Despite ongoing financial issues within the city of Dos Palos, the Dos Palos City Council was hit with major auditing concerns and forced to come to a consensus on fire safety with Merced County.
On July 15, the council received an audited financial report by Price Paige and Company from the dates of July 1, 2023, through June 30, 2024.
The financial statements were audited in accordance with the American Institute of Certified Public Accountants and the Government Accountability Office’s audit standards.
While Price Paige and Company did not find any fraud or illegal acts, it still believes the city’s funds are in financial jeopardy. The city’s water and refuse funds are experiencing ongoing challenges that require internal loans from other funds to be paid off.
Although this debt was detected in past audits, the significance of the loss in the general fund triggered a larger concern for the auditors.
In May, the council approved Proposition 218, which increases the rate of refuse and street sweeping for the city in hopes of fixing the ongoing financial challenges.
Both Assistant City Manager Manuela Sousa and Councilmember Claudia Bautista felt that the issue had already been tackled, and this audit has not yet reflected these changes made by Proposition 218. “That’s why we increased our rates in the water and our refuse,” said Sousa.
“I am confident that with the recent increases in the rates through Proposition 218, soon we’ll be out of the hole,” added Bautista.
The city also discussed and approved entering into a memorandum of understanding (MOU) with Merced County for stop-gap fire services until Dec. 31, 2026.
Stop-gap fire services are part of an agreement between city and county officials, which allows the county to respond to fire emergencies within a city.
In lieu of the state facing ongoing financial challenges, the Merced County Board of Supervisors has been voting to close and consolidate fire stations within nearby cities.
With original plans to merge both Dos Palos fire stations and close Fire Station 76 on June 30, county supervisors ultimately decided to keep Fire Station 75 at the Dos Palos Y open and Fire Station 76 funded and staffed for the next 15 months.
Mayor Katy Reed believes approving the MOU with Merced County for stop-gap fire services will provide safety for the city and give the council more time to determine what it will do in the future after the 2026 deadline.
“Technically, we were supposed to close June 30,” Reed said. “This is extended until Dec. 31 of 2026, so not signing it leaves us at risk every single day,” she added.
Although Dos Palos has successfully received funds from Measure S, a special tax used to fund fire department expenses, the Merced FOCUS reported in June that county officials could still be confronted with a $1.3 million price tag to keep both fire stations running.
Approval of the MOU will offer the city protection and the council more time to plan for the future of fire safety in Dos Palos. In the meantime, the city will pay tax money to Merced County for its fire protection services.
