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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.
Butte County Grand Jury
• 2012-2013
Water: Butte County’s Vital Resource
⚠️ 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 19 findings
F1
Page 90
The City of Biggs traditionally balances its General Operating Budget by supplementing its revenue with monies from the Electric Utilities Fund.
F2
Page 90
Biggs wastewater treatment facility is antiquated and will need to be upgraded in the near future.
F3
Page 90
Many roads need maintenance and repair. Chico
F4
Page 90
Primary revenue sources of Chico are taxes which have been reduced by the slowing economy.
F5
Page 90
The City of Chico had a significant turnover in senior management in 2012-13 and is in the process of restructuring the city government.
F6
Page 90
The City of Chico was slow to respond to the loss of RDA funding and of other funding sources.
F7
Page 90
City management provided the Grand Jury with some financial data that was outdated, incomplete and misleading. 66
F8
Page 91
Shortfalls in operating revenues are being covered by transfers from non-general revenue funds. Some of these funds continue to carry significant negative balances. Gridley
F9
Page 91
Gridley traditionally balances its General Operating Budget by supplementing its revenue with monies from the Electric Utilities Fund.
F10
Page 91
Gridley strengthened its internal controls after an embezzlement discovered in 2010. Oroville
F11
Page 91
The City of Oroville, under contract with DWR, is the Fund Administrator for the Project Supplemental Benefits Fund and will be disbursing grants to the community to stimulate recreation, tourism and economic development.
F12
Page 91
The City Council’s adoption of a new Facility and Park Fee Waiver Policy will bring consistency to this process.
F13
Page 91
Although the City of Oroville has a shortfall in its annual operating expenditures as compared to its revenues, City management is transparent about their steps to correct the situation.
F14
Page 91
The City of Oroville balanced its operating budget by using its Contingency Fund. Paradise
F15
Page 91
The Town of Paradise is primarily a residential community with minimal retail and commercial businesses. Therefore, Paradise residents often work and shop elsewhere, leaving their sales tax dollars in other jurisdictions.
F16
Page 91
The Town of Paradise has experienced revenue challenges for many years, which impact town services.
F17
Page 91
The Town of Paradise carefully planned for the transition to a new town manager.
F18
Page 91
The Town of Paradise’s lack of a sewer system has been a barrier in attracting significant new retail and commercial businesses. 67
F19
Page 92
A sewer system for the residential districts is impractical due to the Town of Paradise’s topography.
Recommendations 6
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R1Page 92The City of Biggs should explore all funding possibilities for upgrading its wastewater treatment facility and road maintenance. CHICO
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R2Page 92The City of Chico should become more transparent in its financial condition, reporting and budgeting process.
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R3Page 92The City of Chico should continue the process of restructuring the city government.
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R4Page 92The City of Chico should develop a viable financial plan to replenish funds with negative balances. GRIDLEY None. OROVILLE
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R5Page 92The City of Oroville should develop a sustainable financial plan to replenish their contingency fund. PARADISE
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R6Page 92The Town of Paradise should explore all options for a sewage system in its business districts and adopt a plan to resolve this problem.