GARDENA : Panel to Air Report on City’s Investments

The city’s investment advisory committee, which was established amid allegations that the city’s money has been mismanaged, is expected to make a presentation to the City Council by the end of this month.

The five-member committee has met three times to examine how city money is invested, protected and spent.

“Hopefully, we’ll find out things are in good shape, we’ll get a clean bill of health, and people will be less concerned about our situation,” Mayor Donald L. Dear said.

The committee is also discussing whether an appointed treasurer would serve the city better than an elected treasurer. Lorenzo F. Ybarra, who has been treasurer for seven years, is up for reelection in 1996.

Last month, Ybarra alleged in a letter to the city manager that the city had to scramble for funds to meet its payroll because the council had overspent in its effort to get a Smith’s Food & Drug Center developed. City officials, however, say they had $12 million in liquid funds to meet any obligations.

Ybarra has held back payments on the Smith’s site that were approved by the council, Dear said. Ybarra said the city does not have enough money to cover the payments.

Councilman Mas Fukai said he favors an appointed treasurer to provide a better system of checks and balances.

“A person should be qualified (for the office), and not (be) a person who can raise the most money to become a treasurer,” Fukai said. “Someone who knows investments, banking, bonding and the stock market. That type of criteria can be set and (a candidate) hired by the city.”

Once the committee has completed its review, city officials hope the findings will dispel public concern over Ybarra’s allegations that the city has mismanaged its funds.

“The truth will come out,” Fukai said. “If Ybarra is doing a good job, then that’s great. If he’s not, then the people should know about it. That’s the bottom line.”

Dear said he is also hopeful that the committee’s findings will ease public concern that Gardena could be rocked by the same financial problems that have struck Orange County and Hawthorne.

“We’re not a rich city, but we’re in good shape,” Dear said. “And we’re certainly better off than our neighboring cities.”

The committee is composed of City Manager Kenneth W. Landau and Financial Director Karen Brust, and three people nominated by the council: former Gardena treasurer George Kobayashi, Gardena businessman Bert CeDillos and Gardena banker Chuck Brooks. Landau denied earlier this month that the city was in financial trouble.

“I think this committee is for political purposes,” Ybarra said. “But it doesn’t matter either way, because I can’t lose. We have an open office, and we’re not hiding anything.”

Landau said the committee is conducting its review objectively.