Finding F1
The Grand Jury estimated that the City’s failure to update its Cost Allocation Plan for more than 20 years resulted in the City overallocating approximately $5.5 Million of indirect costs to the Enterprise Funds. This was non-compliant with Proposition 218 and left the Enterprise Funds without sufficient money for maintenance and capital improvements.
Jury report: City of Sebastopol’s Water and Sewer Systems – Deferred Action Has Consequences · PDF page 19
Permanent linkOfficial response
Sebastopol City Council
Acknowledges an outdated allocation plan and possible overallocation, describing a new consultant plan, direct legal billing and expanded time tracking.
Read official response · PDF page 1Expresses partial agreement, but does not clearly resolve the disputed $5.5 million estimate, Proposition 218 conclusion and funding effect. Identifies ClearSource and planned FY 2027/28 work as concrete bases; R2 on page 5 says no specific historical amount has been determined.
This review evaluates the response document. Implementation claims have not been independently verified.