A ‘dying’ city? Blythe officials call grand jury's report ill informed, sensationalized

Elected officials and residents of Blythe are railing against the Riverside County Grand Jury's determination that the town at the county's border with Arizona is "dying" amid financial hardship and loss of business.

The grand jury issued a report in May entitled: "City in Peril - Blythe is Dying," which the city disputed in a formal response last month.

Mayor Dale Reynolds requested in a letter accompanying the city council's response to the grand jury report "all of the evidentiary material, findings, and other information relied upon by, or presented to, the Grand Jury for its final report in its investigation of the City, as it is clear no information was obtained from the City to draw these conclusions."

The report said grand jury members visited several places around the city and interviewed all five city council members, plus the interim city manager, finance director, city attorney, police chief, and chief building official. But city officials say the grand jury never followed up about the details of their findings, leaving the final report incomplete.

Mallory Crecelius, Blythe's interim city manager, said Friday that the council has yet to hear back from the grand jury about the formal response. She added that according to state law, the grand jury could have requested to meet with the city officials and staff to discuss its findings.

"Had they done so, the City could have provided factual information to include in their report," Crecelius said by email. "The Grand Jury's failure to meet with the City resulted in a published report full of inaccurate information that caused damage to the character of the City."

Blythe has been scrutinized in recent years by the California state auditor, which issued a report last year critical of Blythe’s financial outlook and expressing concern for its future.

Auditors found the city had funds to cover operating costs for only a few months in advance, was borrowing money from some city accounts to pay others, had fallen behind on paying loans and ultimately was not collecting enough tax revenue.

It owed about $612,000 in interest on a $400,000 loan from 2004 for its municipal golf course, according to the audit. It acquired about $620,000 in debt for operating its trash collection services and was similarly operating its water utility services at a deficit.

Ultimately, the state audit warned that the city’s dire circumstances threatened its ability to provide for its residents. The city was ranked number three on the auditor’s list of California cities with the greatest overall risk to fiscal health. It has since improved to ninth.

The county grand jury's report came on the heels of the audit and published most of the same findings: The city had never fully recovered from the Great Recession. It cut its workforce by 25%. Businesses left, and the Kmart shut down. Vacant buildings housed squatters, and became regular kindling for a proliferation of arson. Violent crime was up by about 50% since 2017. For years family-owned farms had been acquired by large corporate owners that often sent harvests to more profitable markets, the report claimed.

"In the past decade, while Riverside County’s population has grown 8.4 percent, Blythe’s (non-inmate) population has fallen 19.5 percent," according to the report.

"The City’s expenditures have exceeded revenues for six of the last nine years for an accumulated loss of over $7.5 million," the jury added.

And: "The Code Enforcement Department is overwhelmed with over 400 open complaints currently on file and only two employees."

By the time the grand jury report was published, however, the city was already making an effort to improve — and in some ways was succeeding. In fiscal year 2010-2011 it had a budget deficit of $3.5 million, but by 2019-2020 had a surplus of $804,000, in part due to incrementally raising taxes. The city saved for years for a new fire engine, and Crecelius said it’s due to be delivered next year.

The city council reported in its response that while its general fund was in a $2.3 million deficit in fiscal year 2012, it was up to a $3.8 million surplus in 2021.

The grand jury's report parroted the state's audit in may ways, while adding the sensational title that the town was terminally ill. It repeatedly notes the city and its officials are failing.

"The realistic vision for Blythe is the continuation of declining or stagnant revenues," the grand jury wrote.

And it blamed the elected officials for making matters worse by being in denial: "City officials in Blythe have deep roots in this small city," adding later, "None of them want to face their friends and neighbors and explain that Blythe is failing."

Money and statistics aside, the report's condemning tone struck a nerve at the city.

"It is the opinion of the City that the Grand Jury had their minds made up about the City and what would be included in this Report before they stepped foot in Blythe or spoke to any City or community officials," the council wrote in its response.

The county and the city collaborate in many ways to provide services for residents there and in the large area of desert and farmland in the Palo Verde Valley, but the city's response claimed that the county appears to be reducing its role in the region, further isolating Blythe.

"The City would like to hear what the Board of Supervisors’ plan is to better support Blythe and the Palo Verde Valley to bring in new resources and badly needed investment," the council wrote.

Ultimately, elected officials and residents found the grand jury report insulting and say it threatens to make things harder for the city while it's still trying to improve its economy.

"The Grand Jury acknowledged the City is in need of investment and economic activity, but it appears they did not consider the consequences of issuing a damaging report to a city that has struggled to rebuild," the council wrote in its response.

Christopher Damien covers public safety and the criminal justice system. He can be reached at christopher.damien@desertsun.com or follow him at @chris_a_damien.

This article originally appeared on Palm Springs Desert Sun: Is Blythe ‘dying’? City officials slam Riverside County Grand Jury report