Because of a reporting error, the timing of the council vote and the percentage of revenue from non-residents were incorrect in a previous version of this story.Compton this week became the latest city in California to find itself on the brink of bankruptcy, and as with others in crisis, much of the blame lies with questionable financial practices.Ĭity officials announced that Compton could run out of money by summer's end, with $3 million in the bank and more than $5 million in bills due.Ī longer-term problem is a $43-million deficit that the city amassed after years of improperly using money from water, sewer and retirement funds to balance its general fund. If that levy ultimately goes into effect, about 29% of the tax’s revenues would come from non-residents, according to city estimates. The cuts would take effect July 1 in the event the sales tax measure is not approved by voters.Įditor’s note: The Torrance City Council is scheduled to vote in February on whether to put a sales tax measure on the June 2022 ballot. But those budgets - which make up 62%, or about $8 million, of the city’s general fund expenses - could see similar cuts during the May 2022 budget hearings. The fate of the Police and Fire departments’ budgets have not yet been decided, however. Reducing or eliminating hours at the Benstead Plunge.Eliminating the Torrance Theatre Company Summer Musical event.
But it would also reduce services, including: Doing so, according to city estimates, would save the city about $13.9 million. 12, discussed a possible 5% cut from multiple departments during the next fiscal year, which begins July 1, if the sales tax doesn’t pass. “Beginning in March of 2020, the City of Torrance experienced a cyber incident followed immediately with the declaration of local health emergency by Los Angeles County and the City of Torrance due to the pandemic.”īased on the forecast, city staff have anticipated a recurring structural deficit from $12.5 million to $14.1 million from the 2023-24 fiscal year to the 2030-31 year.Ĭity staffers, during a council meeting this week, proposed balancing the operating budget, if the tax doesn’t pass, with severe cost cutting. “The adverse impacts of COVID-19 significantly altered our lives, and changed the ways in which we do business and deliver public services to our community,” City Manager Aram Chaparyan said in statement in the proposed budget plan. Torrance residents would pay about $130 per person annually or $11 per month on average, based on an analysis by city staff. The sales tax, if enacted by voters, would generate roughly $26.7 million per year, with about 29% paid by non-residents, according to city estimates. The tax, city leaders have said, would help recover from financial losses related to the coronavirus pandemic and ongoing pension issues. The City Council will vote in February to place a three-quarter cent sales tax measure on the ballot for the statewide midterm primary elections. Torrance is listed as the fourth worst city, below Compton, San Gabriel and Blythe. Since July, the city of Torrance has remained in the top 10 of the California State Auditor’s Office’s ranking of cities facing financial distress. Many of the financial cuts, officials said, depend on whether voters approve a proposed sales tax during the June 2022 election.
Torrance leaders could implement a 5% cut across various city departments next fiscal year in an effort to address the financial distress the city is facing - even though doing so could slash police and fire budgets and close the Torrance Art Museum.
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