Pico Rivera Ranked as One of the Lowest Risk Cities

PICO RIVERA, Calif. – Nov. 25, 2020 - Out of the total 453 cities rated by the State of California, the City of Pico Rivera was rated as a “low-risk” city, as indicated by the City’s fiscal health score, primarily because of its liquidity and reserve strength. Pico Rivera ranked at the top 30 percent of all cities, ranked at #316 (up from #284 last year).

“I am proud of our city council and staff for taking prudent steps throughout the year to ensure we can continue to provide critically needed programs and services for the residents of Pico Rivera,” said Pico Rivera Mayor Gustavo Camacho. “Our goal and commitment to our residents has always been to continue providing uninterrupted city services whether or not we had a downturn in the economy. I believe given the state report we are in a position to continue to honor that commitment.”

The State’s rankings report identified the City of Compton as the riskiest (#1), with the least risky being the City of Tehama (#453). The rankings are based on an overall score of 100 points, where Pico Rivera received 82 points (compared to 75 points received in the previous year).

The State’s indicators, such as Revenue Growth, Debt Burden, Liquidity and General Fund Reserves, were taken from the City’s 2018-19 financial results. Areas where Pico Rivera displayed the strongest fiscal condition were: General Fund Reserves, Liquidity, Pension and Retiree Health Benefit Risk. These outcomes were by design and did not happen overnight. In the years with good financial results, the City began increasing its General Fund Reserves in case of an economic downturn. Additionally, the City was proactive in addressing pension reform and began sharing ongoing pension obligations with the labor force.

The City of Pico Rivera ranked the highest among the neighboring 10 cities shown in the table below:

Fiscal Health of California Cities – City Ranking

Additionally, only half of the neighboring cities share the Pico Rivera’s low-risk ranking. The City’s commitment to prudent fiscal practices and long-term strategic planning will undoubtedly improve its future rankings and overall economic outlook.

Full survey results can be accessed through the following link: https://www.auditor.ca.gov/local_high_risk/dashboard-csa.html

ABOUT PICO RIVERA

Pico Rivera is a thriving community that offers opportunities to all who live, work, and relax in the City. Situated on the eastern edge of the Los Angeles basin and the southern edge of the area known as the San Gabriel Valley, Pico Rivera is approximately 13 miles southeast of downtown Los Angeles. Formed through the merging of two historic communities, Pico and Rivera, the City was officially incorporated in January 1958 as the 61st city in Los Angeles County. Originally an agricultural area, the community evolved into a residential and industrial area following the end of World War II. Pico Rivera is governed by a Council-Manager form of government. The voters of Pico Rivera elect a five-member City Council, which in turn appoints a City Manager to carry out its policies and serve as the administrative head of the city organization.