Los Banos council orders limited PBID audit, requires annual reviews and contingency for deeper probe
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Summary
The Los Banos City Council voted Nov. 5 to commission a scaled financial audit of the downtown PBID covering FY 20232024 and FY 20242025 with partial testing of 20222023 and required annual audits going forward.
The Los Banos City Council on Nov. 5 voted to commission a targeted financial audit of the downtown Property and Business Improvement District while avoiding a larger, six-year request-for-proposals process unless the scaled review turns up material issues.
City finance staff recommended a middle option presented by Price Page & Company: a higher-assurance audit covering fiscal years 20232024 and 20242025 with partial testing of 20222023, estimated at $28,500. Finance Director Moreno told the council the smaller engagement keeps the work inside the city27s informal procurement threshold and allows the audit to start sooner.
Supporters of an immediate, more-limited audit argued the approach balances speed and oversight. Critics and several downtown business owners urged a full, retroactive six-year audit, saying quarterly and annual financial reports had been incomplete or inconsistent. Mark Curtis, an affected downtown business owner, told the council the PBID has collected substantial assessments and urged compliance checks: “Please continue with the pledge to require the audit,” he said.
Members of the downtown association said the group has delivered tangible improvements downtown and asked the council to recognize that extensive audits could hamper operations. The association27s director said the organization "welcomes transparency" and expressed willingness to cooperate.
The council27s motion directs staff to proceed with the two-and-a-half-year audit (option 3), require annual audits thereafter, and return audit results to the council. The motion also specifies that if the auditors identify findings that justify a wider review the council will order a full retroactive audit and that the additional cost will be borne by the PBID. To limit immediate financial impact on the PBID, the council approved allowing the PBID to pay the audit fee in multiple installments spread over two years.
Council members said the decision attempts to balance the community27s demand for rapid transparency with the practical need to avoid a protracted procurement that could delay results for months. The motion passed by voice vote.
