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Resident raises questions about downtown assessment spending, calls for audit

May 25, 2025 | Los Banos, Merced County, California


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Resident raises questions about downtown assessment spending, calls for audit
At the May 21 public forum a downtown property owner raised concerns about how Property‑Based Improvement District (PBID) funds have been spent and asked the city to press for a financial audit of the Downtown Association.

Speaker Mark Dudes said his review found a shortfall between PBID assessments paid over several years and visible downtown improvements. He told the council he estimated the PBID collected about $750,000 over five years and questioned how those funds were allocated. "I'm concerned about now. We've collected over the last 5 years 750000 dollars in assessments. Where bridal that go?" he asked.

Dudes described specific line items he said were listed in project documents — planters, trash receptacles, security cameras and benches — and said the totals he reviewed did not appear to match the $750,000 figure. He said the Downtown Association had hired a CPA (Newger and Company) and he had not seen audit reports; he asked the city for oversight and noted the city had asked the Downtown Association for an audit.

City staff acknowledged the Downtown Association has been asked to provide an audit for the period in question and indicated the city intends to follow up. No formal action or ordinance was proposed at the meeting; the remarks were taken under public comment and will be available in the public record.

The council did not take immediate action on the PBID issue during the May 21 meeting; staff said they would continue to pursue the association’s audit and provide updates to the council when available.

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