Politics & Government
Officials Publish Financial Analysis for City
City is at a "crossroads," officials paint an economically-dismal scenario.
Baldwin Park officials recently published the City's 2013-2014 budget and Long Term Financial Plan in order to identify financial issues and implement economic solutions.
The financial analysis portrays a dismal look with the lack of economic opportunities available, combined with past years of revenue shortfalls, the Recession, elimination of redevelopment and increased retirement costs have wreaked havoc on the City.
Officials are being presented with two viable options to continue offering basic services and deal with projected deficits:
- Create new, or increase exiting taxes ( Generate at least $4 million annually)
- Contract policing services with the Los Angeles County Sheriff's Department.
City officials believe that the Recession that has impacted so many over the last five years is "officially over," but the economy has a long way to go to see major improvements.
City officials stated that the recession has impacted younger generations particularly hard, which has hit Baldwin Park residents hard as well; one-third of the City's population is between 15-34 years old.
Median income for the city is at around $50,972, compared to $55,166 five years ago, officials said. The poverty rate increased from 17.4 percent in 2011 to 19 percent in 2012.
From the City's perspective, the last two budgets were adopted with deficits, eight employees were laid off, 57 non-sworn and four sworn positions in the police department were eliminated, officials said.
Vasquez & Co., CPA LLP was hired to review the City's 2013-2014 budget and Long Term Financial Plan.
Aalthough the City is projected to see a modest increase in revenue from 2014 to 2023, expenditures would keep the City in the red, ranging from $3 million to $4.9 million each year in the projected 10 year period, the report showed.
Addressing the projected cost comparison of continued services with the Baldwin Park Police Department versus the Los Angeles County Sheriff's Department, the city could save between $3.8 million and $5.8 million from 2013-2014 to 2022-2023, the report showed; virtually offsetting the deficit projections.