2000 to December 2004 (not included in the addenda due to its size). 2003/2004 El Dorado County Grand Jury Investigations & Reports 45 Addenda