The California State Auditor recently released a report on the financially riskiest Cities in all of California, and the City of Pico Rivera ranked amongst the highest in the least riskiest Cities.
With 430 Cities in California rated, Pico Rivera was labeled once again as a “low-risk” City, coming in at 284. Pico Rivera is the only City within this area that had a higher ranking. Four neighboring Cities came in with rankings below 284, with one ranking 5, according to reports.
The City improved its overall score from 82 to 84 out of a total of 100 possible points. The State’s indicators, such as Revenue Growth, Debt Burden, Liquidity, and General Fund Reserves, were taken from the City’s Fiscal year 2020- 21 financial results. Areas where the City displayed the strongest fiscal condition were: General Fund Reserves, Liquidity, Pension, and Retiree Health Benefits Risk (the risk that these obligations will have big spikes in future years.) The rating is primarily attributed to the continuing improvement of the General Fund reserve, investment liquidity, healthy revenue growth, and continuing contribution to the Section 115 trust account for the unfunded needs such as Other Post-Employment Benefit (OPEB) liabilities.
This is a strong indication to our residents that the City continues to be committed to ensuring the fiscal responsibility of our residents’ tax dollars,” said City Manager Steve Carmona. “Having a higher ranking on paper is one thing. However, I believe our Staff and the continued services provided during these tough times demonstrate we are putting resident tax dollars to good use.”
The City looks forward to the next report with the State Controller’s assessment for the Fiscal Year 2021-22 as the City’s economy gradually recovers to the pre-pandemic levels. The City’s commitment to prudent fiscal practices and long-term strategic planning will undoubtedly improve future rankings and our overall economic outlook.