Lompico County Water District under investigation by Grand Jury

The Santa Cruz County Grand Jury launched an investigation into the Lompico County Water District on Monday, asking for documents from the water company detailing its financial history and employment practices.
Three members of the Grand Jury made an unannounced visit the districts office in Lompico and asked for a series of documents including the districts audited financial statements, organizational chart and job descriptions, a schedule of all district board meetings into next year, meeting minutes and a list of planned capital improvements, board president Rob Hansel said.
District general manager Mike Eggleston said the district would comply with the Grand Jury’s requests.
Although he was unaware the investigation would take place, Hansel thinks the investigation could help the district in the long run.
“I hope so,” Hansel said. “It’ll bring more things out in the open that have been kept from the board members.”
Hansel said some board members, including himself, have had difficulty putting items on board meeting agendas.
Grand Jury members asked for the documents in a timely fashion but did not give a specific timeline, Eggleston said.
It is unclear why the Grand Jury has chosen the district as a subject for an investigation; however, the district has been operating at a deficit for the past several years and is facing serious financial troubles. Last pay period the district did not even have the cash on hand to make payroll, board member Lois Henry said.
The county processed the payroll which caused the district to go into a negative balance, county auditor-controller Mary-Jo Walker said. However, cash came in shortly after and as of September 30, the district had a positive balance, Walker said.
“We don’t have another special district (in the county) that runs this tight,” Walker said.
The district hired the county to process its bookkeeping in July, Walker said.
Hansel said the Grand Jury members told him they were investigating the district partly because of articles and comments on the Press-Banner Web-site.
The online comments, many signed with pseudonyms, criticize individual board members, the district general manager and the districts budget practices, while citing budget numbers and salaries.
“They’re really hurtful,” Hansel said.
Phone calls to the Grand Jury have not yet been returned.
The Grand Jury is a citizens oversight group which investigates complaints and concerns from members of the community and files a report each summer detailing its findings.
Read the full story in the October 9 Press-Banner.