The California State Auditor released a report on the financially riskiest Cities in all of California and the City of Pico Rivera ranked amongstthe highest in the least riskiest Cities.
With 453 Cities in California, Pico Rivera was labeled as a “low risk” City, coming in at 316. Pico Rivera is the only City within this area that had a higher ranking. Neighboring Cities came in with rankings below 300, with one ranking 7 according to reports.
The City is in this position due to its financial responsibility and its financial health overall. A tough financial stance was immediately adopted as COVID-19 started to wreak havoc on local economies. The City took a strict approach in developing budget policies, coupled with financial transparency, and soon enough developed a financial plan that will keep the City books balanced for the next two years.
This is a strong indication to our residents that the City is 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 proves we are putting resident tax dollars to good use.”
As the City continues to adhere to the policies set in place that made it a “low risk” City, another agency provided another accolade to administration that proves the City’s financial toughness. The California Municipal Treasurers Association (CMTA) has granted the City Investment Policy Certification.
This Investment Policy Certification, through the CMTA, validates that the City’s Investment Policy adheres with the State of California Government Code and meets the program requirements within 18 different topics areas deemed to be best practices for investment policies. Those topics include: Scope, Prudence, Objective, Delegation of Authority, Ethics and Conflicts of Interest, Authorized Financial Dealers and Institutions, Authorized and Suitable Investments, Review of Investment Portfolio, Investment Pools/Mutual Funds, Collateralization, Safekeeping and Custody, Diversification, Maximum Maturities, Internal Controls, Performance Standards, Reporting, Investment Policy Adoption and Glossary.
“It’s no coincidence that we received these honors,” said Carmona. “We have a truly dedicated financial team that is working hard to ensure that our City’s financials are properly used and that ultimately our residents are the beneficiaries of all that hard work.” The City submitted its Investment Policy to the CMTA earlier this year. It was independently evaluated by three raters and was given a passing score by each rater with an average score of 94 amongst the three raters, far above the passing score of 85. The passing score earned the City a ‘Certified’ distinction.