Report 2020-804 Recommendation 3 Responses

Report 2020-804: City of Lindsay: It Must Take Substantial Action to Address Its Financial Problems and Its Inadequate Management Practices (Release Date: August 2021)

Recommendation #3 To: Lindsay, City of

To ensure that its transfers of utility funds to the streets program comply with state law, Lindsay should perform a study to determine the appropriate level of funding from its utility fund for that program by August 2022 and update that study every three to five years.

1-Year Agency Response

Response: The City agrees with this recommendation.

Corrective Action: On November 9, 2021, the Lindsay City Council authorized

staff to award a contract for the City of Lindsay Street Fund Impact Study to

Provost and Pritchard Consulting Group.

Provost & Pritchard's proposal dated October 15, 2021, was incorporated into the

existing task order "Financial Analysis of Water and Sewer Rates and Reports"

approved by the Lindsay City Council on October 13, 2020. Provost & Pritchard's

proposal provided an updated cost analysis for providing utility services and

determined the cost these services bear on city streets.

On August 23, 2022, a summary of Provost & Pritchard's comprehensive financial

analysis was presented to the Lindsay City Council (Exhibit A). City staff plans to

hold a public hearing to consider the adoption of a new citywide fee schedule,

establishing and amending municipal fees and charges for various municipal

services, and repealing all other resolutions relative to municipal fees and charges

thereto.

Estimated Completion: August 2022.

Responsible Staff: City Management, Finance Department, City Services.

Status: Complete.

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

6-Month Agency Response

On November 9, 2021, the Lindsay City Council authorized staff to award a contract for the City of Lindsay Street Fund Impact Study to Provost and Pritchard Consulting Group.

Provost & Pritchard's proposal dated October 15, 2021 (Exhibit A) will be incorporated into the existing task order "Financial Analysis of Water and Sewer Rates and Reports" (Exhibit B) approved by the Lindsay City Council on October 13, 2020. Provost & Pritchard's proposal will provide an updated cost analysis for providing utility services and determine the cost these services bear on city streets. Action for rate changes remains with the Lindsay City Council.

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

60-Day Agency Response

The Lindsay City Council approved a contract for a Financial Analysis of Water and Sewer Rates on October 13, 2020. On November 9, 2021, the Lindsay City Council authorized staff to award a contract for the City of Lindsay Street Fund Impact Study by amending the water and sewer rate contract. This study will provide an updated cost analysis for providing utility services and determine the cost these services bear on city streets.

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

All Recommendations in 2020-804

Agency responses received are posted verbatim.