Poway Holds $16K in Unclaimed Funds. Is Some of It Yours?

Some Powegians may have extra cash coming their way this year, and it won't be in the form of a tax refund. Poway is holding nearly $16,000 in unclaimed funds and, by law, the city has a fiduciary duty to find the owners and return the money. But at least one business owner said the effort has not been enough.

The monies are for return deposits, refunds to people who overpaid for county or city services, and vendor services. Checks were issued and sent to those owed the money but never cashed. As of April 1, Poway was holding nearly $16,000 in outstanding checks that are older than three years, said John French, director of administrative services.

“Every April, the Finance Division reviews the outstanding check register for uncashed city-issued checks over three years old,” he said. “A list is prepared and circulated among staff to attempt to identify payees.”

The city then attempts to contact those people by phone, mail or email and if a payee is found, the city will then reissue the check.

By law, local governments are required to publish a legal notice for items $15 and over that have been unclaimed for more than three years. Citizens then have 45 days from the first date of publication to claim the item or money. Any funds left after 45 days will become the property of the local government and can no longer be claimed. In Poway, the city manager prepares a report that is sent to the City Council for approval before the money is returned to the general fund.

Critics of the system say there is an inherent incentive for local government to keep people from finding out what is due to them. The city of Poway publishes its list annually in May in the Poway News Chieftain, a weekly newspaper that publishes every Thursday and is delivered to 90 percent of homes in Poway, according to its publisher, Pomerado News.

“The question is, ‘How hard they are looking for these people?’ ” said Larry Stirling, a retired judge, former California State Assemblyman and former San Diego City Councilman who is a staunch critic of the system as a whole. 

He said the system, as it is currently, amounts to “organized theft” by local municipalities. Last year, nearly $6,500 was returned to the general fund in Poway alone. The process whereby unclaimed money is returned to the city’s general fund is called escheatment. 

He points to the list published annually as an example. Last year’s Poway list showed some big-name companies such as SDG&E, Trader Joe's and PureFlo Water Company. 

“These are names you and I can look up using Google,” Stirling said. “Nine out of 10 times I was able to find them,” he said. In addition, Stirling said he uses zabasearch.com to search for individual names on the list.

But the public notice does sometimes work. Poway Girl Scout Troop No. 8632 was able to claim its fund after seeing the notice in the Chieftain. Mary Doyle, San Diego Girl Scout's communications director, said the issue was “resolved within a week of the notice being in the paper.” The unclaimed money was a deposit for using the city’s auditorium.

Unlike the city and county of San Diego, Poway doesn't make its list available on its website. The county also holds an annual news conference to let people know about the unclaimed funds. The county of San Diego is currently holding more than 4,700 unclaimed checks totaling almost $400,000. Both the city and county of San Diego update their list on a regular basis, while Poway does it once a year.

Last year’s list (see image on right) shows there are 38 unclaimed checks totaling almost $6,500. This year’s number is higher because the city hasn't started to contact the people on the list yet.

While the Chieftain is delivered to 90 percent of homes in Poway, Ed Stoughton, a Poway business owner says he does not read it. His company, DOS Canucks LLC was listed in the public notice that was published in the Chieftain on May 20 and 27, 2010, with $1,250 owed to him.

Stoughton owns , and DOS Canucks LLC was a corporate shell for one of the buildings he was constructing. Stoughton is one business owner who isn't happy about the city's current arrangement, and he said if the roles were reversed, the outcome would be different.

“If I sent the city a check, and the city moved and didn't cash the check, I can't imagine a circumstance whereby I can say, ‘Well, you didn't cash it,’ ” he said. “It doesn’t seem like a leveled playing field. I would not be able to conduct my business like that.”

After being contacted by Patch, Stoughton called Poway Finance Manager Andrew White to see if there was any way he still can claim the money. White said it was doubtful, but he will have to check with the city’s attorney.

Stoughton said this calls into question how hard the city is looking for these individuals.

A search of the California Secretary of State’s listing of businesses shows DOS Canucks LLC’s current mailing address as well as a contact person. A search of whitepages.com using the contact person’s name yielded a phone number. 

But Poway City Councilman Dave Grosch said that the city makes “every possible attempt to find the owner.” He said that sometimes the people on the list are the city’s own employees.

When asked about whether there is an incentive for the city to keep the people in the dark about monies owed to them, Grosch said that wasn't the case in Poway.

“If they know who it is, they will contact the person,” he said. “If the city's done their due diligence, I don't know what else they can do.”

As for big-name companies such as SDG&E, Grosch said he could not comment without knowing all the particulars. Calls to SDG&E and PureFlo Water were not returned.

This year's list has not been released by the city yet. Poway Patch will publish the list once it is available in late May.