City of Arcata Bankrupt?
Seems like they might need to use one of their lifelines:
“In a Dec. 15 letter, the DOF has told the City of Arcata that it is exercising its authority to “claw back assets that were inappropriately transferred,” and expects a payment of $2.415 million made to the county auditor by tomorrow, Dec. 21.
The stunning blow stems from the City’s efforts in March, 2011, to salvage the affordable housing projects it had been funding via the Redevelopment Agency. When the cash-strapped State of California dissolved redevelopment agencies and claimed the funds, the City scrambled to transfer and obligate those monies before they could be taken away.”
meanwhile in San Diego…..
Some of the city’s biggest bills aren’t under its control.
A court will ultimately decide whether Prop. B, which would give most new city staffers 401(k) plans instead of pensions, completely goes into effect. If Filner implements a pensionable pay freeze, the initiative is projected to save the city cash in the long run but could require the city to pay off more than $2 billion in pension debt more quickly than it would otherwise.
That will likely mean a $27 million bill next year, said Chief Operating Officer Jay Goldstone, who appeared with Filner Wednesday.
The city is bracing for another pension bill too.
The city’s retirement system assumes a 7.5 percent return on investment over the long term. The return turned out to be 0.9 percent this year and the city’s operating fund will need to cover the majority of the extra cost. Goldstone projects an $8 million to $10 million bill above its current estimate for next year.
State officials largely dictate the city’s bills in other areas.
The state eliminated redevelopment agencies in San Diego and elsewhere to balance its budget.
That left the city with a $13.8 million loan payment for Petco Park and the convention center, an amount that wasn’t factored into Sanders’ budget projections. The debt payments will increase in coming years.
Late Tuesday, the state Department of Finance notified San Diego officials some projects originally planned to be bolstered by redevelopment funds won’t get $4.8 billion the city had expected.
A fire station, an affordable housing project and homeless shelter were among those planned developments.
The city is also awaiting another related decision that could have a greater impact on its day-to-day budget. The state Controller’s Office will soon say whether the state can charge the city for previous redevelopment expenditures.
The city estimates that bill, known as a “claw back,” could be up to $28 million.