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unavailable. They may exist with the city or on the city’s computer servers, but they could not be located during the course of this study. This lack of information may be related to the current staff’s unfamiliarity with where the prior administrative services director maintained records and files. Thirdly, in prior years, the city maintained various reserves or funds for emergencies. In recent years, the City has used those funds and reserves in order to balance its budget. The city had use of those reserves only one time and as each is exhausted, they are unavailable in the future to resolve the city’s budget shortfalls. Last year (FY200405), the city showed a new $3,738,100 fund balance reserve related to the city’s loan to the Redevelopment Agency(RDA). The terms of the loan provide for the city to receive six per cent interest on the $3,738,100 loan balance from the RDA, but the RDA is not expected to make payments on the principle balance next year. Thus it is misleading to draw conclusions from a quick read of the figures appearing in the CAFRthey must be interpreted in context. So the city and the IBCC PAC knew they were deficit spending prior to 2003. Lets take a look at some quotes from the PAC’s faux newspaper from the 2004 Campaign season. Imperial Beach Concerned Citizen’s 2004 Voter’s Guide “Today, Imperial Beach enjoys a measure of prosperity and fiscal stability because of the careful, consistent stewardship of resources by
our elected officials” (Opposite of what Maximus’ report says). In an attack on candidate Bill Medlock the IBCC faux newspaper stated: Medlock Offers Economic Stability. ”Either he doesn’t know that the city has a budget surplus and is economically stable or he is ignoring the fact.” (No such facts Maximus' Report says) “Most of all, Fred is proud of how far our city has come and wants to work with the current council to keep us moving in the right direction. If you like what you’ve seen happening in IB, then Fred is your man. He will bring a fresh, strong voice to the council. He will help build us up, not tear us down. With Fred on the City Council, the best is yet to come!”(Bankruptcy or higher taxes is the best yet to come, according to Maximus) “As a fledgling organization fighting high rise, high
density development along our beachfront, IBCC realized early on that the best way to protect our quality of life was to support good people to run for City Council.” “Over the years the best of the best have stepped forward to serve Marti Goethe, Mike Bixler, Diane Rose, Steve Haskins, Mayda Winter and Patricia McCoy. The past fourteen years will certainly be looked upon as a golden era for IB government. The vision, hard work, wise decisions, and steady hands of a succession of City Councils has transformed IB from a struggling financially strapped burg to an admired little city on the move.” (Transformed IB from a struggling financially strapped burg into a struggling financially strapped burg. According to Maximus these supposedly steadyhanded IBCC leaders have been deficit spending since before 2003 and lying about
it!) Even with incomplete data due to “missing city records,” Maximus predicts the city will exhaust all its reserves within three years. The revenue expected from a new Seacoast Inn and a possible new development at Ninth and Palm would be insufficient to overcome the City’s growing needs. While the integrity of the RDA is in question, the city has elected to loan money from the limited reserves to the RDA. It now appears that the RDA will be unable to pay back those loans on time due to delays in proposed projects and the withdrawal of developer Horton on the Ninth and Palm project. The RDA does not need a vote to pass a bond measure; unlike the City Council or School District. The RDA can incur debt and interest without voter approval, however property owners will be legally obliged to pay off the debt
they incur. While the RDA mirrors the City Council (same members) the co-mingling of assets and low interest loans of the City’s reserves is ethically wrong. Shuffling funds back and forth to pay for ecotourism studies and to pay lobbyists to convince us to vote for more taxes is about as crooked as a government can get! Our City Council/RDA has ignored its fiduciary responsibility to the citizens, property owners and taxpayers. Paying $30,000 for a report that does not have all the facts to start with, is misuse of taxpayers money. Until all the missing financial information is produced, any financial report is inaccurate. Patricia McCoy, Diane Rose, Mayda Winter, Fred McLean and Jim Janney should be held criminally responsible until the City’s Records and Financial Memory can be restored! If they cannot obtain
SEE MAXIMUS, PAGE 8
Political clique continues to abuse non-profit status
By Ed Kravitz
lthough many I.B. residents may be dedicated volunteers for their favorite non-profit organization's stated mission, several groups may be violating State Law. Might there be a conflict of interest by having their members actively involved in lobbying or posting campaign signs and materials? Are some of these groups established just to self-perpetuate encumbency at the Council and School Board? SWIA, SBUSD Education Foundation, Wildcoast, Bike Trail Coalition, Environmental Health Coalition, Friends of the T.J. River Valley, Friends of the Otay Valley Regional Park, Friends of the South Bay Wildlife Refuge, I.B.
Beautiful and others seem to also be actively involved with not only lobbying for legislation and grants, but also activly engaged in the campaigns of IBCC Candidates. Are any of these groups just laundromats to redistribute tainted money back to the political worker bees and flying monkeys? By law, Non-Profit Corporations or 501(c)(3)s as they are called, are open to public membership. Anyone can join! Two years ago I.B. resident John Carr attempted to join SWIA. He was refused membership and then arrested for trespassing. Limiting the membership of SWIA to IBCC supporters is a violation of State Law. Using a non-profit’s status to skim money from grants voted for by McCoy and
Winter is also illegal. The SBUSD Education Foundation which was cofounded by Dee McLean and Winter has been very active in local politics, to the extent that it self-perpetuates incumbency by School Board Members and the local IBCC candidates they support for City Council. Local School Board members who belong to the SBUSD foundation “confessed” to removing the “I.B. Voters' Guide” from news stands in 2004! Read the "Censorship In I.B." story on the Web at http://saveib.com. Under a new law in California it is now illegal to remove five or more copies of a publication for the purposes of preventing others from reading it. All of these and other local non-profits should be
scrutinized by the State Attorney General and the Grand Jury. The officers of SWIA have repeatedly refused to disclose where their money comes from and where it goes. SWIA’s attorney Steve Haskins responded that they were only required to furnish a copy of their income tax statement. Is SWIA laundering grant money and redistributing it to its political supporters and its officers? We think so, but unless they furnish what should be public information, there is no way to know for sure. By refusing membership to anyone, they violated State Law and should lose their non-profit status. They are not a true wildlife group, but a front for the IBCC Political Laundromat; until otherwise proven!
Page 6 - I. B. Voters' Guide - Nov. 2006
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