City Hires New Firm for Rigorous Audits

After being told that changing auditors is part of a healthy system of checks and balances, the City Council agreed to hire a new independent auditor who is expected to provide more rigorous analysis of Ventura’s finances than in years past.

After a brief presentation by Thomas Snow of KPMG Peat Marwick on Monday night, the council agreed to hire the firm for the next three years at a cost of $143,400, or about $48,000 a year.

Marilyn Leuck, director of management resources, said the city has paid $35,000 to $39,000 per audit in the past.

“We are recommending a higher amount and asking for a more comprehensive effort,” Leuck said.

Peat Marwick audits more than 40 cities and counties in the Los Angeles area, including Los Angeles County, Santa Clarita, Santa Barbara and Oxnard.

Snow said his firm will make recommendations for the city after comparing its revenues and expenditures with other California coastal cities.

“We can point you in the direction of cities that are doing what you want to do,” he said.

In his presentation, Snow showed that Ventura’s expenditures have exceeded its revenues three times in the last 10 years--not unusual for a California city.

Snow also showed that Ventura’s general fund balance is extremely high as a percentage of revenue, particularly compared with such cities as Burbank, South Pasadena and Beverly Hills.

“In Los Angeles . . . you don’t see many reserve balances like that,” he said.

The audit is expected to be completed by December or January.