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Nevada City officials are trying to straighten out thousands of dollars in old parking ticket fines owed the county, even as they say they will make a June 30 deadline to repay Nevada County a $1.1 million loan.
Both matters will be discussed at the Board of Supervisors meeting, which starts at 9 a.m. today at the Rood Center, 950 Maidu Ave., Nevada City.
The issue of unpaid parking fines comes less than two years after an audit of city finances revealed hundreds of thousands of dollars had not been collected in other city fees.
Now, Nevada County claims Nevada City owes about $25,000 for parking ticket fines going back several years. Cities pay the county a portion of parking fines collected to fund jail and courthouse projects, as required by law.
Nevada City owed $50,000 in old fines and already has paid about half, county Chief Executive Rick Haffey said. The city is claiming a statute of limitations on the remaining $25,000, citing a previous period of nonpayment during the late 1990s.
The County Counsel's office has made a public records act request of the city to find out what happened to the money.
“There should be no excuse for nonpayment. They collected the money. We just don't know what they did with it,” Haffey said.
“You have to go back in the records and figure out what the amount is,” said City Manager Gene Albaugh, who learned of the financial hole in January. The funds aren't missing, Albaugh said.
“They were probably used to pay for other things,” Albaugh added.
“It is unclear at this point if it is a management problem in the Police Department, a cash flow problem for the city, or both,” Haffey wrote in a memo last week.
Once collected, money from parking fines goes into the city's general fund, said Nevada City police Chief Lou Trovato. The payments to the county were overlooked as staffing changed over the years.
Changes are being made so the mistake doesn't happen again, he added.
“I don't think anyone is responsible. Whoever was supposed to do it before is no longer here,” Trovato said.
A 2007 audit of city finances revealed an estimated $400,000 had not been collected in business and utility fees during the previous 20 years. Managers who oversaw finances during that time no longer work at the city; since the audit, officials have installed modern financial software, updated their procedures and worked to collect back fees.
Also this morning, Nevada County Treasurer and Tax Collector Christina Dabis will report to the board on Nevada City's ability to fully repay its tax and revenue anticipation note (TRAN).
The treasurer made a loan of $1.1 million at 2.78 percent interest to the city last year as an investment for the county, Dabis explained in March.
Collateral for the note is the city's property taxes, sales taxes and other forms of revenue, Dabis said in March. At today's meeting, Dabis also will discuss the possibility of renewing the note at a new interest rate.
Dabis would not discuss the plan when contacted about it on Monday.
This type of borrowing fulfilled the city's cash needs while saving the city up to $25,000 in bond counsel and financial advisor fees, Albaugh said.
Dabis has bought these types of notes in the past from the town of Truckee and the North San Juan Volunteer Fire Department.
In light of the poor economy and concerns about the city's stability in the future, supervisors requested the review by Dabis.
“Right now, with the way the economy is, I think everyone is concerned about everything. Things are going to get tough. It's like the beginning of a bad storm,” said District 3 Supervisor John Spencer.
Despite flat revenue and a projected deficit of $84,000 in the coming fiscal year of 2009-10, Nevada City will pay the note in full by June 30, using money from the city's treasury, Albaugh said.
“We wouldn't borrow it if we didn't think we could pay it back,” Albaugh said.
The city has struggled to close a $200,000 deficit for the current 2008-09 budget by closing City Hall one day a month and laying off several employees.
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To contact Laura Brown, e-mail lbrown@theunion.com or call 477-4231.
Both matters will be discussed at the Board of Supervisors meeting, which starts at 9 a.m. today at the Rood Center, 950 Maidu Ave., Nevada City.
The issue of unpaid parking fines comes less than two years after an audit of city finances revealed hundreds of thousands of dollars had not been collected in other city fees.
Now, Nevada County claims Nevada City owes about $25,000 for parking ticket fines going back several years. Cities pay the county a portion of parking fines collected to fund jail and courthouse projects, as required by law.
Nevada City owed $50,000 in old fines and already has paid about half, county Chief Executive Rick Haffey said. The city is claiming a statute of limitations on the remaining $25,000, citing a previous period of nonpayment during the late 1990s.
The County Counsel's office has made a public records act request of the city to find out what happened to the money.
“There should be no excuse for nonpayment. They collected the money. We just don't know what they did with it,” Haffey said.
“You have to go back in the records and figure out what the amount is,” said City Manager Gene Albaugh, who learned of the financial hole in January. The funds aren't missing, Albaugh said.
“They were probably used to pay for other things,” Albaugh added.
“It is unclear at this point if it is a management problem in the Police Department, a cash flow problem for the city, or both,” Haffey wrote in a memo last week.
Once collected, money from parking fines goes into the city's general fund, said Nevada City police Chief Lou Trovato. The payments to the county were overlooked as staffing changed over the years.
Changes are being made so the mistake doesn't happen again, he added.
“I don't think anyone is responsible. Whoever was supposed to do it before is no longer here,” Trovato said.
A 2007 audit of city finances revealed an estimated $400,000 had not been collected in business and utility fees during the previous 20 years. Managers who oversaw finances during that time no longer work at the city; since the audit, officials have installed modern financial software, updated their procedures and worked to collect back fees.
Also this morning, Nevada County Treasurer and Tax Collector Christina Dabis will report to the board on Nevada City's ability to fully repay its tax and revenue anticipation note (TRAN).
The treasurer made a loan of $1.1 million at 2.78 percent interest to the city last year as an investment for the county, Dabis explained in March.
Collateral for the note is the city's property taxes, sales taxes and other forms of revenue, Dabis said in March. At today's meeting, Dabis also will discuss the possibility of renewing the note at a new interest rate.
Dabis would not discuss the plan when contacted about it on Monday.
This type of borrowing fulfilled the city's cash needs while saving the city up to $25,000 in bond counsel and financial advisor fees, Albaugh said.
Dabis has bought these types of notes in the past from the town of Truckee and the North San Juan Volunteer Fire Department.
In light of the poor economy and concerns about the city's stability in the future, supervisors requested the review by Dabis.
“Right now, with the way the economy is, I think everyone is concerned about everything. Things are going to get tough. It's like the beginning of a bad storm,” said District 3 Supervisor John Spencer.
Despite flat revenue and a projected deficit of $84,000 in the coming fiscal year of 2009-10, Nevada City will pay the note in full by June 30, using money from the city's treasury, Albaugh said.
“We wouldn't borrow it if we didn't think we could pay it back,” Albaugh said.
The city has struggled to close a $200,000 deficit for the current 2008-09 budget by closing City Hall one day a month and laying off several employees.
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To contact Laura Brown, e-mail lbrown@theunion.com or call 477-4231.
