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Mayor Tom Adams: Monrovia Faces a Serious Struggle


The Monrovia City Council tonight approved a series of measures, including a big bond measure, (see here for details: https://goo.gl/Hvp1se) to prevent the city from going bankrupt over the next few years from increases in pension costs.

Mayor Tom Adams said, “Monrovia will be okay, but, boy! it’ll be a struggle.”  But neither he or City Manager Oliver Chi was optimistic about the fate of many other cities and government agencies throughout the state, saying there will likely be “a lot of bankruptcies.”

Chi and Adams blamed the state for changes it made during the Gray Davis administration that increased costs for its CalPERS retirement program. Chi added that some cities have already been tracking and dealing with these liabilities and he proposed that Monrovia's city staff be required in the future to inform the council of any new liabilities that will - likely - come along. 

Chi is recommending buying a bond to cover the shortfall (total unfunded pension liability is $112 million) because borrowing costs are at an historic low, currently in the 4 percent range. 

- Brad Haugaard 

2 comments:

  1. Why not call out all the retired police, firemen, and teachers as the real people behind this problem? The fact is, cops are retiring at 45 with huge pensions. Why won't the mayor stop sidestepping the issue by just blaming the boogy men at the state level. Call out the people who are really getting this money

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    Replies
    1. So true. No one wants to address the elephant in the room.

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