Council asks staff for options on outside audit after Measure Z defeat

Council Member Casimir Gutierrez (as named on the record) introduced a motion asking staff to return with options and cost estimates for a citywide external audit or targeted organizational assessments following last year’s Measure Z defeat and subsequent budget cuts.

"We need to take a deep dive into our budget mistakes," Gutierrez said, asking staff for menu options ranging from a five-year citywide audit to more limited departmental reviews and associated costs.

Council members debated audit type and cost. Some members favored an organizational assessment or management review as a more affordable, actionable alternative to a full forensic audit, while others supported a forensic or broader external examination if suspicions warranted it. The city manager said estimates could range into the mid-hundred-thousands depending on scope and that staff would return with specific options.

Public speakers urged a substantive outside forensic audit rather than an internal review. John Nelson told the council he expects to find surpluses in certain enterprise funds and described perceived accounting practices that merit outside scrutiny. "I've brought it to the attention of several members of this council ... there’s a surplus of a half $1,000,000 at least every year," Nelson said, referencing an enterprise fund he said the public does not fully understand.

Council members requested both financial-cost estimates and discussion of using the newly formed citizens' audit committee as part of outreach, with several members stressing transparency to rebuild voter trust.

The city manager was directed to return with options outlining scope, cost and a recommended timetable; no immediate vote was taken to commission an external audit.