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As Item 6 on the agenda of the July 5, 2005, Mission Viejo council meeting, the council discussed the Mission Viejo Community Foundation. My letter to the editor regarding this matter was published in the Saddleback Valley News on July 15, 2005. The Mission Viejo Community Foundation is for worthy community improvements, namely the Norman Murray Community Center expansion. The employees of the foundation are not, however, employees of the city. The city council by 4-1 (with Council Member Gail Reavis dissenting) approved Item 6, the donation of $188,625 for 2005-2006. Reavis stated she voted against the disbursement because it was a no-bid contract. The foundation’s balance for 2006-07 is $212,125. The donations are taxpayer funds and, as such, several questions need to be resolved.1) Since these are taxpayer funds, audited financial statements need to be requested by the city. Tax returns for the foundation do not accomplish this purpose. 2) At the time of the disbursement, a foundation director may not have been in place. Are these donations going to pay the director’s salary and, if so, how much? 3) What type of rent, property expenses and other costs are paid by the foundation? Are the donations from the city ultimately paying these expenses? 4) Since the taxpayer is the ultimate payer of all expenses with the use of city funds, just what is the city purchasing with these disbursements? James Edward Woodin |
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