Club Says Mismanagement Leads to Debts of $55,000 : Moorpark: Youth group asks city to delay repayment of a loan as it recovers from deficit and directive to pay back taxes.

Financial mismanagement by the previous administration of the Moorpark Boys & Girls Club has resulted in debts of $55,000--about half of the club’s annual budget--administrators told a Moorpark City Council committee Tuesday.

Club officials projected a $25,000 deficit this fiscal year because of past management problems. The club must also pay the Internal Revenue Service $30,000 in back taxes this year, President Tony Linton said.

Linton told the Finance Committee, which will report to the full City Council on the club’s requests for financial breaks, that the organization is still suffering problems that were created years ago.

A 1992 audit showed that state and federal taxes were unpaid for a three-year period beginning in 1989 and that thousands of dollars in bills were long past due, Linton said.

“When I came on board (in 1992), there were a myriad of problems,” said Antoinette Carbone-Sarcinella, executive director. “If it had been any other board, they would have said, ‘Let’s close the doors and declare bankruptcy.’ ”

The problems, which included non-payment of insurance premiums to protect the club from legal liability, were detected after former Executive Director Dominik Lee voluntarily resigned two years ago, Linton said.

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Lee, who left the organization to attend law school in San Diego, could not be reached for comment. Club officials said they have lost track of him.

About 60% of the club’s budget goes to pay its staff of three full-time and two part-time employees. Officials estimated that the club spends about $31,000 on sports leagues and youth activities for an estimated 1,300 youngsters.

In addition to the $25,000 budget deficit and $30,000 in back taxes, the club is carrying a $300,000 debt on an old high school gym that it bought from the Moorpark Unified School District two years ago.

A $50,000 payment on the gym debt is due the city this fall and another $100,000 must be paid to the school district in 1996, Linton said. The club borrowed the $50,000 from the city to make the purchase.

Tuesday evening, Linton asked the Finance Committee to help the club resolve its problems by backing a one- or two-year delay in the $50,000 repayment. He also asked the city to forgive the $2,400 annual interest payment on the loan.

Committee members said they might consider putting off the repayment but would probably not defer interest. They said they wanted to take a closer look at the club’s financial records before making any recommendations.

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Councilman Scott Montgomery, a committee member, said in an interview that he did not think that the city can afford to give the club any money.

“The city is determined that they stay afloat,” he said. “Apparently they’re carrying a large ball and chain from a previous administration. . . . Perhaps we can offer some suggestions on how to manage their budget. Perhaps we can act as an intermediary with the IRS. I don’t know what else we could do right now.”

Linton said he hopes that the club will regain financial health through intensive fund-raising and by applying for new grants. The organization also hopes that the IRS, which has been encouraging in its response, will agree to a long-term payment plan.