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Recommendation R2

Recommendation R2

By October 1, 2026, reach an agreement on the dollar value of mis-allocated indirect costs and commit to a repayment schedule to restore funds transferred from the Enterprise Funds to the general fund by overallocation of indirect costs. This money can be used to implement critical improvements identified in the Master Plan.

Jury report: City of Sebastopol’s Water and Sewer Systems – Deferred Action Has Consequences · PDF page 20

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Official response

Sebastopol City Council

Agency says further analysis needed

Has not determined a historical overallocation amount; reports July 21 approval of forgiveness of a $1.1 million General Fund loan to the Wastewater Fund.

Read official response · PDF page 5

Does not provide an analysis completion/discussion timeframe or a repayment schedule for agreed historical costs. Loan forgiveness is a distinct reported action, not proof of repayment of the jury’s estimate.

This review evaluates the response document. Implementation claims have not been independently verified.

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