Desert Hot Springs, CA: Is Desert Hot Springs, California soon to be the next bankruptcy city?
Around 150 residents from the community of Desert Hot Springs, California attended a special meeting of the Desert Hot Springs City Council Tuesday night to discuss possible solutions for the current budget shortfall and potential bankruptcy.
Interim Desert Hot Springs City Manager Robert Adams reportedly painted a bleak picture of the City of Desert Hot Springs’ finances estimating a structural deficit between $3.7 million and $6.9 million dollars if the City of Desert Hot Springs continues with the current budget.
Members of the Desert Hot Springs City Council heard an outlined a list of 102 items that the Desert Hot Springs City Council can consider to make cuts which included cut the auto allowance of Desert Hot Springs City Council Members by 50%, cut the amount spent on paying out leave and vacation time to employees, the elimination of five sworn police department officer positions currently unstaffed, furlough days, issue a 10 percent cut in city employee benefits, close down the community’s senior center, and eliminating $250,000 in funding for the Boy and Girls Club.
Members of the Desert Hot Springs City Council will decide where to make cuts at their next Desert Hot Springs City Council Meeting being held on Tuesday, November 19th, 2013.
While it is unclear how this might affect public safety, Interim Desert Hot Springs City Manager Robert Adams made it clear that this will not be a quick fix.
Last Friday, Interim Desert Hot Springs City Manager Bob Adams reportedly said that City of Desert Hot Springs’ Leaders were warned weeks ago that Desert Hot Springs, California is facing significant financial problems in the coming fiscal year, but did not provide further information or specific numbers until the City of Desert Hot Springs knows for sure how bad the situation could be for the community.
If the City of Desert Hot Springs seeks Chapter 9 protection, Desert Hot Springs would be the third California cities to declare in bankruptcy joining San Bernardino, California which has a population of around 210,000 people and Stockton, California which has a population of around 292,000 people.
This is the City of Desert Hot Springs’ second pitch to a bankruptcy judge since 2001 when the City of Desert Hot Springs reportedly could not afford to pay a legal judgment.
The City of Desert Hot Springs reportedly exited bankruptcy in 2004.
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