Score: -4 (1/3/5)

Riverside County Grand Jury • 2021-2022

City in Peril Blythe is Dying

Published: June 15, 2021 12 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 and Recommendations 9 findings

Blythe’s completely isolated location in the middle of a desert stifles its growth and makes it unattractive to new sources of badly needed investment.

Related Recommendations (1)

Blythe should aggressively explore all new potential sources of revenue including government and non-profit organization grants. The cost for this important function could be revenue neutral through the new grants obtained. It should be included in the collateral duties of the City Clerk or Finance Director by December 31, 2022. (F1, F2, F3, F4, F5) Required Responses: Blythe City Council (F1, F2, F3, F4, F5, F6, F7, F8, F9) (R1, R2)

There is no coordinated effort searching for overlooked county, state, or federal grant opportunities.

Related Recommendations (1)

Blythe has been dealing with deficits to its Operating Fund for nine years and must increase its sustainable revenue base to maintain minimum levels of City services.

Related Recommendations (1)

One-time windfalls, such as funding from county, state and federal programs, will benefit Blythe in the short run but will not solve long-term issues.

Related Recommendations (1)

Serious questions continue to arise as to whether Blythe can remain as a “going concern.”

Related Recommendations (1)

Blythe officials have not yet produced a strategic long-term financial plan for the City’s survival.

Related Recommendations (2)

The Grand Jury concurs with many of the State Auditor’s recommendations, especially the need that a permanent City Manager be hired. The current Interim City Manager splits her time as City Clerk and has performed both positions admirably under difficult conditions. However, Blythe is facing an existential threat that screams for a full-time permanent City Manager with proven turnaround skills and experience. The recruitment effort should be completed no later than December 31, 2022 in order to allow time for creation of a new strategic plan prior to the Fiscal Year 2023-2024 budget process. Expected cost $200k - $300k. (F6) (F8)

Internal biases and civic pride have created challenges to accepting external input and ideas.

Related Recommendations (1)

In the opinion of the Grand Jury a great need exists for a visionary leader with proven experience dealing with distressed cities to guide Blythe away from potential insolvency.

Related Recommendations (2)

The Grand Jury did not find that disincorporation is an option that should be considered part of any strategic plan for the foreseeable future. 10

Related Recommendations (1)

Agency Responses 1

Government agencies' official responses to this report's findings and recommendations. Click on a response to see the structured breakdown.

City of Blythe response to the 2021-2022 Grand Jury Report: 2021-2022 Grand Jury Report: City in Per

June 07, 2022 • 13 pages • 9 responses • Score: -4 (+1, 3, -5) View Details ▾

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9 responses to findings and recommendations

Blythe’s completely isolated location in the middle of a desert stifles its growth and makes it unattractive to new sources of badly needed investment.

Response: Disagree Partially Score: 0

The City partially agrees with this finding. The distance from Blythe and the rest of Riverside County is a challenge. County personnel and services are lacking in Blythe, as the County seems to forget Blythe is part of Riverside County. The many state laws, taxes and regulations also make it impossible for Blythe to compete as a border town, mere miles from the State of Arizona. The State's one-size-fits-all approach to governing has substantially hindered Blythe's growth and potential. State laws, such as Califomia's Short-Lived Climate Pollutant Reduction law (SB 1383) as an example, place ...

There is no coordinated effort searching for overlooked county, state, or federal grant opportunities.

Response: Disagree Partially Score: 0

The City wholly disagrees with this finding. The City actively searches for and applies for Federal, State and County grant opportunities. [n the last year alone, the City received $500,000 in Federal firnding to replace much needed water infrastucture. This grant funding was pursued by City staff and supported by Congressman Ruiz, the Coachella Valley Association of Governments and elected aod community officials before it was appropriated in the cunent Federal budget. City staff is also cunently pursuing additional grant fi:nding for water infrastructure upgrades through the State Water Reso...

Blythe has been dealing with deficits to its Operating Fund for nine years and must increase its sustainable revenue base to maintain minimum levels of City services.

Response: Disagree Partially Score: 0

The City partially disagrees with this finding. The City assumes the Grand Jury is referring to the City's General Fund as tle "Operating Fund" for the City. Since 2016, the City has not had a deficit in its General Fund. From 2008 through 2015, the City worked tirelessly to eradicate deficits in several City funds inherited from a previous administration dating back to the 1990s. The City continues to improve the financial health of the City year over year. The table below, taken from the City's audited financial statements, reflects the progress made in the City's General Fund over the past ...

One-time windfalls, such as funding from county, state and federal programs, will benefit Blythe in the short run but will not solve long-term issues.

Response: Disagree Score: -1

The City wholly disagrees with the finding. Although one-time windfalls such as COMD-I9 relief funding will help with one-time expenditures, freeing up other City revenue to be used for other purposes, the City does not expect it to solve any longterm problerns. The City does not use these funds to support ongoing operations, so there is no concem ofunfirnded expenditures when this funding is no longer available. As stated above, the City has already taken the actions necess.ry to address the City's long-term financial problerns, which will be resolved with or without "one-time windfalls". F5....

Serious questions continue to arise as to whether Blythe can remain as a “going concern.”

Response: Disagree Score: -1

The City wholly disagrees with the finding. The City's General Fund has improved over the last few years including having a positive change in fund balance of approximately $1.8 million and an unassigned fund balance of $689,370, which was one of the issues related to the going concem. The City has also reduced liabilities in other funds such as the Golf Course Enterprise Fund to lower its negative fund balance. However, based on the disclosures in the latest furancial statements (Fiscal Year ending June 30, 2021) and discussions with the City's auditors, the City has other situations causing...

Blythe officials have not yet produced a strategic long-term financial plan for the City’s survival.

Response: Disagree Score: -1

The City wholly disagrees with this finding. The City implernented a plan in 2008 to reduce expenditures and live within its means, producing balanced budgets year over year for the first time in over a decade. The City's long-term plan was to dig its way out ofa negative financial position and rebuild the city's financial health. This was a slow process, but the goal was attained. Now that the General Fund is no longer in a deficit position, and has healthy reserves, the city has focused on rebuilding the city in a fiscally conservative manner. F7 Internel biases and civic pride have created...

Internal biases and civic pride have created challenges to accepting external input and ideas.

Response: Disagree Score: -1

The City wholly disagrees with this finding. The City does not believe community pride is a negative. City leaders, staff and residents are passionate about their community, as the Grand Jury discovered, and as is evident to anyone visiting our City. However, this'!ride" does not mean the City is closed offto new input or ideas. It is quite the opposite. The City Council is active in the Coachella Valley Association of Govemments, Nverside County Transportation Commission and the League of Califomia Cities, to name a few. The Interim City Manager was selected to be a panelist during a session ...

In the opinion of the Grand Jury a great need exists for a visionary leader with proven experience dealing with distressed cities to guide Blythe away from potential insolvency.

Response: Disagree Score: -1

The City wholly disagrees with this finding. For the past five years, the City Council, Interim City Manager and City staffhave advanced the fiscal position of the city, moving the city farther and farther away from potential insolvency. The Interim city Manager was responsible for the adoption and implementation of the City's commercial caot pro$am and helped the City successfully adopt a tax on commercial cannabis busin " e b s i s s e s. The Interim City Manager was also instrumental in the passage of Measure K, a lo/olocdsales tax for the City of Blythe, which has resulted in additional an...

The Grand Jury did not find that disincorporation is an option that should be considered part of any strategic plan for the foreseeable future. 10

Response: Agree Score: +1

The City agrees with this finding. Grand Jury Recommendations: Rl. The Grand Jury concurc with meny of the Stete Auditor's recommendetions, espectally the need thet a perm.trent Ctty Menager be hircd. Thc current Interim Clty Meneger splits her tirne ls City Clerk end has performed both positionc admirably under difficult conditions. Eowever, Blythe is facing ar e{stential thre.t thet acreams for a full-tlme permenent Clty Manager with proven turnrround ckilk end erperience The recruitment effort should be completed no lrter than December 31r 2022 it order to rllow dme for creetion ofr new str...