The city of Dos Palos in Merced County misspent $2.2 million in Measure V transportation tax funds due to outdated accounting and interfund borrowing. The funds were used to cover deficits in water, trash, and sewer services.
- The city plans to sell land and consider raising water, trash, and sewer rates to repay the money. - MCAG will withhold future Measure V funding until the account is restored.
- Mayor Reed expressed anger and sadness, noting the financial impact on residents, with a median income of $42,000 and 17% poverty rate. The city council will discuss options at meetings this week, including outside financing for road repairs.