Maintenance Districts Budget Audit Preliminary Findings and Recommendations (West Village) January 20, 2016

Transcription

1 Maintenance Districts Budget Audit Preliminary Findings and Recommendations (West Village) January 20, 2016

2 THREE CRITICAL BUILDING BLOCKS OF GOOD GOVERNMENT Oxnard 2020 Determining our Future Now Innovation( and*( Focus*on*the*Future( ( Ensuring*Excellent* Services( Corporate*Support,*Accountability( and*value*systems( 2

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4 IMPLEMENTATION ACTION PLAN: ONE-YEAR PLAN Recommendation 5 of One Year Plan (Priority 1B): Prepare a comprehensive financial assessment of the Environmental Resources, Golf Fund, Performing Arts Center Fund, benefit assessment and Development impact fee funds. 4

5 BACKGROUND September 2014 Organizational Assessment determined that Maintenance Assessment Districts (MADs) required a comprehensive review due to deficits and surpluses accrued in various districts. October 27, 2015 City Council received presentation concerning the key findings and recommendations in the NBS report. Recommendations Included: District Boundary Audit completed December 15, 2015 Review and Update of Internal Goals and Policies in progress Establishment of Landscape Maintenance Service Levels in progress District Budget Audit preliminary findings January 13, 2016 District Levy Audit in progress, expected completion February

6 BUDGET AUDIT For all of the 58 Maintenance Assessment Districts, the following items were reviewed: Engineer s Reports Authorized Improvements City Maintenance Activities Services Contracted to be Provided Actual Utility Invoices Additional Invoices/Expenses Actual invoices, receipts and credit card statements Allocation of Direct and Indirect Costs Location of Utility Meters Revised Budget was Created 6

7 BUDGET AUDIT FINDINGS Additional Authorized Improvements (32 Districts) Utility Meters Meters Assigned to the Districts need to be reviewed and verified Districts with no utility meters/invoices Service address mapped location in different/outside of District Annual Utility Budget Capped (30 Districts) Utility portion of budget is capped at 5% increase/year Annual Deficits (26 Districts) Annual Surplus (33 Districts) LMD 39 is being counted as 2 Districts, but it was formed as single District 7

8 BUDGET AUDIT RECOMMENDATIONS Maintenance Activities for All Districts Should be Re-bid Establish Service Levels in progress City Should Implement Procedures to Verify Contractor s Maintenance Activities Monthly reporting, independent verification 2016/17 Direct Costs spread based on actuals (REGIS) 2016/17 Indirect Costs spread proportionately based on District Budget Increase/Replacement Assessments Prioritization of Districts Districts with Surpluses Replacement plan, surplus spending, levy credits Continued Property Owner Outreach 8

9 WEST VILLAGE DISTRICTS Authorized Improvements Contracted to be Maintained District Landscaping Trees Debris Removal Lighting Graffiti Park Basin Maint. Screen Wall Sound Wall Removal Amenities (1) (fencing)(2) (2) LMD No. 31 X X X X X X X LMD No. 36 X X X X X X X LMD No. 38 X X X X X X X LMD No. 39 X X X X X X X LMD No. 42 X X X X X X X LMD No. 46 X X X X X X X X LMD No. 51 X X X X X X X X X = Authorized and in Contractor s Scope of Services. (1) Basin Maintenance - Agreement lists the removal of trimmings, debris and graffiti from maintenance responsibility areas, but does not specifically list for detention basins (2) Screen Wall (fencing), Sound Wall and Block Wall maintenance were added to the contractor scope of services per addendum dated February 18, 2015 Additional Authorized Improvements Not Contracted to be Maintained District Sidewalks Medians Drainage Facilities Archways Mailbox Storm Drain Maint LMD No. 31 A A LMD No. 36 A LMD No. 38 A LMD No. 39 A A A LMD No. 42 A A LMD No. 46 A A A A LMD No. 51 A A A = Authorized, but not included in Contractor s Scope of Services. Note: Agreement lists the removal of trimmings, debris and graffiti from maintenance responsibility areas, but does not specifically list the actual improvements shown in the table above. 9

10 WEST VILLAGE DISTRICTS Water Utility Meter Discrepancies 21 water meters/accounts need to be verified Edison Utility Meter Discrepancies No invoices for Districts 31, 36, 38, 39, 42 and 46 Preliminary Revised Budget Revised Budget (Preliminary) /16 Levy 2 Projected Annual Surplus District LMD No. 31 $68, $72, $3, LMD No , , , LMD No , , , LMD No. 39 (P&S) 68, , , LMD No. 39 (DR) 24, , , LMD No , , , LMD No , , , LMD No. 51 (Pfeiler) 49, , , (1) NBS estimated 2015/16 budget amounts; preliminary. Assumes NBS change in utility assignments (pending City confirmation) (2) Per Ventura County 2015/16 applied reports. 10

11 NEXT STEPS City to Verify/Confirm Utility Meter Assignments City to Provide Est. Annual Costs for Additional Improvements NBS to Finalize Budgets Including review of annual 5% utility cap Districts with Surplus Funds: Identify additional authorized improvements Prepare replacement plan (begin replacement of improvements) Credit levies to reduce annual assessments Property owner refunds Community outreach Levy Audit for all Districts (February 2016) City to Hire a Staff Dedicated to Ongoing Admin of Districts Responsible to ensure City maintenance staff and contractors provide authorized services to appropriate service level standards Ensure existing issues are not repeated 11

12 QUESTIONS?