Riverside County Grand Jury • 2023-2024

Courtesy: Caltrans Blythe, California Awakening of a New ‘Gateway City’

33 pages
Ver PDF original

Findings and Recommendations 9 findings

F1
A formal long-term strategic plan is needed to “guide the City’s budgetary decision-making and address long-term needs to achieve financial stability”. Blythe, in its Corrective Action Plan submitted to the State Auditor, acknowledged and agreed to develop the plan by the end of June 2023. This has not been completed.
Related Recommendations (2)
R1
Develop a long-term strategic plan, as recommended by the State Auditor. The plan is to guide the City’s budgetary decision-making, to address the long-term needs to achieve financial stability following the closing of Chuckawalla Valley State Prison, and to chart a path for improving its status as a ‘going concern’. Plan is to be completed and included in the City’s response to this report by end of September 2024. Based on Findings 1, 2 & 4 Financial Impact: No incremental costs
R2
Develop a five-year strategic plan, as recommended by the State Auditor, to define the City’s priorities, goals, and expected outcomes, based on the findings of the Retail Strategies project and the Blythe Economic Resiliency study. Plan is to be completed and included in the City’s response to this report by end of September 2024. Based on Findings 1, 2 & 4 Financial Impact: No incremental costs
F2
A five-year strategic plan, as recommended by the State Auditor, can be a separate plan, or a part of the ‘long term strategic plan’, referenced in F1. The plan is to define the City’s priorities, goals, and expected outcomes. It has not been developed.
No recommendations for this finding
F3
The position of City Manager has remained unfilled. The City’s administration is currently headed by an Interim City Manager, who is also the City Clerk. .
Related Recommendations (1)
R3
The City of Blythe should be clear as to its intention to hire a fulltime City Manager. If it is to hire, the Grand Jury recommends that a deadline be established no later than year-end 2024, following the adoption of a long-term strategic plan. The new city manager will be accountable for implementation of the City’s long-term and strategic objectives, as defined in R1 & R2. Based on Finding 3 Financial Impact: $200k - $250k (annual total compensation)
F4
According to the Independent Auditor’s Report (2023), there were no findings or issues with the City’s internal control and financial compliance. The City’s General Fund has improved “dramatically” ($2.6 million improvement). An in-depth analysis of the General Fund since 2008 shows significant progress, specifically over the last 3-4 years. “You are to be commended for that. You still have work to do, but have made significant progress”. However, two significant liabilities related to government pension obligations and Other Post-Employment Benefits were noted. These are impacted by factors not within the City’s control (i.e., interest rates). The auditors expressed continued doubt about the City as a ‘going concern’, which has existed since 2008, and believe it will probably continue for “some time”.
No recommendations for this finding
F5
Currently, according to Blythe airport staff, there is plenty of capacity for the storage of private planes, but no availability of plane rentals for pilots who cannot afford their own.
Related Recommendations (1)
R4
The Riverside County Office of Economic Development should develop a plan and present it to the Riverside County Board of Supervisors by year end 2024, in conjunction with the Blythe Airport management team, to attract businesses engaged in the storage and rental of small aircraft. Based on Finding 5 Financial Impact: No incremental costs
F6
In their report, the professor and students of Brown University did not include specific data on how much the prison closure will cost the economy, except to emphasize that it will be significant. Determining the financial impact on the economy will require more research and resources. The studies are conducted at no cost to the City; funding is through the University, the Urban Institute and the Justice Labs of America.
Related Recommendations (1)
R5
Blythe should accept that Chuckawalla Valley State Prison will close, as currently scheduled, and change its focus to developing a strategy by year end 2024 for what Blythe can do to negotiate financial support from the State. The City should continue to work with the professor from Brown University, the Urban Institute, and the Justice Labs of America to conduct further research to make clear the socio-economic impact on the City. Based on Finding 6 Financial Impact: No incremental costs
F7
There will need to be further conversations with legislators on how the City will be able to recover after the prison closure. Those conversations will require the services provided by the lobbying firm, Joe A. Gonsalves & Son.
Related Recommendations (1)
R6
The agreement with Joe A. Gonsalves and Son lobbying firm has a term of one year with a total compensation of $50,000. The City should amend the agreement for an additional year. Based on Finding 7 Financial Impact: $100,000
F8
Blythe’s city government believes that the County needs to make more of a commitment to Blythe. The County has, however, been an active participant in the campaign to keep Chuckawalla Valley State Prison open.
Related Recommendations (1)
R7
Riverside County should negotiate with the State for assistance in mitigating the negative economic impacts anticipated by the closure of CVSP, by developing implementation plans to work 28 directly with community leaders to support workers affected by loss of jobs, and to create an economic resilience plan for the community. Implementation plans to be presented to the Riverside County Board of Supervisors no later than year-end 2024. Based on Finding 8 Financial Impact: No incremental costs
F9
Blythe’s leadership has been responsive to new economic possibilities, notably cannabis cultivation, manufacturing & distribution, and electric vehicle charging stations. 27 ~
Related Recommendations (1)
R8
The City and the County’s Office of Economic Development should continue to seek out new economic opportunities, like renewal energy projects, that are consistent with the preservation of Blythe’s small-town appeal. A General Plan describing their vision for those efforts should be presented to the Blythe City Council and the Riverside County Board of Supervisors by year end 2024. Based on Finding 9 Financial Impact: No incremental costs ~