Report 2018-110 Recommendation 9 Responses

Report 2018-110: City of Lincoln: Financial Mismanagement, Insufficient Accountability, and Lax Oversight Threaten the City's Stability (Release Date: March 2019)

Recommendation #9 To: Lincoln, City of

To the extent allowable by law, the city council should develop a plan by August 2019 to provide equitable consideration to ratepayers for the utility costs they incurred that were higher than necessary because of the city's practice of not paying for its own water, sewer, and solid waste services.

1-Year Agency Response

Credits related to the City's use of municipal water were provided to the rate payers as a one-time bill credit in March 2020.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

Lincoln has demonstrated that it provided credits to ratepayers for the utility costs they incurred because of the city's practice of not paying for its own water, sewer, and solid waste services.

6-Month Agency Response

On April 23, 2019, City Council directed staff to provide credits to rate payers in order to provide equitable consideration of for the City not historically paying for utility costs incurred by the City directly. Staff is in the process of calculating the credits, and then will submit a formal item to City Council for approval of the issuance of the actual credits.

California State Auditor's Assessment of 6-Month Status: Pending

60-Day Agency Response

A presentation regarding this item was presented to City Council on April 23, 2019. Staff is now refining the refund methodology and will present a final item for consideration to City Council by the August 2019 deadline.

California State Auditor's Assessment of 60-Day Status: Pending

All Recommendations in 2018-110

Agency responses received are posted verbatim.