Problems With Cities
If we’re going to compare, let’s really compare
A central message of proponents for Arden Arcade cityhood has been that we can be as successful as Citrus Heights. It’s not surprising that they chose Citrus Heights for comparison; it’s the only city in our region that isn’t in truly dire straits.
Citrus Heights was actually the first city in the state to incorporate after the implementation of the 1992 revenue neutrality law. As a result, Citrus Heights sends a far smaller revenue neutrality payment back to the County. They also rode almost a decade-long economic boom.
How are other cities in our region doing?
Here are some quotes from local cities’ own 2010-2011 budget documents about their situation:
Elk Grove: “Although FY 2009-2010 presented the greatest financial challenges Elk Grove has endured… economic conditions are slow to improve… (The) continued unavailability of jobs, coupled with the State of California’s ongoing furlough program, will adversely impact the ability of Elk Grove citizens to purchase goods and afford their homes…. Sales tax is a volatile revenue source, yet it is the city’s largest single source for general operations.” Read the City of Elk Grove Annual Budget 2010-2011 Financial Analysis
Folsom: “Given the… anticipation that any recovery will, most certainly, be a slow process, it is reasonable to expect we will emerge with a new economic reality. This will be one with a redefining of (property values) and with little year over year growth.”
Read theCity of Folsom Budget 2010-2011 electronic page 8
Rancho Cordova: “…general fund revenues are lower than we projected….
“Growth rates seen during the first four years of cityhood, in both the building and retail industries, are not expected to return.”
Read the City of Rancho Cordova approved budget 2010-2011 electronic page 13 and 53
Lincoln: “…(t)he city has experienced a precipitous decline in revenues…. The growing gap between expenditures and revenues has become untenable. Since 2008, the organization has lost 81 positions and is less able to provide the services our businesses and residents have come to expect…. For the current year, sales tax has fallen by 15% and property tax has decreased by 18% from last year’s levels.”
Read the City of Lincoln 2010-2011 budget, Section I budget message, electronic p. 7 and 8
And there is more about other cities throughout the state...
California cities are lowering standards to raise revenue
By Alana Semuels | Los Angeles Times Posted: 10/ 18/2010
Financially struggling municipalities that once shunned such businesses as casinos, tattoo parlors and certain big-box retailers are considering easing rules to plug budget gaps.
LOS ANGELES - Like many municipalities across the state and nation, Turlock, Calif., is struggling to plug a sizable budget hole. So city officials are looking to court big-box retailers.
It's not exactly a novel plan for ginning up jobs and sales tax revenue in a slow economy. But it's remarkable for Turlock considering that six years ago this city of 70,000 waged a read more
San Diego pension payouts likened to city of Bell
Contra Costa Times
Posted: 10/05/2010
SAN DIEGO — According to Sandiego6.com a report was released Oct. 4 that documents large retirement payouts for former city of San Diego employees.
The report was prepared by Marcia Fritz, president of the California Foundation for Pension Reform and states that the top 10 recipients of pensions in the city of San Diego will receive a combined $61.5 million over the next 25 years. read more
The end of Half Moon Bay?
By Julia Scott |
San Mateo County Times
Posted: 08/27/2010 T
HALF MOON BAY -- Between budget losses and lawsuit payments, Half Moon Bay's financials have become so dire that if a local sales tax measure doesn't pass this November, officials say they may have to disincorporate. read more
City manager explains proposed tax (City of Lincoln)
Stephanie Dumm | News Messenger Reporter
Posted: 7/12/2010
While Mayor Tom Cosgrove said last week that city employees could not advocate for or against the council’s proposed utility users’ tax, City Manager Jim Estep discussed the tax at Tuesday’s Lincoln Area Chamber of Commerce’s government-affairs meeting.
Cosgrove’s comments were made during the public comment portion of the last council meeting when a resident asked the council, “is it reasonable to expect citizens to pay for a large expenditure to sell them on something they may not want.” read more
City of Bell lent employees, elected officials nearly $900,000
Former assistant city manager received at least $200,000. Experts say such a city loan program for employees is unusual
By Jeff Gottlieb, Kimi Yoshino and Ruben Vives |Los Angeles Times.
Posted August 18, 2010
CITY OF BELL -- The city of Bell gave nearly $900,000 in loans to former City Administrator Robert Rizzo, city employees and at least two council members in the last several years, according to records reviewed by The Times.
The documents show that Bell's former assistant city manager, Angela Spaccia, received two loans of at least $100,000 each and that council members Oscar Hernandez and Luis Artiga received $20,000 loans. Rizzo, whose huge salary sparked a scandal that forced him and other city officials to step down, received two loans for $80,000 each, city officials said. read more
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City of Bell salaries: Robert Rizzo is only a symptom
Pay caps and greater transparency are a start in preventing more abuse, but what's really needed is an overhaul of the California Constitution.
By Ben Boychuk | Opinion in LA Times
Posted August 11, 2010
How do you solve a problem like Robert Rizzo? In the short run, there will be a push for greater transparency, pay caps and restrictions on pension benefits. These things may quell the immediate outrage over revelations that the city manager of working-class Bell and other top officials earned fat, six-figure incomes. But the truth is, the eye-popping salaries, platinum pensions and lavish perks accorded Rizzo and his colleagues are merely symptoms, not the disease. read more
