Council accepts Visit Lompoc annual report after directing staff to obtain financial records

The City Council on July 15 accepted the annual report for the Lompoc Tourism Improvement District (TBID) but added a direction for staff to obtain Visit Lompoc’s financial records for contract compliance review.

The council’s action followed public comment raising concerns about Visit Lompoc Inc.’s accounting and a county grand jury review. A public speaker cited differences in how Visit Lompoc reports “carryover” and asked for an independent financial audit. Gilda Aiello, representing Visit Lompoc, urged the council to accept the annual marketing report; she said the organization already provided the financials to the city’s finance division.

At the meeting the city attorney clarified the legal limits and options. “The council can direct city staff to engage an auditing firm to undertake an independent financial audit of Visit Lompoc,” the attorney said, but the city cannot compel Visit Lompoc itself to commission an audit. The attorney also noted that the TBID annual report the council was reviewing must comply with state TBID law; that required annual report is distinct from an independent audit or certified financial statements.

Council discussion focused on transparency and the documents the city already may request under the TBID management agreement. The contract’s sections 10.1 and 10.2 require Visit Lompoc to “maintain full and complete records” and allow inspection by designated city officials. City staff told the council they have received summarized balance-sheet and profit-and-loss information for reconciliation but had not received full itemized receipts and vendor-level detail for recent years.

Councilor [name withheld per transcript attribution rules] moved that staff exercise the contract inspection rights in sections 10.1–10.2 and obtain receipts and expenditures for review; the motion was seconded and the council voted 5–0 to accept the annual report while directing staff to obtain the records. Staff said records obtained under the contract can be inspected by city officials and will be available to the public through city records processes.

The council did not order an independent audit at the meeting, but several council members said an audit remains an option if the document inspection raises questions. Staff told the council that Visit Lompoc told them it had attempted to obtain an independent audit previously but had difficulty securing a CPA firm; the contract requires a full audit every four years and an accounting review in alternating years.

The acceptance of the annual report and the direction to staff are intended to address transparency concerns without immediately ordering a formal paid audit, officials said.