Santa Barbara
73° F
Clear
Clear
Santa Maria
67° F
Clear
Clear
San Luis Obispo
66° F
Clear
Clear
Ventura
70° F
Clear
Clear

Lompoc Responds to Grand Jury Criticism

By Keith Carls, KEYT - KCOY - KKFX Reporter, KeithCarls@kcoy.com
Published On: Jan 02 2014 07:28:55 PM CST
Updated On: Jan 02 2014 11:33:13 PM CST

Mayor says City working on non-profit audit ordinance.

LOMPOC, Calif. -

The City of Lompoc is defending itself amid criticism from the Santa Barbara County Grand Jury that its not doing enough to protect taxpayer money.

The scrutiny comes in the aftermath of the multi-million dollar collapse of a local non-profit group that the city supported.

The City of Lompoc was among several public and private entities on the losing end of the financial meltdown of the non-profit Lompoc Housing and Community Development Corporation.

The LHCDC developed or owned affordable housing units in the city as well as other real estate investments like the historic Lompoc Theater.

The demise of the LHCDC came amid the the collapse of the local real estate market.

"The economic collapse of 2008 started a chain reaction", Lompoc Mayor John Linn says, "they didn't react to it quick enough and it took them down."

In 2012 the Santa Barbara County Grand Jury called on the City of Lompoc to require all non-profits receiving loans and grants from the City in excess of $50,000 to file an annual audit prepared by an independent auditor.

In a recent follow-up letter,  the Grand Jury said the City of Lompoc has failed to live up to a pledge to adopt a non-profit audit policy to protect taxpayer funds.

"We've been doing it all along", says Lompoc Mayor John Linn, "obviously we've had some other challenges because its not the only thing we're working on, but we also chose to expand it to cover more areas so it's a better document, brought a lot of comment in from the community and the non-profits so we didn't create something that was burdensome to them."

Mayor Linn says the new non-profit audit ordinance will include organizations that also receive state and federal funding.

"I think its very unlikely that something like that (LHCDC) will come along again", Mayor Linn, "because there is no redevelopment money for housing, and this is what the council talked about, there's no more CDBG money for housing, what we're liable to see in the future would be funds for another purpose outside of housing and that's why we chose to make this a much more broad ordinance."

Mayor Linn says the city's non-profit audit ordinance could be adopted as early as next month.

Comments

The views expressed are not those of this company or its affiliated companies. Please note by clicking on "Post" you acknowledge that you have read the Terms Of Service and the comment you are posting is in compliance with such terms. 
blog comments powered by Disqus