The Santa Barbara County grand jury found a history of financial mismanagement in Guadalupe and called for the small city to disincoporate in a report released Friday.
The grand jury said the city of Guadalupe has inappropriately transferred more than $7.6 million into its general fund over the last 12 years in order to meet operating expenses.
The grand jury's report states that city officials transferred an average of $630,000 per year from restricted funds since fiscal year 2002-03 in what the report labeled a "shell game."