San Benito County recently paid Hollister $387,000 after it
found out the local courts hadn’t been paying the city its fair
share of fine revenue over four years.
San Benito County recently paid Hollister $387,000 after it found out the local courts hadn’t been paying the city its fair share of fine revenue over four years.
But county officials anticipated the error – confirmed through a state Controller’s Office audit – and had stashed away nearly $600,000 in a trust fund for it, according to acting head administrator Dan Vrtis. So after writing the check to Hollister last week, the county actually bagged almost $200,000.
The county set up the fund because officials were skeptical of the figures after state legislation passed in 1997 that muddied the allocation process, Vrtis said. There’s a “gyration” of factors that determine where the revenues go, he said.
The Superior Court is responsible for splitting the money and has fixed the problem for future years’ rationing, Vrtis said. And Hollister Finance Director Barbara Mulholland said the city should receive an annual boost of about a $60,000 to its projections.
“They basically tell us the money (amount) and jurisdictions it belongs to,” Vrtis said. “All we really do, is based on their records, issue the checks.”
Court Executive Office Alex Calvo could not be reached Monday.
The state audit means each agency’s general fund reserves gets a much-needed injection of cash as both face multi-million shortfalls and widespread cuts next fiscal year. County officials have talked about cutting several programs that aren’t required by the state. And Hollister has shrunk its workforce through layoffs and an offering of early retirement packages.
Hollister interim City Manager Clint Quilter announced the $387,000 revelation at a Council meeting last week. But he followed the positive bulletin with some disheartening news about Hollister’s financial projections.
The city’s recently released independent budget study over-appraised the general fund reserve by $400,000, he reported to the council. And the firm forgot to calculate overtime costs into its projections, which means its annual estimates through 2009 were off by another half-million dollars.
Hollister Mayor Tony Bruscia called the extra money “a huge plus,” which translates on paper into several employee positions.
“But the bottom line is the net result,” Bruscia said. “Where do we stand financially? And that’s what matters.”
