Arroyo Grande facing bankruptcy in five years

January 31, 2018

By KAREN VELIE

Arroyo Grande’s projected deficit spending could bankrupt the city in five years, according to a 10-year financial outlook presented to the City Council last month. [Cal Coast Times]

A projected 52 percent increase in employee retirement expenditures and a 62 percent increase in the cost of working with the Five Cities Fire Authority have escalated the city’s deficit spending projections. As a result, city staff is asking the council to consider a combination of spending reductions and revenue creating options.

City staff is recommending a thorough review of fire service options which include contracting with CalFire, working with the Five Cities Fire Authority or having a city run fire department. In addition, city officials are considering staff reductions, eliminating park and recreation services and contracting out services.

Last week, the council began to consider selling off city owned properties, raising fees and raising taxes.

The city is facing a deficit of $583,000 during the 2017/2019 budget years, $1.7 million in the 2020/2021 budget years and $3.4 million in the 2027/2028 budget years, according to the city financial forecast. Under current budget projections, the city is slated to deplete its current reserve of $7 million by 2023.

Mayor Jim Hill warned that the quality of life in Arroyo Grande will decline if the council does not consider promoting new businesses and closing some fire stations.

“The other elephant in the room is the Five Cities Fire Authority and the 60 plus percent cost increase there, which in my view is unsustainable,” Hill said. “We need to make Arroyo Grande a business friendly place.”







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George Bailey

Ladies & Gentlemen,

Unfortunately for the taxpaying residents of Arroyo Grande, voters elected Caren ray, Kristen Barneich and Barbara Harmon to make financial decisions for the municipality. These three libetard Democrats are not business friendly and are captives of the public employee unions, so expect things to grow worse before they get better.

You watch: instead of pursuing business development or fiscal austerity, Caren Ray & Co. will push for a tax increase to cover-up their irresponsibility, and voters ought to throw these three out-of-office as soon as possible.

We deserve better than cuts in services and tax hikes.

Just saying,

George Bailey

kayaknut

Ray, Barneich and Harmon are also bought and paid for by Nick Tompkins and his like and instead of requiring him to build commercial that has a long term revenue stream they allow him to build “workplace” housing that is selling for $600,000+ each. Just who is this workplace housing for? but al least Ray, Barneich and harmon got their kickbacks.

horse_soldier

Don’t forget Jim Guthrie. He voted with Barneich and Harmon before Ray rejoined the council.

kayaknut

And before that was Good Ole Boy Costello, who voted however Ferrara wanted him too.

1965buick

A wealthy city like AG and they still couldn’t figure it out. Disgraceful.

Jorge Estrada

By law pension liabilities get funded first, roads and services are last. Unlike Social Security, where the earned benefits can be morphed and the tax ceiling raised for more revenue, cities (corporations) need to be fiscally responsible. Maybe bankruptcy is a good idea for a reset?

kayaknut

Time to change the law.

The Identarian

Gov. Brown is hoping the courts will allow the State to break its pension promises. That is the only option for this broken State government. The fascinating thing is how the cities and state got into this pension abuse in the first place. That is the question every thinking citizen in California should be asking. Of course old Moonbeam is at least partially responsible, he helped public employee unions get started here.

c.d.cox

As I have said before do away with unions and minimum wage cut property taxes.Leave it to the progressives (democrats) and they will tax you out house and home.

rukidding

There are probably a few other cities that are in the same boat. Many are doing deficit spending, have enormous unfunded liabilites and can only cook the books so much during the audit season. They have over extended their credit cards and we should not be responsible for bailing them out. Curious what bank ruptcy might do about their liabilities? It may be a way to clean systems up that have been abused, thin the crop and restructure.

Polititian Not

Love the “Immigrants”. They will refuse to say it but between the Illegals and excessive Pay and Retirement benefits AG will be screwed. If not now a few years down the line.

nunsense

“revenue creating options” gotta love those code words. sounds much better than “tax, tax, tax”

sloweb

Second only to “State Board of Equalization” .

sloweb

Oh yeah, and “California Men’s Colony”. Is that like Malibu Colony? Those are really desirable places to live, right? Who in the %&*# is in charge of coming up with these names?