Update – Drowning In Debt
Nearly a month ago the City of Stockton, California was on the brink of financial disaster. On June 28, 2012, Stockton became a Chapter 9 Bankruptcy debtor. Now we’re finding out that
might be the next city on the list to follow in Stockton’s foot steps.
Jurupa Valley is a new city with no permanent employees, and no lavish employee pension plans. City Hall can be found in a leased strip-mall storefront next to the Lucky Wok Chinese restaurant. As the city is so new it hasn’t had the time or opportunity to amass the financial problems that fellow California cities, Mammoth Lakes, San Bernardino, and Stockton, have become known for. Jurupa Valley’s financial problems are directly attributable to Sacramento.
Jurupa Valley lost $6.8 million in revenue, nearly half of the city’s yearly budget, when Sacramento took money collected from statewide vehicle license fees, to prop up the states failing budget in 2011. The city is a frugal one, with all of the city employee’s being hired as contractors, from the city manager to the city clerks who answer the phones. Fire and Police protection are the respective responsibility of the California Department of Forestry & Fire Protection, and The Riverside County Sheriff’s Department.
Since early 2012 there has been a growing exodus of businesses and residents from California. That ongoing exodus has caused a 22% reduction in state tax revenues. The ongoing California financial issues, if not addressed, will cause Jurupa Valley to cease to be a city and again be swallowed up by unincorporated Riverside County.