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City attorney warns county'run CTC arrangement may violate auditor guidance; council declines to renew as-is
Summary
City legal counsel told the council that the county'funded community program (CTC Magna) lacks a clear legal structure and would need nonprofit registration or an ordinance to meet recent state auditor recommendations; the county disagrees and the council voiced reluctance to sign a renewal that could trigger audit liability.
City attorney Nathan reported guidance from the state auditor's office that the CTC Magna program, as currently structured, does not meet new reporting and legal-entity requirements. Nathan told the council he had spoken with the auditor's office counsel and said the options include making the CTC an official city committee (which would require an ordinance and incur greater public-record obligations) or having CTC incorporate as a nonprofit and comply with annual reporting. "I have a hard time recommending that you sign something that the state auditor's office ... says is not legal," he said, noting the county plans to continue the current arrangement and the two parties disagree on the legal approach.
Council members expressed concern about audit liability and directed staff to pursue compliant options; they preferred not to continue a pass-through arrangement that leaves the city vulnerable to an auditor finding. Nathan said staff would continue discussing options with the county and the state auditor, and the council urged staff to avoid arrangements that would expose Magna to future audit penalties.
