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City finance director defends enterprise reimbursement plan, urges new study to update methodology
Summary
Management services director Christie Donnelly reviewed the city’s enterprise reimbursement program, explained its legal and accounting rationale, and recommended a new reimbursement study in early 2026; council members debated the method’s defensibility, potential fiscal impacts and legal risks but took no formal vote.
Christie Donnelly, Lompoc’s management services director, opened a lengthy review of the city’s enterprise reimbursement plan at the May 20 council meeting, saying the interfund charges recover measurable general‑fund costs that enterprises—water, wastewater, electric and solid waste among them—impose on shared services.
Donnelly told the council that the 2016 HF&H consultant study had recommended full‑cost allocation for three categories (public safety, government facilities and right‑of‑way maintenance) and that the city had undercollected versus the 2016…
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