The California State Auditor recently released its annual fiscal health rankings for California’s cities for the fiscal year ending June 30, 2019. It examined data for 453 governments in California and divided them into three categories: low risk, moderate risk, and severe risk. It is important to note that the published data evaluates agencies’ fiscal health before the impacts of the consistently emerging COVID-19 pandemic, whose economic consequences are still widely unknown. In assessing financial risk, cities must consider the pandemic’s immediate effect, including the shelter-in-place orders and market conditions and the pandemic’s lasting effects after the immediate effects have passed.
The City of Colton ranked in the moderate risk category with an overall state rank of 216. The City has made significant gains in some of the assessed financial risk categories, which may be attributed to the City Council and City management’s commitment to the City’s fiscal health and sustainability. While there is much to celebrate in the City’s fiscal health ranking, there continue to be challenges that lie ahead. Current and future pension and OPEB obligations continue to rise annually, challenging the City to devote available resources to those costs. Additionally, the uncertainty of the effects of the global pandemic on our community now looms. And while local revenues are well insulated from the state’s budgetary challenges, the City should expect substantial impacts from other state and federal funding sources, such as the in Local Streets and Roads (LSR) funds, to include the Highway Users Tax Account (HUTA) and the SB1 Road Maintenance and Rehabilitation Account (RMRA).
I am confident City leadership will continue to make the City’s fiscal health a priority. Together we will ensure the successful and prosperous future of the City of Colton.
For more information please click here: https://www.auditor.ca.gov/local_high_risk/dashboard-csa.html.