City Council President Scott Peters has called a special meeting Thursday to discuss the Securities and Exchange Commission’s ongoing investigation of the city of San Diego.
A public comment period will be held at 11 a.m. in the City Council chambers before the council retreats to a closed session to discuss the SEC probe.
The SEC is investigating the city for including errors and omissions on the financial disclosure documents accompanying bonds that were issued in 2002 and 2003. Consultants at Kroll found that those financial statements did not accurately report the city’s mounting pension deficit or that the city’s sewer rate structure jeopardized $265 million in loans and grants and exposed it to $200 million in litigation.
There have been indications that the SEC is close to bringing an enforcement action against the city. A local newspaper’s editorial board claimed to have obtained a copy of a draft settlement with the city last week.
City Attorney Mike Aguirre has sought a settlement with the SEC on behalf of the city government, while the officials who oversaw the city’s books have been represented by private attorneys. Lawyers close to the investigation say that several individuals have sought to settle with the agency. Legal bills show that Councilwoman Toni Atkins’ attorney has also met with the SEC to negotiate a settlement.
Stay tuned for more coverage.