Years of bad choices, out of control litigation and overbearing pension costs have put Rialto in a very uneasy place when it comes to being able to pay its financial obligations. One of the most pressing matters in regards to the cities budget is the upcoming expiration of the cities Utility Users Tax that accounts for about a third of the cities budget. If the Utility Users Tax is not continued for another five years Rialto will find itself unable to meet its obligations and our reserves will be depleted in 2 years. (see image below)
You may ask yourself what is fueling this budget busting trend? Employee Pensions are killing our city the same way they killed cities like San Bernardino. Rialto has not fully paid their PERS obligations hoping that PERS investments will preform better than expected and bail us out. Well they have not done that and now the city finds itself $130 Million in debt to PERS. Rialto’s pension payment will increase by $1.5 Million each year for the next 10 years!!!!!
Rialto not only did not pay what they knew they had to pay but sources close to major bargaining units and City Hall itself say that payments were regularly late under the watch of former Finance Director George Harris. Mr. Harris no longer works for the city of Rialto and the circumstances surrounding his forced departure remain a mystery filled with rumors and speculation.
The chart above shows how expensive each residential unit is in Rialto Vrs the amount of money that is brought in by these units and where a lion share of the money comes from. As you can see the single largest amount of revenue is from the Utility Users Tax. The chart above also spells out that each residential unit costs the city $800 Thousand more than they bring into the city.
As you can see keeping the Utility Users Tax gives us the funds necessary to find better solutions to our pension obligations all the way to 2024! Nobody likes taxes and we all know that we live in the most heavily taxed state in the country but, many look at reduced police and fire services as a bad trade off for continuing to pay what we already have been paying.
What does need to change in the minds of many is the reckless disregard for the citizens money. Some on council and in City Hall have been putting this city under a financial obligation that we should have never been in. They have been unable to properly administer workmans comp and that has cost us millions, they have gone on personal which hunts after people that they think are plotting against them and are costing us millions and they have refused to control high ranking employees and have allowed them to put the city under a horrible financial obligation and have chased employees out in droves.
Tonight city Council and the Mayor will once again be asked to:
- Declare a State of Financial Emergency.
- Putt the Utility Users Tax on the ballot for April.
- Keep the Utility Users Tax at it’s current rate and term.
They were unwilling to do this earlier this year with the same information meaning they didn’t seem to care if we found ourselves in financial ruin.
So the question is where do you want to see Rialto in the next 5 to 10 years?
rialtonow 