Financial crisis? "Absolutely not."
b'August 9, 2022 \\u2014 The Mendocino County Board of Supervisors is facing fierce criticism after its unanimous decision last week to send a letter to the state controller, asking for help with the county\\u2019s books. \\u201cI think we have a financial crisis here, and we just don\\u2019t know how bad it is,\\u201d said Supervisor Ted Williams, during a discussion about projected cost overruns at the project to build a new jail. But the county\\u2019s own financial experts say the real problems are miscommunication, misinformation, and a lack of financial understanding at the leadership level.\\n\\nOn Tuesday afternoon, after last week\\u2019s Board of Supervisors meeting, Chamise Cubbison, the newly elected Treasurer-Tax Collector/Auditor-Controller, wrote a letter to the Board, complaining that \\u201cthere was a lot of misinformation discussed at today\\u2019s meeting and no opportunity for rebuttal or open discussion. I would hope the Board would seek information directly before spreading rumors.\\u201d She took on Williams\\u2019 assertion that he hasn\\u2019t been able to get a credible financial report the whole time he\\u2019s been in office, writing that the statement that \\u201coutside auditor recommendations are being ignored and not implemented is false.\\u201d She claims that she had already explained to Williams that the outside auditor makes adjustments to the information depending on where it\\u2019s being reported, whether on a financial statement or to the state or federal government.\\n \\nAnd in an interview, Retired Treasurer Tax-Collector Shari Schapmire said that she believes \\u201cthe majority of this board is ill-equipped to comprehend the financial complexities that are inherent in the operation of the county.\\u201d She added that overall, communication deteriorated during COVID, but she thinks most of the board members \\u201calso lack the communication skills to have any dialogue with any staff outside the CEO\\u2019s office that may be able to assist them. Right out of the chute, I want to say I do not believe the state controller\\u2019s office needs to access the records or clean anything up.\\u201d\\n\\nAsked if she thinks there is a financial crisis, Schapmire said, \\u201cAbsolutely not\\u2026I do not believe there is a financial crisis. I\\u2019ve been through a financial crisis. I know what a financial crisis is. And I cannot imagine that we would be there, less than five months after I have retired.\\u201d \\n\\nShe took umbrage at Board comments about a lack of skill in the financial offices, particularly Supervisor Glenn McGourty\\u2019s assertion that he supports \\u201ca professional financial office, which is what most big organizations have, where you appoint people based on their skill set and a proven track record of handling money well. And if we look back through Mendocino County\\u2019s history at the Auditor-Controller and Tax Collector-Treasurer, we don\\u2019t see that pattern.\\u201d \\n\\nSchapmire drew on history to refute the claim, saying, \\u201cIf you go back a decade ago and look at the financial meltdown, there was an unbelievable effort in place by the CEO, Auditor, Treasurer-Tax Collector, and the sitting Board of Supervisors, all working together to address several financial issues that the county was facing. And despite these claims, this group was extremely qualified to address those catastrophic issues and they were addressed. And I think there absolutely was a proven track record of those individuals that were there at the time, me being one of them. We handled this during the most dire of times. And I think if Supervisor McGourty hasn\\u2019t seen this, he wasn\\u2019t paying attention the last decade\\u2026It almost feels like they have some inadequacies at the Board, and it\\u2019s almost like they\\u2019re publicly airing irresponsible and inaccurate information because they\\u2019re trying to deflect from those inadequacies.\\u201d\\n\\nCubbison emphasized the theme that financial information is available, and laid out some details about a breakdown in communication. She wrote that shortly before his retirement last year, she and former Auditor-Controller Lloyd Weer met with members of the Executive Office fiscal team to discuss the projected deficits in the health plan, which they expected would keep growing. The shortfall in the health plan for fiscal year 2020/2021 was $3.6 million. The projected shortfall this year is another $4 million. \\n\\n\\u201cIt is unfortunate that the CEO\\u2019s office and the Health Plan consultants did not sound the alarm sooner on the growing deficit, but that is not because the information was not available,\\u201d she wrote. \\u201cMr. Weer and I both believed that the CEO\\u2019s office would present the issue during the already scheduled future Board agenda item to go over the Health Plan. We were both surprised that a higher Health Plan contribution rate was not requested at that meeting.\\u201d\\n\\nSchapmire thinks the Board should have allowed the auditor\\u2019s office to replace Weer as soon as possible. Leaving the top position vacant for months, and then consolidating the offices of Treasurer-Tax Collector and Auditor-Controller were two decisions that leave her with \\u201cvery deep concerns.\\u201d She also does not have confidence in the fiscal team at the county\\u2019s Executive Office. \\u201cThere is a lot of stuff this financial team doesn\\u2019t know anything about, and all those things are going to come up,\\u201d she predicted. \\u201cNobody knew what these offices did before they consolidated the positions, and nobody really cared to find out.\\u201d\\n\\nLooking to the future, Schapmire thinks last week\\u2019s public stumble could affect the county\\u2019s credit rating. At its meeting next week, the Board will discuss how much money it wants to leverage through new bonds to pay for the new jail. \\u201cAnytime that you want to issue new debt, a rating agency is going to review the county\\u2019s credit rating,\\u201d she explained. \\u201cAnd in order to maintain a positive credit rating and receive the best rate, they need to see that there is a stable government. You know, the governing body and the financial leadership team. And I think by saying these kinds of things, and acting like this county doesn\\u2019t have a clue what\\u2019s going on, I don\\u2019t think they understand the consequences of their actions,\\u201d she concluded.'