Financial Reserves of Central Basin Dip by $3.6 Million Following Appointment of New Attorney
In the heart of California, the Central Basin Municipal Water District, a vital agency that supplies water to over a million residents, has seen an unexpected dip in its cash reserves over the past few months.
According to records dating back to 2020, the California Treasurer's Local Investment Fund, which the agency manages, had never experienced a drop before March 2024. However, this trend changed dramatically in April 2024, when the cash in the bank dropped by a significant $1.1 million. The following month, in May, the cash dropped further by $100,000.
Elaine Jeng, the current general manager of Central Basin, generated a spreadsheet in July 2024 that revealed a concerning trend. The cash-in-bank balance dropped from $14.213 million when Dr. Alex Rojas was placed on leave to $10.537 million by July 2024, resulting in a drop of $3.676 million.
The total cash drop in the bank from January to May 2024 was $1.4 million, which is unusual considering the agency's monthly income from recycled water sales. This unusual cash drop has raised eyebrows, especially given the agency's recent spate of lawsuits.
The agency's insurance carrier has notified Central Basin that it risks losing its crucial insurance coverage for directors due to these lawsuits and the alleged mismanagement that has been brought to light. This risk of losing insurance coverage was announced after some Central Basin Directors began taking more in payments to attend meetings, following the board's illegal actions in February 2024, which resulted in the placement of Dr. Alex Rojas on paid leave and the appointment of attorney Victor Ponto as acting CB General Manager.
It is worth noting that the appointment of Victor Ponto as general manager occurred after certain CB Board Members placed Dr. Alex Rojas on paid administrative leave in February 2024. The August 2024 board meeting report showed Central Basin cash at $14.2 million when Victor Ponto took over.
However, the Central Basin agency has not included the cash in bank report with the August, September, or October Administration and Finance agendas, making it difficult for the public and financial analysts to fully understand the agency's financial situation.
Water agencies such as Facebook, Twitter, Instagram, LinkedIn, and Mail are not directly involved in these financial issues, but the concerns surrounding Central Basin's financial management serve as a reminder of the importance of transparency and accountability in public institutions.
