By: Julie Farren , June 20, 2014 | Original Article at Record Gazette
After a heated discussion between Beaumont city council members and residents who have been pushing for years to have City Manager Alan Kapanicas release internal audits, the city has released a draft audit of its finances.
The budget was discussed during the workshop portion of Tuesday’s meeting.
The audit was included in the agenda items under financial statements, but Lloyd White, who announced recently that he is running for city council, disputed Kapanicas by saying he didn’t realize it would be up for discussion.
Mayor Brenda Knight and Councilmembers Jeff Fox and Brian DeForge said they had only received their copies of the draft audit before the meeting. Councilmember Dave Castaldo said he received his copy Monday evening.
The council said they hadn’t had time to review the draft financial statement, which is 88 pages long.
The audit is available on the city’s Web site, along with city audits for the years 2007-2012, RDA audits for 2009-10 and annual budgets for 2010-11 and 2013-14.
The certified public accounting firm of Moss, Levy and Hartzheim, based in Santa Maria, prepared the audits. Partner Hadley Hui gave an overview at Tuesday’s meeting and asked that questions about it be submitted in writing so the company can review them and get back to the city with answers.
Some audience members, including residents Judy Bingham and White, asked why they hadn’t received a copy of the audit along with the council members. Knight said the council had to vote on it before releasing it to the public.
The draft financial statement ending June 30, 2013 states that the city of Beaumont divides its assets and liabilities into two categories: governmental and business-type.
Combining both, the assets totaled $109,913,325; liabilities were $61,388, 631. Total net assets were $48,524,691.
Governmental includes public safety, public works and community development. Business includes sewer and transit.
Castaldo appeared to get frustrated when he wanted to ask questions but was told the questions had to be in writing.
Hui said the city had a $6.8 million deficit in June 2013. Kapanicas said that there was a deficit of $21 million in lost RDA funds and a $3 million deficit in construction and administration money.
The city had loaned the Redevelopment Agency $21 million. But then the state’s redevelopment agencies were disbanded and the money was divided up between cities.
The $21 million would be repaid over 20 years to the city, but first Beaumont has to pay the $3 million in 10 years before it can receive the $21 million.
White said he felt that the council had violated the Brown Act by not listing the audit in the workshop.
Solera resident Nancy Carroll said she wished that the audit had been handed out at the meeting.
Knight said she didn’t have any problems releasing the audit Tuesday night and after the vote, it was put on the Web site.
The auditors will return for a future council meeting, although that date is unknown, said Knight.
Staff writer Julie Farren can be reached at jf*****@re***********.net.