Los Osos Community Service District General Manager Pete Kampa has submitted comments to the board to be heard September 15 assuring them that the agency’s past reporting delinquencies that could lead to fines or higher borrowing costs are big remedied.
Kampa says in this written report that the June suspension of the district’s bond rating is expected to be reversed soon once a required report is submitted. Kampa says it could take “up to 60 days” for the formal notice from Standard and Poors but he was hopeful it could happen sooner. Here are his comments.
“The District’s bond rating has been suspended pending the completion of what is called a “Continuing Disclosure Report”. This report was required for the first time beginning in late 2015 and the District did not have the internal expertise to complete the report, nor did we have a qualified consultant on board to assist in preparation of this very specialized report. We must meet all ongoing disclosure requirements to maintain a positive bond rating. Management determined early on that we did not have the expertise either internally or with the Wallace Group to comply with all bond disclosure requirements. Having successfully managed two 1915 Assessment Districts in the past, I was keenly aware that especially in small districts with limited and changing staffing, an experienced Assessment Administration firm is needed from the formation of the assessment district, through its maturity to ensure proper reporting and compliance.
On July 7,2016 the District entered into agreement with NBS Government Financial Group to complete the Report and assure that the District bond rating is restored. The Report was initially scheduled for completion on September 9, 2016, but has been delayed until the week of September 19 due to delays in receiving information from the Wallace Group and the County Tax Collector. Please look for a public notice to be issued when the Report has been submitted and District Bond rating returned to positive.”
Kampa says says the district has an obligation to the bond holders to maintain the rating on the existing bonds and without that it could cost the agency more to borrow money. Kampa who has been on the job for around 6 months says he came “at a time of lots of turmoil.”
Regards fines the report says ”No IRS or EDD fines issued: Although the District received notification of potential penalties and fines from the Internal Revenue Service (IRS) and Employment Development Department (EDD) due to missing filing deadlines and other matters, we have received no fines due to the fast action on the part of management, our accounting team and with office staff support to remedy the delinquent situation. No fines or penalties will be levied by these agencies against the district for the previously reported delinquencies. District office staff stepped up and assisted greatly in this effort by locating documentation and completing information requests immediately.”