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November 9, 2024
By Brian Hews
An examination of Central Basin board meeting financial records by Los Cerritos Community News has revealed a massive drop in cash reserves and cash on hand, the drop occurring after Burke, Williams, and Sorenson attorney Victor Ponto took over as general manager of the Commerce-based water agency.
The appointment of Ponto was triggered by the illegal move by certain CB Board Members to place GM Dr. Alex Rojas on paid administrative leave in February of this year.
The drop in cash coincides with the presidency of (former Director) Michael Gualtieri and the majority of VP Martha Camacho-Rodriguez and Directors Juan Garza and former director Thomas Bekele.
The agency’s financial position is reported monthly during board meetings, which outline “unrestricted investment portfolio” funds; unrestricted funds can be used for any general expense of the agency.
Central Basin records show that in January 2024, cash in the bank was $2.3 million. Just one month later, the cash in the bank dropped by nearly $300,000. During that time Burke, William Sorensen was paid $140,000.
Then in April, the cash in the bank dropped $1.1 million, followed by a $100,000 drop in May.
According to sources, Central Basin makes money every month due to dependable recycled water sales, so the $1.4 million decrease in cash is highly unusual.
In addition to the cash in bank total, the balance of CB’s California Treasurer’s Local Investment Fund, a fund where the agency contributes periodically to earn interest, saw a $1 million drop in value in March 2024, just weeks before Ponto left as GM. An examination of records going back to 2020 show that the California Treasurer’s Local Investment Fund has never dropped.
For comparison, Rojas, hired in August 2020, started with a $14 million total and ended the 20-’21 fiscal year at $15 million. For’ 21-’22, the agency ended the year with $18 million, a total increase due to the sale of CB’s building in Commerce.
For 22-23, the agency went from $17 million to $13 million, paying down debts, which increased its all-important Standard and Poor’s credit rating.
Central Basin Water Assigned A3 Rating By Moody’s
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In January 2024, the fund was at $13.5 million; Rojas was placed on leave in early February.
As of July 2024, the total fund is down $3.676 million to $10.537 million as can be seen below.
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Spreadsheet generated by Central Basin GM Elaine Jeng in the July Accounting and Finance agenda packet. The cash-in-bank balance when Rojas was placed on leave was $14.213 million. In July the balance was $10.537 million for a drop in cash of $3.676 million.
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Editor’s note: This story was published in print on August 23, 2024. Since then, the agency, under the guidance of General Counsel Victor Ponto and GM Elaine Jeng, have not included the cash in bank report with the August, September, or October Administration and Finance agenda.
See agendas