In 2024, Richardson & Company, the external auditor for the El Dorado Hills Community Services District (District), faced public scrutiny over missing capital assets in Serrano Lighting and Landscape Assessment District No. 17—a 30-year-old assessment district that the District publicly referred to as a “shell.” Concerns intensified after revelations that over $1 million had been reimbursed for improvements that were never properly deeded or maintained, leaving these assets in private hands.

Worse, the District failed to ensure that all benefiting properties were properly assessed by its HOA subcontractor, violating California’s Constitution as implemented by the 1972 Landscape and Lighting Act. These oversights have resulted in improper billing practices, unassessed developer properties, and potential risks to the County-issued tax-exempt status of the bonds that originally funded these improvements.

Here’s what the District’s leadership—and its associated professionals—never expected to come to light.