Revised Reserves at Central Basin Decrease by $3.6 Million following Attorney's Appointment

In a concerning development, California's Central Basin water agency is facing financial difficulties and the potential loss of insurance coverage.

The agency's cash reserves and cash on hand have significantly decreased since the appointment of Victor Ponto as general manager. According to reports, Central Basin ended the 2022-2023 fiscal year with $18 million, but went down to $13 million for the 2023-2024 fiscal year.

The drop in cash was first noticed in May 2024, when the cash in the bank dropped by $100,000. This was followed by a more substantial drop of $1.1 million in April 2024, and a further $300,000 drop in February 2024. The latest posted cash report shows a nearly $5 million drop in cash compared to the February 2024 report when Ponto took over as general manager.

The agency's insurance carrier has cited a recent spate of lawsuits as one of the reasons for the risk of losing insurance coverage. Central Basin is at risk of losing its insurance coverage due to board actions, as notified by the agency's insurance carrier.

These financial challenges come after certain CB Board Members placed GM Dr. Alex Rojas on paid administrative leave in February 2024, and appointed attorney Victor Ponto as acting CB General Manager. Some Central Basin Directors began taking more in payments to attend meetings after illegally voting to put Rojas on paid leave and appointing Ponto as acting GM.

After Ponto's appointment, several employees received pay increases in December 2023. However, no new information about the fiscal year budget was provided in the current paragraph.

The California Treasurer's Local Investment Fund, a fund where Central Basin contributes periodically to earn interest, saw a $1 million drop in value in March 2024. No new information about the cash reserves or cash on hand was provided in the current paragraph.

The situation at Central Basin has raised concerns among the public and other water agencies, including Facebook, Twitter, Instagram, LinkedIn, and Mail. The agency's financial troubles and potential loss of insurance coverage could have far-reaching implications for the water supply in the region.

As the situation continues to develop, Central Basin will need to address these financial challenges and work to regain the trust of its stakeholders. The agency's board and management will need to take immediate action to stabilise the agency's finances and ensure the continuity of water services for the communities it serves.