Beaumont has a lot of work to do to become a sustainable, viable city. Years of mismanagement, perhaps in part of a criminal nature, have created a perilous situation for city government, residents and taxpayers.
The city got itself deeply in the red, much to the disappointment and revulsion of the public, but now potentially finds itself in a situation where it might have to turn to the same public it failed to ask for even more revenues. This was the critical point of discussion at the Aug. 11 meeting of the Beaumont City Council.
“We started to do some multi-year forecasts,” consultant Michael Busch explained to the council. “It is ugly, to say the least.”
Without reforms — be they increased revenues or significantly lowered costs — the city will continue on a course that most likely would culminate in service cuts and eventual bankruptcy.
This is particularly true given the looming $60 million judgment owed by the city to the Western Riverside Council of Governments after the city inexplicably breached the terms of an agreement to contribute toward a regional infrastructure fund.
But it’s also the consequence of a pattern of improper practices that saw the city continue to increase compensation packages to employees throughout the recession. More troublingly, the city has long operated without even knowing exactly how much money it actually had.
To alleviate the current state of the city, Busch presented a number of options for the city to consider. This includes keeping any/all options for service provision on the table, including contracting out services. It also includes looking into selling any surplus buildings or vehicles owned by the city.
“The city is not in the real estate development business,” he said. “We don’t see the need to hold surplus assets.”
The city is also working toward negotiating more reasonable agreements with employees, with the goal of aligning benefits and costs with the fiscal realities of the city.
Also on the table are proposals to revisit user fees in the city to recoup costs as well as a possible proposal for taxation.
“Going out right now would be a disaster,” consultant Bob Deis cautioned the city about tax hikes. “The only way those things get approved is when you have the trust of your community first.”
For a city with seven former officials facing corruption charges, that will be a hard sell. We encourage the city to pursue and exhaust all other options before it tries to convince residents and businesses to tax themselves.